Groupon built its business model on the premise that
A)consumers would be receptive to online sweepstakes.
B)businesses would be willing to post their 30-second TV advertising on a social network.
C)consumers would want to "check in" and earn points and badges for visiting businesses.
D)consumers would band together and try a new product or service if businesses would offer lower prices to entice them to take advantage of a daily deal offered to them.
E)consumers would be willing to pay for fun and exciting online video games that are playable on their smartphones and tablet devices.

Question

Quizplus · Accepted Answer

Groupon's business model is based on offering daily deals to consumers from local businesses. By offering significant discounts, the company hoped to entice consumers to try new products or services, while also providing businesses with exposure and increased foot traffic. This model relied on the assumption that consumers would be willing to join together to take advantage of the deals offered.

Groupon Built Its Business Model on the Premise That