Question
Please refer to information provided for American Apparel. If all information remains the same except: 25% of Groupon redeemers are prior customers who would have
Please refer to information provided for American Apparel. If all information remains the same except: 25% of Groupon redeemers are prior customers who would have bought anyway calculate (show all the work) Groupons profit = and AAs profits = " American Apparel ran a popular deal in which it offered $50 worth of clothing for $25, selling 133,000 vouchers. Afterwards, a company insider listed several positive effects. First, customers spent an average of $20 above the vouchers face value when cashing in the deal.a The promotion also attracted many new customers: The killer was email address acquisition.... We converted approximately 25% of in store redemptions into signing up for our email list... which is on track to generate an additional five to six figures in online revenue. Finally, American Apparel negotiated a contract that gave Groupon much much less than half of the voucher revenue."
this question is based on harvard case for marketing.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started