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• Background Note | HBS Case Collection | 2012

  Are Daily Deals Good for Merchants?

  Sunil Gupta, Timothy Keiningham, Ray Weaver and Luke Williams

  In the relatively short time since Groupon was founded, the response to "daily deals"—services that promote businesses by marketing deeply discounted, pre-paid vouchers to an online subscriber base—has by all accounts been spectacular. Our evaluation of daily deals is a cautionary tale for merchants: a substantial percentage are unlikely to benefit, and might well lose money, by using this type of campaign. But a careful analysis of the right data provides clear indicators of both what types of merchants are likeliest to benefit, and which factors that influence profits should receive the most management attention.

  Keywords: marketing; technology; Business Strategy; digital; Marketing Strategy; Web Services Industry;

  Citation:

  Gupta, Sunil, Timothy Keiningham, Ray Weaver, and Luke Williams. "Are Daily Deals Good for Merchants?" Harvard Business School Background Note 513-059, December 2012.

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• Teaching Note | HBS Case Collection | 2012

  Groupon (TN)

  Sunil Gupta, Ray Weaver and Yien Hao Lock

  On November 4, 2011, Groupon, a marketing services company that promoted local businesses by selling deeply discounted vouchers for their products and services, completed its initial public offering that valued the company at $17 billion. Within a year Groupon's share price tumbled dramatically as the novelty for consumers started to wear off and merchants began to question the value of Groupon for their businesses. Is Groupon good for merchants? What are the future prospects for Groupon?

  Keywords: marketing; social networking; media; technology; strategy; Business Growth and Maturation; Marketing Strategy; Marketing; Online Technology; Retail Industry; Service Industry; Technology Industry; North America; United States;

  Citation:

  Gupta, Sunil, Ray Weaver, and Yien Hao Lock. "Groupon (TN)." Harvard Business School Teaching Note 513-046, November 2012.

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• Case | HBS Case Collection | 2012 (Revised from original 2011 version)

  Groupon

  Sunil Gupta, Ray Weaver and Dharmishta Rood

  On November 4, 2011, Groupon, a marketing services company that promoted local businesses by selling deeply discounted vouchers for their products and services, completed its initial public offering that valued the company at $17 billion. Within a year Groupon's share price tumbled dramatically as the novelty for consumers started to wear off and merchants began to question the value of Groupon for their businesses. Is Groupon good for merchants? What are the future prospects for Groupon?

  Keywords: Budgets and Budgeting; Customers; Entrepreneurship; Growth and Development; Marketing Channels; Competitive Strategy; Value Creation;

  Citation:

  Gupta, Sunil, Ray Weaver, and Dharmishta Rood. "Groupon." Harvard Business School Case 511-094, August 2012. (Revised from original March 2011 version.)

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