Case | HBS Case Collection | August 2001 (Revised November 2001)

Vicinity Corporation: Turning Web Traffic into Store Traffic

by Frances X. Frei, David Margalit and Amanda Yelsh

Abstract

Vicinity uses its Internet and m-commerce technology to help drive traffic into its customers' physical distribution outlets. The company has terrific technology and is seemingly successful in getting more consumers into its customers' stores, yet it is in a precarious position. To date, Vicinity has not been able to identify which consumers it has influenced to go to the retail outlets. Without this ability, Vicinity can continue to get subscription-based fees from its customers but cannot get the much needed transaction-based fees. At the time of the case, Vicinity is in an unstable financial position and is facing the difficult dilemma of "closing the loop" and positively identifying consumers at the point of sale.

Keywords: Internet; Consumer Behavior; Mobile Technology;

Citation:

Frei, Frances X., David Margalit, and Amanda Yelsh. "Vicinity Corporation: Turning Web Traffic into Store Traffic." Harvard Business School Case 602-031, August 2001. (Revised November 2001.)