Advertising Experiments at RestaurantGrades
1. Why not simply compare the outcomes (KPIs) of restaurants that have bought ads versus those that haven’t? How will do this? What will you miss out?
2. Which outcome is the most appropriate for the restaurant owner(s)? And for RestaurantGrades?
3. Should RestaurantGrades stick with their current design or switch to the alternative? How confident are you of your decision (justify using analysis) and what are possible concerns you may have?
You should read Groupon case and come to class prepared to discuss the following questions:
1. Does Groupon have a sustainable business model?
2. How do you explain Groupon’s unprecedented growth? Why has Groupon been so appealing to consumers?
3. Is Groupon good for merchants? Why are some merchants excited about Groupon promotions but others are highly skeptical?
4. Estimate the profitability of Groupon promotion for American Apparel (case p.6). What assumptions do you need to make for estimating this profitability and how sensitive are your results to these assumptions?
5. Groupon has attracted a lot of competitors. Does it have any competitive advantage?
6. What is your assessment of Groupon’s new initiatives dubbed as Groupon 2.0?