Advertising · Empirical multi-business analysis of Groupon promotion outcomes.
How Effective Are Groupon Promotions for Businesses?
Management Science · 2016
Summary
Promotion effectiveness varies substantially by business and deal execution; the study evaluates whether deals are profitable rather than assuming sales volume equals success.
For your marketing
Possible founder application
Use the study to frame a pricing or packaging hypothesis and identify outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Reported result
What the study found
Promotion effectiveness varies substantially by business and deal execution; the study evaluates whether deals are profitable rather than assuming sales volume equals success.
Research question
What the authors investigated
Under what conditions do deep daily-deal promotions produce profitable customer acquisition for businesses?
Design
Empirical multi-business analysis of Groupon promotion outcomes.
Sample and setting
Businesses running Groupon daily-deal promotions; redemption, profitability and repeat-purchase outcomes.
Scope and transfer
Limitations to keep in view
Business self-selection into Groupon and survey/retrospective outcome measures limit causal interpretation; results concern daily deals, not recurring SaaS discounts.
Research sources
INFORMS DOI landing page identifies the empirical Groupon-promotion article; the study’s design/context are described in its publisher record. Direct publisher-page retrieval was recorded on 2026-10-09; this profile uses the publisher abstract/metadata and does not claim independent review of unavailable full text.