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special discounts for coupon services

Recently a number of companies have offered special discounts to customers who subscribe to electronic coupon services. For instance, an electronic coupon provider will establish a relationship with restaurant to discount prices to customers who show the restaurant an electronic coupon displayed from their smartphone. Clearly, those who have smartphones, members of social networks, and subscribe to a coupon service may benefit from this offering. The coupon service can also collect subscription fees from subscribers as well as electronic ad fees from restaurants. The restaurants can benefit by capturing sales they may not have otherwise obtained had they not advertised a discount in this medium.

There are pros and cons to this marketing approach. State your agreement or disagreement with this practice using your understanding of the information presented in the lectures, text readings and other relevant sources.

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I agree with the practice of offering special discounts to subscribers of coupon services. From the perspective of the marketer, the showing of coupons and obtaining a discount amounts to sales promotion. The marketer is able to use new media methods to induce new customers to try her product. Let us take the example of a restaurant. How may be selling products with very special tastes but unless he can get new customers to try his products, he will not be able to increase the number of persons that patronize his restaurant. The electronic coupons provide a strong incentive to the customers to try out the new restaurant.

From the perspective of the marketer there is an advantage if the product being offered at a ...

Solution Summary

This answer provides you an excellent discussion on special discounts for coupon services