Groupon Case Summary

Groupon has overcome much resilience since its inception in 2008. After growing from 400 subscribers to over 200 million (in 2011), Groupon has proved its strategy works. To the consumers, Groupon is a simple process in which they pick a deal they are interested in, enter their credit card information, and then wait to see if the deal tips with other purchasers. This waiting period, part of the fourth stage in the purchase decision process, is one of the most important parts for Groupon’s company. It is during this span of time that consumers must take it upon themselves to share the deal within email, texting, and social media, for if the deal does not reach its minimum purchase requirements, no one will receive the deal. The first step to capturing the interest of a consumer is the recognition of a problem. If an individual is unsure of plans, they potentially could use Groupon’s deal-of-the-day to find something different. Groupon Nearby also helps when in immediate need, based on a smartphone’s location services. The problem with this function is what if an individual is in immediate need of a Groupon service, but there are time restrictions? In the third stage of five-stage
Relying solely on the consumers to spread the word about specific deals may work now, but what can be done to create more hype? If an individual wagers on a Groupon for $25 for $50 at The Capital Grille, there’s no guarantee they will get that Groupon. But what if there were a referral program for the specific deal? It would work much like Google AdSense, except with real people sharing real deals. For instance, for every click an individual gets on their social media share, they would acquire points, which could in time be traded out for another Groupon deal. More points could be acquired for others making purchases under the original consumer’s direct