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  • 2 weeks later...

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Interesting article, the world of arvertising is changing and headed into new terrotories. I guess, we need to consider these new forms of attracting new customers. My only issue, which was mentioned in the article, is the loyalty aspect. Are consumer being too conidtioned to look for "good deals". We all know that a "good deal" does not always equate with the "best deal".

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True Joe, a "good deal" looker isn't a loyal customer at all. They can be turned into a loyal customer, but don't start out that way. Not only that, but you end up with less than 1/4 the actual cost of the service. The deal has to be for at least half-off and Groupon takes half of the sales price; $29.95 oil change costs the Groupon customer $14.90 or less, you get $7.45 or less. Definitely a loss leader, but as it says "no upfront costs". The costs are all on the back-end.

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True Joe, a "good deal" looker isn't a loyal customer at all. They can be turned into a loyal customer, but don't start out that way. Not only that, but you end up with less than 1/4 the actual cost of the service. The deal has to be for at least half-off and Groupon takes half of the sales price; $29.95 oil change costs the Groupon customer $14.90 or less, you get $7.45 or less. Definitely a loss leader, but as it says "no upfront costs". The costs are all on the back-end.

 

Do you think we are conditioning people to always look for the best deal in terms of money? There was a time when "quailty", not price, meant something to a lot of people. Now, I see more and more people focus on price alone.

 

Thoughts???

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