Question

Groupon.com offers discounts on products and services in specific cities. The concept of Groupon is that the discount for the product or service can be claimed only if a certain number of people purchase it. Groupon would BEST be described as a:
a. media sharing site
b. microblog
c. social networking site
d. virtual world
e. social commerce site

Answer 1

Answer:

E) Social commerce site

Explanation:

As the name implies, a social commerce site like Groupon.com is a business that combines aspects of social media with commerce. The social media aspect is meant to be collaborative in the sense that people interact with each other in order to increase the sales of the business.

In this scenario, people collaborate with each other by reaching a certain treshold that allows them to get a benefit, the discount. The treshold is the minimum number of people that have to purchase the product for the discount to become effective.

This strategy benefits both Groupon.com with more sales revenue, and benefits customers because they get a discount, and take part in a social activity.