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- W2615187459 abstract "We consider the problem faced by a business that is considering using the Groupon platform to sell excess inventory. We discuss how demand functions can be derived using management knowledge. Then, using a single period model where excess inventory is exogenous, we show that the decision to use Groupon and the price to set on that channel depend on two parameters: the relative price sensitivity of Groupon customers as compared to the retailer's regular customers and the relative size of the Groupon market as compared to the regular market. Under a two-period model, when initial inventory is a decision, we show optimal inventory quantities. Our two-period model suggests that managers may plan on using Groupon and order inventory accordingly. We discuss the implications on third party channels as well as retail managers." @default.
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- W2615187459 date "2017-01-01" @default.
- W2615187459 modified "2023-09-24" @default.
- W2615187459 title "Pricing of excess inventory on Groupon" @default.
- W2615187459 doi "https://doi.org/10.1504/ijrm.2017.084152" @default.
- W2615187459 hasPublicationYear "2017" @default.
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