Question

Recently a number of companies have offered special discounts to customers who subscribe to electronic coupon services. For instance, an electronic coupon provider will establish a relationship with restaurant to discount prices to customers who show the restaurant an electronic coupon displayed from their smartphone. Clearly, those who have smartphones, members of social networks, and subscribe to a coupon service may benefit from this offering. The coupon service can also collect subscription fees from subscribers as well as electronic ad fees from restaurants. The restaurants can benefit by

Answer 1

by capturing sales they may not have otherwise obtained had they not advertised a discount in this medium. There are pros and cons to this marketing approach. State your agreement or disagreement with this practice in 400 to 500 words using your understanding of the information presented in the lectures, text readings and other relevant sources.

Answer 2

Here's a couple pros and cons to get you started:
PRO: the coupons are likely generating new clientele on a regular basis
CON: the new clientele are for the most part only looking for something on the cheap, and will not become regular patrons of your business.