Deals Galore at Groupon

Case Study 2
Deals Galore at Groupon
1. What features of contemporary e-commerce does Groupon Now! Utilize?
Groupon Now utilizes
Mobile e-commerce, by providing a mobile app and customers can purchase goods, promotions on the go.
Social e-commerce, customers can share their purchases or refer promotions to their friends using social networking sites, such as Facebook & Twitter.
Local e-commerce, Groupon offers subscribers deals from local businesses.
2. What value does this service provide subscribing merchants? What value does it provide customers?
For Merchants
Groupon traditionally advertises and does e-mail marketing of the business free of cost.
Businesses benefit from immediate revenue generated through sales and the promotions also attract new customers.
Groupon also helps in moving items out of the inventory and selling unutilized services or surplus production. For example, if a health care business has surplus production of vitamins/supplements, they can sell them easily by encouraging promotions in Groupon.
Increase in Clientele - If a customer bought a service/product deal from Groupon and if he/she is satisfied with the service, there is a more possibility that he/she will take the service again in future at a regular price and can also refer it to friends & family.
For Customers
Customers can enjoy the food/services/products for a cheaper price.
Customers are rewarded with referral bonus upon successfully referring a friend to purchase products/services in Groupon.
Groupon also offers goods for lesser prices and free shipping on orders of $14.99 or more.
It also offers initial perks to customers upon the first few purchases or after signing up.

3. What kinds of businesses are most likely to benefit from using Groupon?
Service businesses such as spas and salons and fitness related businesses such as gymnasiums and yoga studios.
Eateries ranging from restaurants to bakeries to coffee cafes.
Merchandise such as clothing, cosmetics, electronics and furniture.
Travel & Leisure Businesses.
Motels can fill their rooms during off-season by using Groupon.
4. Visit Groupon’s Web site and enter your zip code. What kinds of deals are displayed? Would you use Groupon? Why or why not?
There are various deals such as eateries, movies, spas etc.,
Yes, I personally like Groupon because I can enjoy the food/service for cheaper price and it also encourages me in experimenting new things which I wouldn’t have done with the regular prices.
5. Are there any disadvantages to both customers and merchants in using Groupon Now?
Merchants
Groupon pays 50% to the merchant. For example, if a customer purchases a $60 worth promotion for $30, Groupon pays only $15 to the merchant. Effectively, the merchant is selling the product/service at one-fourth the original price.
Groupon does not pay the total amount to the merchant right away. It pays 33% after 7-10 days, 33% after the first month, and 34% after the second month.
If the merchant has sold the product/service in Groupon for one-fourth the regular price, which will be availed by the customer at a later point, there is no way the merchant can make-up for the loss if the product/service has become more expensive during the course of the time.
Customers
Groupon refunds the amount only if the customer cancels it before 7 days of purchase.
There is an expiry date to Groupon promotions. If the customer has not redeemed the Groupon purchase before its expiry, then the customer will have to use only the amount he/she has paid for the purchase.

References
Groupon.com. Retrieved from www.groupon.com
GrouponWorks.com. Retrieved from https://www.grouponworks.com/merchant-resources/FAQs
Ross, D. (2011, July). "How does Groupon work?" HowStuffWorks.com. Retrieved from

References: Groupon.com. Retrieved from www.groupon.com GrouponWorks.com. Retrieved from https://www.grouponworks.com/merchant-resources/FAQs Ross, D. (2011, July). "How does Groupon work?" HowStuffWorks.com. Retrieved from