Research shows how companies can keep Black Friday deals from breaking their bottom line
Tuesday, November 25, 2014 - 07:01
in Mathematics & Economics
(Phys.org) —Websites like Slickdeals and FatWallet host deal forums where millions of promotions are posted online and carefully scrutinized by price sensitive consumers to find the very lowest prices. While this can be good for bargain hunters, it's often frustrating to firms when deals targeted at a small group of profitable customers are posted online. This can lead to the "Slickdeals Effect" where firms are hit with an unexpected avalanche of orders from untargeted, and often unprofitable, consumers.