I am sure you all read recently of the $6 billion bid from Google to the 'group discount local buying' online community called 'Groupon', as in 'Group', 'Coupon'.
- 66% of participating retailers made money from the promotion, even after the steep discounts
- Restaurants are the most likely to not make a profit from the promotion
- Grouponer's behaviour;
- 50% buy over coupon value
- 31% come back a second time to
Dholakia looks at all of the variables he can to determine the best predictor of promotion profitability and finds it is… employee satisfaction.