How Do Price Changes Affect Consumer Perceptions?
By Kara FinnertyJun 1
Since the end of 2010, when Amazon invested $175m in Living Social – the group buying website has been closely watch by investors.
We have a look at livingsocial’s journey through social media from it’s Amazon investment to today’s news on its $3bn valuation. What does the investment and new valuation mean for consumers and is it only as good as the offers it pedals?
Fig 1. Volume of mentions for livingsocial.com
Fig 2. Living Social vs Groupon – social media chat
Major spikes in Groupon traffic:
Since Groupon spurned a $6bn takeover by Google earlier this year, the business is rumoured to have been valued at $25bn, higher Google’s $23 billion market value when it went public in August 2004.
So does all this talk of investment and rivalry make the deals better? Unless bi-weekly fish pedicures are your thing, not really.