Case Analysis: What’s the Deal with Living Social

Living Social is a digital marketing platform that connects merchants with consumers. It utilizes social media platforms such as Facebook promote products and services within their area. It also offers coupons as a way of benefiting both the consumer and the merchant.

Advantages and disadvantages of living social

  • For consumers

Living Social is beneficial to consumers as it helps them locate goods just by the use of their smartphones. It has created apps where they can look up a restaurant or a spa locally and internationally. It also helps them get these products and services at affordable prices. By using coupons, consumers can get a service for as cheap as half the regular price.

The main disadvantage is that many consumers are lured into getting services that they may not like. Since customers get a service because it’s discounted and not because they like it, they may not get satisfied by the service.

  • For merchants

Retailers benefit from the increase in sales with a cheap advertising option. Living Social offers a new and inexpensive form of advertising that generates traffic to many businesses within minutes.

However, most first time customers do not always stay loyal to the merchants, and retaining them is still an issue to merchants.

  • New product

The new Killer product for Living Social is the creation of submarkets. These submarkets target small businesses in small cities that have growth potential. The product benefits Merchants exposing them and giving them the chance to grow. Consumers on the other hand benefit by getting affordable services wherever they are without limiting on geographical location. This product differentiates Living Social from its competitors by providing it with the chance to expand geographically.

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