Question: In recent years, firms seeking to simplify the process of selling their products to busy customers have been turning to online apps, or Webbased application

In recent years, firms seeking to simplify the process of selling their products to busy customers have been turning to online apps, or Webbased application programs. One increasingly useful type of app for many small businesses is the quick-response (OR) app. These apps are offered by middlemen companies. such as Kaywa AT and Scanbuy. Inc. The apps enable sellers to create codes that they can place on poster ads. Consumers can scan the ads with their smartphones to place orders for the firms' products.
For instance, an individual who is about to board a commuter train can use a smartphone to scan a code from the ad of a coffee shop near the train's destination. The code enables the smartphone to acquire the QR app. which in turn displays the coffee shop's menu. from which the individual can choose items to purchase remotely. The individual can then pick up those items at the coffee shop upon arrival-hence completing a mobile purchase made possible by a middlemen company that offers the OR app linking the individual to the coffee shop.
For Critical Thinking
Why do you suppose that firms such as coffee shops are willing to pay fees to middlemen for ad codes to be used with QR apps?

Step by Step Solution

3.38 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Firms such as coffee shops are willing to pay fees to middlemen for ad codes to be used with OR ap... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1019-B-C-F-D-F(3000).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!