tag:blogger.com,1999:blog-7169279.post5746676367242353494..comments2023-11-24T03:20:02.361-07:00Comments on Tufte's Economics Classes Blog - A Living Textbook: Coupon SitesDr. Tuftehttp://www.blogger.com/profile/17397586052171706438noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-7169279.post-86206474758974624972011-11-17T11:15:29.389-07:002011-11-17T11:15:29.389-07:00-1 on Ethan for a grammatical mistake.
There actu...-1 on Ethan for a grammatical mistake.<br /><br />There actually is some stuff out in the popular business media about how groupon-like deals are not all they're cracked up to be for the firms employing the service.<br /><br />I actually think there's a big pitfall here for a manager that doesn't understand their marginal costs. I see this a lot around town. For example, think about aDr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-14320517167730431262011-11-15T22:49:38.384-07:002011-11-15T22:49:38.384-07:00Coupon Sites
I find it interesting that large com...Coupon Sites<br /><br />I find it interesting that large companies are making it so easy to purchase their product at little or no cost in order to gain loyalty. My question is does coupons really increase brand loyalty?<br /><br />My wife is a big coupon clipper and over the last few months has realized that purchasing multiple newspapers is no longer cost effective. This is based on the cost Ethanhttps://www.blogger.com/profile/17937128864632675664noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-1012899694632299182011-11-07T20:02:23.951-07:002011-11-07T20:02:23.951-07:00Xavier, yes I agree with what you are saying regar...Xavier, yes I agree with what you are saying regarding the authors ideas to reward referrals. Referral incentives are a great way to establish a customer base and create that loyalty that companies are wanting. What I meant by my earlier comment regarding a diminishing brand loyalty due to coupons is because the items that are being sold using coupons have a substitute. We know that when two Papa Smurfhttps://www.blogger.com/profile/00349476758704801771noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-73148567512101757462011-11-04T16:51:39.621-06:002011-11-04T16:51:39.621-06:00Reply to the second comment from Gubler Family.
S...Reply to the second comment from Gubler Family.<br /><br />Separating equilibrium is something that is in advanced ManEc texts, but not usually in basic ManEc books like the one used in this class. Here's <a href="http://mindyourdecisions.com/blog/2007/12/18/game-theory-tuesdays-curb-your-snobbery-on-gifts-it-is-smart/" rel="nofollow">an example</a>. You can also look at pp. 366-9 in your Dr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-86847883614857946882011-11-04T16:45:56.197-06:002011-11-04T16:45:56.197-06:00Response to the first comment from Gubler Family:
...Response to the first comment from Gubler Family:<br /><br />I think a lot of people (myself included) may underestimate the opportunity cost of using coupons. <br /><br />I mean, what is your opportunity cost? Choosing round numbers, if you get paid $60K, that's $30/hr, which is 50 cents a minute. And you'd need to count the time both clipping, organizing, reading, and so on.Dr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-45005311335998430312011-10-31T22:42:39.735-06:002011-10-31T22:42:39.735-06:00DR. Tufte
I am curious about this "Separating...DR. Tufte<br />I am curious about this "Separating the Equilibrium". Is that when one group of people has a perceived value on a product that is higher priced than do others? Which in return means that other people see no extra value and are willing to pay less than or a discounted price for a product with a different name?Ryan C. Gublerhttps://www.blogger.com/profile/15093373716873628325noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-88752539430927445112011-10-31T20:25:58.568-06:002011-10-31T20:25:58.568-06:00I find this topic to be fun because my wife is als...I find this topic to be fun because my wife is also a modest coupon clipper. Price discrimination has become more evident in couponing due to the shear volume of couponers and the volume of ways to get coupons. People willing to pay higher prices must have higher perceived value for the product which leaves them willing to spend maybe less time worring about the cost of the product. I also Ryan C. Gublerhttps://www.blogger.com/profile/15093373716873628325noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-60786525900199382532011-10-31T16:02:06.564-06:002011-10-31T16:02:06.564-06:00The article mentions that a company will sell to 2...The article mentions that a company will sell to 2,500 people by pricing an item at $2.50, but it also wants to get the other 1,000 who are willing to pay $2.00 for the product, so a coupon is offered. I agree that the purpose and design of coupons was to generate more customers. However, I can see now that coupons are considered "on sale" items. I know that whenever I purchase Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7169279.post-26541112392943580802011-10-31T12:26:47.934-06:002011-10-31T12:26:47.934-06:00Consumers are, for the most part, generally simply...Consumers are, for the most part, generally simply concerned with the final sales price of a product. It sounds good to people to hear themselves say they are into "couponing" and saving money, but it requires a lot of effort, and TIME. Each persons opportunity costs of spending the time required to be an effective couponer, is decisively unique. <br />There is a reality show dedicated Windwalkerhttps://www.blogger.com/profile/06215871573888530707noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-31503613499713810642011-10-30T23:16:44.823-06:002011-10-30T23:16:44.823-06:00I'm a (modest) clipper of coupons for brand na...I'm a (modest) clipper of coupons for brand name products my family already uses.<br /><br />As an economist though, I think Xavier is right. Price discrimination, through coupons, needs to require some fixed cost to establish (what is known as a) separating equilibrium. I wonder how much internet coupons have stepped away from that.Dr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-81812536306304065882011-10-29T15:53:26.856-06:002011-10-29T15:53:26.856-06:00I do agree with what you're saying Spencer to ...I do agree with what you're saying Spencer to a degree, but I don't think the author is implying that consumers don't care who makes what. The focus of the article seems more to be on creating brand loyalty through referral type programs. Also, I don't think consumers choose the lowest priced product simply because there are more substitutes (maybe that's not what you meant,Xavierhttps://www.blogger.com/profile/02996039029418395231noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-37544889168941062142011-10-29T15:21:25.594-06:002011-10-29T15:21:25.594-06:00I feel that one important point that the author ma...I feel that one important point that the author made is that with all of this couponing and so forth one aspect that is diminishing is brand loyalty of consumers. Essentially consumers don’t care who makes a razor, consumers simply want a functioning razor for the lowest price possible. Due to this consumers are not being acquired by companies or brands, consumers are simply price conscience Papa Smurfhttps://www.blogger.com/profile/00349476758704801771noreply@blogger.com