In: Business and Management

Submitted By lovelove314330
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E-commerce. business. technology. society.

video case chapter 5 case 1 watch the video at

E-commerce Business Strategies
Deals Galore at Groupon

summary Groupon is a location-based service that helps consumers find great local deals and assists merchants in attracting and managing customers. L= 3:40.

Groupon’s business model is based on the theory that everyone loves a great deal. Groupon is a popular “deal of the day” Web site offering discounted gift certificates usable at local or national companies. Each day Groupon e-mails its subscribers discounted offers for goods and services that are targeted by location and personal preferences.
Customers purchase Groupons through Groupon’s Web site or mobile apps and redeem them with affiliated merchants. The discounts are huge—usually 50 to 90 percent off.
Groupon makes money by keeping approximately half the money the customer pays for the coupon. Most deals are only valid for several days and have a limited quantity.
Groupon started as a group coupon-broker of services, and initially deals were only met if a certain number of people purchased them. However, enough deals are purchased that
Groupon has been able to discard that tipping point for enabling deals. The company has grown rapidly (today it is in over 1000 cities in 48 countries) to become more of a marketplace and has expanded its offerings. Groupon Goods is an online deal-of-the-day department-style store; Groupon Live offers deals on live events; Groupon Reserve has premium deals from prestigious brands and companies. A recently released mobile app,



chapter 5

case 1

Deals Galore at Groupon


Snap, offers cash rewards to consumers for purchasing specific grocery items and sending a…...

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