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    To Savor or To Groupon Case Study

    Uploaded by

    Shivang Sharma
    The document discusses the pros and cons of a restaurant owner using Groupon or Savored daily deals. It notes that Groupon may not provide many customers and could decrease total revenue if fixed and overhead costs are considered. Limiting the number of discounted tables through Savored has the advantage of controlling supply and leading to quick sales. Whether to opt for a Savored daily deal depends on how busy the restaurant currently is - it would be good for attracting customers if the restaurant is already busy, but not helpful for a less busy restaurant.

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    To Savor or To Groupon Case Study

    Uploaded by

    Shivang Sharma
    366 views1 page
    The document discusses the pros and cons of a restaurant owner using Groupon or Savored daily deals. It notes that Groupon may not provide many customers and could decrease total revenue if fixed and overhead costs are considered. Limiting the number of discounted tables through Savored has the advantage of controlling supply and leading to quick sales. Whether to opt for a Savored daily deal depends on how busy the restaurant currently is - it would be good for attracting customers if the restaurant is already busy, but not helpful for a less busy restaurant.

    Original Title

    To Savor or to Groupon Case Study (1)

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    The document discusses the pros and cons of a restaurant owner using Groupon or Savored daily deals. It notes that Groupon may not provide many customers and could decrease total revenue if fixed and overhead costs are considered. Limiting the number of discounted tables through Savored has the advantage of controlling supply and leading to quick sales. Whether to opt for a Savored daily deal depends on how busy the restaurant currently is - it would be good for attracting customers if the restaurant is already busy, but not helpful for a less busy restaurant.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    366 views1 page

    To Savor or To Groupon Case Study

    Uploaded by

    Shivang Sharma
    The document discusses the pros and cons of a restaurant owner using Groupon or Savored daily deals. It notes that Groupon may not provide many customers and could decrease total revenue if fixed and overhead costs are considered. Limiting the number of discounted tables through Savored has the advantage of controlling supply and leading to quick sales. Whether to opt for a Savored daily deal depends on how busy the restaurant currently is - it would be good for attracting customers if the restaurant is already busy, but not helpful for a less busy restaurant.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    To Savor or to Groupon

    Answer to Question 1 (Pg-488)

    I don't think so that all the aspects are taken into consideration. There is only
    marginal cost given and there is no fixed cost and operating cost is given as $10
    per table. The revenue earned per table is $60, which brings the operating
    profit as $50 per table. Groupon is not providing much customers to Mr. Chang
    and due to a smaller number of customers and higher operating cost, chances
    are there that total revenue can decrease for Mr. Chang. If fixed cost and other
    overhead expenses are taken into consideration, then a $5 profit would further
    decrease.
    So, as mentioned earlier that company hasn't considered the Fixed Cost and
    Overhead Expenses, if the company further considers it, then chances are
    there Mr. Chang might incur losses.

    Answer to Question 2 (Pg-488)

    As, demand is inversely related to supply, so as per the scheme of limited


    discount, there would be an increase in demand among the customers as
    supply has been restricted through number of discounts. This form of control
    will quickly lead to the sale of the limited daily deals. So, yes, there is an
    advantage of limiting the number of tables at a discount.

    Answer to Question 3 (Pg-488)

    This depends on the situation of whether the flow of customers is more or less
    in my restaurant. If I have a busy restaurant, then I would opt out for Savored’s
    daily deal as this will attract few customers through discounts. If I am not
    having a very restaurant, then I would not opt out for the limited daily deals.

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