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Question: Mobile Apps. The Tim Horton's mobile application has a new user add $5.00 to the account when it is opened. If the user buys a $2.00 coffee, then Tim's has $3.00 of the users money in their hands, not in the user's pocket! After a second coffee purchase (the next day?), they still have $1.00 of the user's money. If a third purchase of a breakfast sandwich and coffee is $7.00, then you will be asked to add $10, and this results in the TH app having ($1 +$10= $11- $7 = $4.00) of the user's money. No matter how you slice the Tim Horton's application, it appears they will have more of your money than is needed. Discuss this point and anything the description above is missing. What does it mean in terms of revenue management, and what perhaps in the aggregate (10,000 app users) is the result of this program for TH. Feel free to bring other apps into the conversation to demonstrate the points you are trying to make. Is Starbucks the same thing?
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