Do Social Deal Sites Really Work? - Case Analysis
1 Should Flanagan Theme Park approve the Daily-Dilly promotion? If yes, how should they design the deal? If no, why?
Social couponing sites provide daily discounts and coupons for members. Discounts run across various categories and industries: from food fairs to Whole Foods, beauty salons to theme parks. Users can opt to purchase the coupons, which generally provide discounts such as “2 days for the price of 1 at Brooklyn Museum” or “VIP access to Taste of DC.” Users then print the coupon and use it as specified. It is called "social couponing" because customers are encouraged to share their deal with friends on Social platforms like Facebook, Twitter or others. If a certain amount of friends buy the same deal, a special condition might be triggered (f.e. the friends get the same deal even cheaper).
In our case the question is whether the Australian theme park “Flanagan“ should cooperate with the social couponing provider Daily-Dilly or not. There are several aspects, why it makes sense for “Flanagan Theme Park” to do it:
In the short-run more customers would visit the park, because the couponing allows con-sumers interested in trying a new experience to do so at a lower cost/risk. Furthermore it en-tices consumers to try things they wouldn’t otherwise consider, just because of the cheap costs. This would positively affect the revenues of the park. This surplus of liquidity could be used in order to conduct necessary investments in the park (f.e. the water circulation system). These investments would help to enhance the quality of the park and represent a long-term benefit. A better park quality will have a positive influence on the customers’ satisfaction and his disposition to come back. In addition, a socio-psychological effect would take place: The higher attendance and the associated rise in queuing-time would make the people feel “they’re waiting for something special“. This derives from the fact that the actual benefit a visit in a theme park has fort
Social couponing sites provide daily discounts and coupons for members. Discounts run across various categories and industries: from food fairs to Whole Foods, beauty salons to theme parks. Users can opt to purchase the coupons, which generally provide discounts such as “2 days for the price of 1 at Brooklyn Museum” or “VIP access to Taste of DC.” Users then print the coupon and use it as specified. It is called "social couponing" because customers are encouraged to share their deal with friends on Social platforms like Facebook, Twitter or others. If a certain amount of friends buy the same deal, a special condition might be triggered (f.e. the friends get the same deal even cheaper).
In our case the question is whether the Australian theme park “Flanagan“ should cooperate with the social couponing provider Daily-Dilly or not. There are several aspects, why it makes sense for “Flanagan Theme Park” to do it:
In the short-run more customers would visit the park, because the couponing allows con-sumers interested in trying a new experience to do so at a lower cost/risk. Furthermore it en-tices consumers to try things they wouldn’t otherwise consider, just because of the cheap costs. This would positively affect the revenues of the park. This surplus of liquidity could be used in order to conduct necessary investments in the park (f.e. the water circulation system). These investments would help to enhance the quality of the park and represent a long-term benefit. A better park quality will have a positive influence on the customers’ satisfaction and his disposition to come back. In addition, a socio-psychological effect would take place: The higher attendance and the associated rise in queuing-time would make the people feel “they’re waiting for something special“. This derives from the fact that the actual benefit a visit in a theme park has fort