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Groupon philosophy can be succinctly addressed then the deal becomes available to all. However, if
through the following quotes by the Groupon that assured minimum is not met, no one gets the deal
promoters. “We sell stuff we want to buy. A great that day. This reduces risk for retailers, who can treat
price is only half the battle - it's also got to be a great the coupons as quantity discounts as well as sales
product or service. Between our top-rated business promotion tools. Groupon makes money by keeping
partners and unbeatable prices, you should feel approximately half the money the customer pays for
comfortable venturing out and trying something new the coupon. With Groupon, the sellers do not pay any
- just because it's featured on Groupon. We want candid cost to participate. Groupon collects personal
Groupon to be an addiction you can feel good about.” information from willing consumers and then
contacts only those consumers, primarily by daily
The focus of Groupon has always been and will email, who may possibly be interested in a particular
continue to be on customer satisfaction through product or service.
customer service and customer support. Also There are certain challenges with the business model
Groupon Promise which says that “Nothing is more of Groupon. Firstly, a successful deal could
important to us than treating our customers well”, it temporarily swamp a small business with too many
shows how Groupon treasures its relationship with customers, risking a possibility that customers will be
the customers. This rule of the statement is quite dissatisfied, or that there won't be enough product to
simple that if Groupon let the customers down, just meet the demand. Secondly, many sellers (who have
call Groupon and it would return the purchase initially done their business with Groupon) may build
(Groupon.com, 2011). a loyal customer base which shops directly with the
seller, without Groupon in the middle.
Business Model
The idea for Groupon was developed as a solution to Competitors of Groupon
a common complaint mentioned by many people that Living Social
with so many options, sometimes they miss out on Living Social is a social deal website which has
trying various things their cities offer. Groupon commenced its operations in 2007. It is meant for
outgrew the campaign website ThePoint.com in those users who are interested to find deals in the
November 2008. Groupon makes this choice simple local areas. It has presence in over 613 markets in 19
by offering great deals from the best businesses in countries throughout the world and having strength of
local areas. And by leveraging The Point's framework 4500 employees. In order to purchase a Living Social
for collective buying, Groupon is able to offer deals deal a customer has to create a member account or
that make it very difficult to say no. The company sign up with Facebook, and they are then able to
offers one “Groupon” per day in each of the markets browse deals in their local area. Thus, Living Social
it serves. The Groupon works as an assurance is mobilizing social media functions to spread its
contract using The Point's platform: if a business and encourage users to connect their Living
predetermined number of people sign up for the offer, Social and social media accounts.
87
through the following quotes by the Groupon that assured minimum is not met, no one gets the deal
promoters. “We sell stuff we want to buy. A great that day. This reduces risk for retailers, who can treat
price is only half the battle - it's also got to be a great the coupons as quantity discounts as well as sales
product or service. Between our top-rated business promotion tools. Groupon makes money by keeping
partners and unbeatable prices, you should feel approximately half the money the customer pays for
comfortable venturing out and trying something new the coupon. With Groupon, the sellers do not pay any
- just because it's featured on Groupon. We want candid cost to participate. Groupon collects personal
Groupon to be an addiction you can feel good about.” information from willing consumers and then
contacts only those consumers, primarily by daily
The focus of Groupon has always been and will email, who may possibly be interested in a particular
continue to be on customer satisfaction through product or service.
customer service and customer support. Also There are certain challenges with the business model
Groupon Promise which says that “Nothing is more of Groupon. Firstly, a successful deal could
important to us than treating our customers well”, it temporarily swamp a small business with too many
shows how Groupon treasures its relationship with customers, risking a possibility that customers will be
the customers. This rule of the statement is quite dissatisfied, or that there won't be enough product to
simple that if Groupon let the customers down, just meet the demand. Secondly, many sellers (who have
call Groupon and it would return the purchase initially done their business with Groupon) may build
(Groupon.com, 2011). a loyal customer base which shops directly with the
seller, without Groupon in the middle.
Business Model
The idea for Groupon was developed as a solution to Competitors of Groupon
a common complaint mentioned by many people that Living Social
with so many options, sometimes they miss out on Living Social is a social deal website which has
trying various things their cities offer. Groupon commenced its operations in 2007. It is meant for
outgrew the campaign website ThePoint.com in those users who are interested to find deals in the
November 2008. Groupon makes this choice simple local areas. It has presence in over 613 markets in 19
by offering great deals from the best businesses in countries throughout the world and having strength of
local areas. And by leveraging The Point's framework 4500 employees. In order to purchase a Living Social
for collective buying, Groupon is able to offer deals deal a customer has to create a member account or
that make it very difficult to say no. The company sign up with Facebook, and they are then able to
offers one “Groupon” per day in each of the markets browse deals in their local area. Thus, Living Social
it serves. The Groupon works as an assurance is mobilizing social media functions to spread its
contract using The Point's platform: if a business and encourage users to connect their Living
predetermined number of people sign up for the offer, Social and social media accounts.
87
