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Top DOD retaillers Retailler Category City Shoebacca.com Clothing & Accessories Denver Occurrence Deals 10 2,576 Canvas on Demand Home Products & Services Seattle 8 1,447 ScanDigital Photographic & Photo Services Providence 7 308 Nutty Guys Food & Drink Nashville 6 809 Art.com Home Products & Services Baltimore 5 742 World Wide Photography Photographic Services Harrisburg 5 70 Fancy Fortune Cookies Food & Drink Augusta 4 39 Mattress Firm Home Products & Services Austin 4 1,263 The Body Shop "The New York Times" Beauty, Spa & Massage Books & Magazines Chicago Seattle 4 3 2,245 676 &RGLQJ:HEEDVHGFRQWHQWDGGVDGGLWLRQDOFRPSOH[LW\DQGYRODWLOLW\GXH WR WKH WUDQVLHQW QDWXUH RI :HE SDJHV :HDUH DQG /LQ ,Q WKH LQVWDQFH RI *URXSRQ¶V GHDO RI WKH GD\ HDFK GHDO UHPDLQV DOLYH DQG WKH QXPEHURIGHDOVERXJKWFDQEHWUDFNHGRYHUWKHGXUDWLRQRIWKHGHDO(YHQ WKRXJK WKH GHDO LV ³QR ORQJHU DYDLODEOH´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content analysis per category Category Art & Entertainment Auto Services Beauty, Spa & Massage Books & Magazines Charity Children Clothing & Accessories Education Fitness & Nutrition Food & Drink Health, Medical & Dental Holiday & Sightseeing Home Products & Services Pets Photographic & Photo Services Sports & Recreation Total Number Average Average Average Average of deals price discount number revenue per deal sold ($) 23.37 53% 687 12,370 84 25.15 58% 734 15,675 26 52.87 57% 565 23,760 118 20.89 56% 632 7,293 9 12 52% 317 3,804 1 20.11 51% 756 10,048 18 28.34 51% 402 10,085 44 36.33 60% 202 7,357 6 36.84 65% 365 12,353 51 14.84 51% 1,151 16,559 192 70% 293 31,437 38 218.39 99.5 54% 327 24,848 24 39 58% 394 15,361 76 17.5 50% 119 2,038 2 39.17 64% 229 7,789 29 51.16 53% 1,155 27,219 129 847 43.72 56% 739 18,297 CHAPTER 2: PAPER 1 8SWRWKLVSRLQWZHKDYHFRYHUHGWKHWKHRU\DQGOLWHUDWXUHUHODWLQJWRKRZ PDUNHWHUV XVH '2' LQ WKH QH[W VHFWLRQ ZH SUHVHQW WKH UHVXOWV RI RXU DQDO\VHVRIKRZFRQVXPHUVUHVSRQGHGWR'2' Results and Analysis :H H[DPLQHG GHDOV RYHU D WKUHHZHHN SHULRG LQ 86 FLWLHV 6HH $QQH[XUHIRUDFRPSOHWHOLVW'XULQJWKLVSHULRGDWRWDORIGHDOV ZHUH VROG ZLWK PRVW RI WKH GHDOV VROG LQ &KLFDJR SHUFHQW KRPH WR '2'DQGELUWKSODFHRI*URXSRQ 7DEOH±'HDOFKDUDFWHULVWLFV TABLE 3. DOD deal characteristics Deals Total number Sold out For new customers only With a hurdle - minimum requirement: Non-transferable Number Percent 847 80 9% 101 821 12% 97% 60 7% With purchase quantity restrictions 247 29% With redemption specifications: • Instore only • Online only • Redeem from home • Other 302 134 113 31 24 36% 44% 37% 10% 8% With stipulation regarding gift purchases: • May buy multiple deals as gifts • Additional gift purchases restricted 619 173 446 73% 28% 72% With restriction per person/family/household • May buy between 6 and 10 per unit • May buy up to 5 per unit 788 11 777 93% 1% 99% 'XULQJWKHWKUHHZHHNSHULRGRIDQDO\VLVRQO\UHWDLOHUVDSSHDUHGPRUH WKDQ RQFH DQG 6KRHEDFFDFRP &DQYDV RQ 'HPDQG DQG 6FDQ'LJLWDO WRSSHG WKH OLVW 5HIHU 7DEOH 2QH JOREDO EUDQG ± 7KH %RG\6KRS±ZDVLQWKHWRSWHQRIUHSHDW'2'UHWDLOHUV DEAL OF THE DAY 7KH DYHUDJHGHDOSULFH ZDV DQGWKH DYHUDJHGLVFRXQW SHUFHQW VRWKHDYHUDJHIDFHYDOXHZDV5HIHU7DEOH 0RVW GHDOV SHUFHQW GLGQRWKDYHDOLPLWHG DYDLODELOLW\2XWRI WKH 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