Restaurant.com

Restaurents.com

The gifts certificate is a good deal because discount coupons and certificates are popular nowadays as consumers are more educated and less ignorant. This has enabled to them to make savings by buying certificates online so that they can redeem them and get lower prices. This are also good as they are found online at an even cheaper price as compared to other media such as newspapers. With the growth in the number of internet users and most business activities going online the restaurant can tap into the market.

The business might have failed because even though it had gone online, it has failed to come up with good ways of attracting customers to their site. Since the customer could not do much but view the restaurants it resulted in poor user experience as it was less interactive. Customers might not have been fully aware of restaurent.com and there could have been trust issues with CitySpree as customers are very sceptical about making payments online.

It was necessary to purchase CitySpree as it had already established a business model. This would save Restaurent.com of the time it takes to build a business from the ground up. Lessons can be learnt from some of the failures Cityspree made. The existing market for both the businesses could be tapped onto. CitySpree also has user data which maybe be helpful in helping Restaurents.com meet market needs and also communicate with the existing customer base.

Restaurants were motivated to go online as they will not have to pay a fee of placing their WebPages of the restaurent.com portal. This is also a cheaper way to communicate with customers as technology has narrowed the gap between businesses and customers. These restaurants are also able to get more coverage as restuarent.com advert ices on popular sites. Online coupons are also cheaper for the restaurants as compared to the ones in newspapers.

Restaurant.com can lower its prices to stifle sales of emerging busineses. They also an established customer base they could increase their advertising campaigns slightly to counter act the arrival of new businesses. They could make more variations of products that can meet consumer wants as they already have useful data.