Economics - Discussion for online class Essay Example | Topics and Well Written Essays - 250 words

Economics - Discussion for online class - Essay ExampleIn terms of simple economic principles, satisfied customers would prevail to greater demand or essentially an increase in demand. However, surveys indicate that retailers operating with Groupon do not plan to issue similar deals for another vi months or so once they have allowed one deal package (Sloane, 2012).From Groupons perspective this means one thing only a marked descend in demand once retailers have used Groupon as a fast marketing tool. Essentially Groupon has the resources to galvanize large numbers of customers since it is attached to those customers. Retailers working with Groupon utilize this power of Groupon by using flash marketing by allowing deals to take place. Careful buyers will be expecting more deals in establish to shop more but retailers will never be ready to sell their goods or services at discounted prices repeatedly. Hence, this would lead to a demand decrease on the part of the retailers for Gr oupons services. This decrease in demand has affected Groupons business the most since supply is still available though at unfavorable price