To Savor or to Groupon? Use the spreadsheet Chapter 16-Groupon for any supporting analysis. 1. Assume...

 

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To Savor or to Groupon? Use the spreadsheet Chapter 16-Groupon for any supporting analysis. 1. Assume a variable cost of $10 per table and an average spending of $60 per table. With the daily deal ($60 for $30 coupon), Groupon provides Mr. Chang with a revenue of $15 per table. The analysis provided in the New York Times blog indicates that Mr. Chang makes money ($5 per table) through the daily deal (rather than incurring advertising expense). Do you think the analysis has included all aspects that need to be considered? Should Mr. Chang go ahead with the daily deal given that he can advertise while making a little bit of money per coupon? 2. With Savored, Mr. Chang can limit the number of tables he allows for the discount price. Assuming he makes the same revenue with Savored per discounted table as the daily deal ($15), do you think the ability to limit the number of tables at discount has any advantages? Would you prefer to use Savored or the daily deal? 3. Would you prefer to use Savored or the daily deal? Why? To Savor or to Groupon? Use the spreadsheet Chapter 16-Groupon for any supporting analysis. 1. Assume a variable cost of $10 per table and an average spending of $60 per table. With the daily deal ($60 for $30 coupon), Groupon provides Mr. Chang with a revenue of $15 per table. The analysis provided in the New York Times blog indicates that Mr. Chang makes money ($5 per table) through the daily deal (rather than incurring advertising expense). Do you think the analysis has included all aspects that need to be considered? Should Mr. Chang go ahead with the daily deal given that he can advertise while making a little bit of money per coupon? 2. With Savored, Mr. Chang can limit the number of tables he allows for the discount price. Assuming he makes the same revenue with Savored per discounted table as the daily deal ($15), do you think the ability to limit the number of tables at discount has any advantages? Would you prefer to use Savored or the daily deal? 3. Would you prefer to use Savored or the daily deal? Why?

Answer rating: 100% (QA)

Lets revisit the scenario We have not considered fixed cost at any point However the operating cost is 10 per table and earns a revenue of 60 This mea... View the full answer