In the relatively short time since founded Groupon, the answer to the “daily deals” services, the company through the marketing deeply discounted, pre-paid vouchers for online subscriber base, was by all accounts were spectacular to promote. Our analysis of the daily deals is a cautionary tale for merchants: a significant percentage is unlikely to benefit and may lose money by this kind of campaign. But a careful analysis of real data provides clear indicators for both the types of … Read more »

In the relatively short time since founded Groupon, the answer to the “daily deals” services, the company through the marketing deeply discounted, pre-paid vouchers for online subscriber base, was by all accounts were spectacular to promote. Our analysis of the daily deals is a cautionary tale for merchants: a significant percentage is unlikely to benefit and may lose money by this kind of campaign. But a careful analysis of real data provides clear indicators for the two types of traders who are likely to benefit, and the factors that influence profits is to get most of the attention of management.
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from
Sunil Gupta,
Ray Weaver
Timothy Keiningham,
Luke Williams
10 pages.
Release Date: 10 December 2012. Prod #: 513 059 PDF-ENG
Are daily deals good for traders? HBR case solution

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