Exam 38: Groupon vs.LivingSocial: Coupon Wars

Let's say that Amazon ultimately made a profit--not from the sale of the $20 cards-but from sales of books,CDs,and the like that cost well over $20 a unit.What kind of elasticity would that demonstrate?

Market saturation in the online deal industry would certainly affect the prices of goods and services.This is because it would __________.

The marketing event that took place between LivingSocial and Groupon is all of the following except __________.

Only Amazon profited-as it does in its standard credit card transactions-from the gift card.

What kind of pricing objective did LivingSocial have in selling something worth $20 for $10?

Selling $20 gift cards for $10 is,essentially,a variation of a loss-leader promotion.

Using Groupon coupons is first and foremost to generate a sale,any sale.

What is meant by the colorful term "land grabbing" when Groupon and its competitors offer attractive deals and promotions?

LivingSocial sold Amazon gift cards at a loss.Therefore,they are not a good or service on the basis of cost.

As it is suggested in the case study,Amazon,a direct investor in in LivingSocial,may have helped the company.How could Amazon have made money if it sold the discount cards at well below face value?