Groupon Built Its Business Model on the Premise That

question 154

Multiple Choice

Groupon built its business model on the premise that

• A)consumers would be receptive to online sweepstakes.
• B)businesses would be willing to post their 30-second TV advertising on a social network.
• C)consumers would want to "check in" and earn points and badges for visiting businesses.
• D)consumers would band together and try a new product or service if businesses would offer lower prices to entice them to take advantage of a daily deal offered to them.
• E)consumers would be willing to pay for fun and exciting online video games that are playable on their smartphones and tablet devices.

---

Definitions:

Unexpectedly High Earnings

Unexpectedly high earnings refer to a company's reported profits that significantly exceed analysts' forecasts or the company's own guidance.

Abnormal Price Change

A significant variation in the price of a security or trading instrument that cannot be explained by market fundamentals and might be attributed to extenuating circumstances or events.

Selection Bias

Selection bias is a distortion in statistical analysis resulting from the method of collecting samples, potentially causing results to not be representative of the wider population.

Market Efficiency

The degree to which market prices fully reflect all available information and expectations, enabling securities to be priced appropriately.