Pros And Cons Of Groupon Vs Traditional Coupon

Opportunities for consumers to qualify for volume discounts, developed around the concept of group buy such as what Groupon or LivingSocial offers has high advantages. Small business owners can invest their time, money and business efforts on using networks targets consume and markets are using to increase engagement and active usage. E-coupons has a possible potential of a higher redemption when compared to traditional coupons. Groupon and LivingSocial are alike in many ways, yet different. Groupon’s shift in its core operations comes amid fierce competition in the daily deal coupon business at a time when consumers are growing tired of their e-mail inboxes overflowing with deal offers (Davis, 2014). Both offer deals customers can claim
and purchase, leveraging the collection of information connecting retailers directly with shoppers. While Groupon tends to offer higher percentages of discounts than LivingSocial, however, LivingSocial seems to be more selective about the products it markets and customizes its customers’ interest for what they want. Many times, Groupon ads appears as a pop-up when on the Internet or social media sites.
Groupon is an excellent marketing tool designed to target and give consumers a plethora of saving options.
The only way companies can stay ahead of their competitors and gain economic benefits is to adapt to new trends that are currently a marketing trend associated with the development of personalized consumer relationships (Achadinha, Jama & Nel, 2014, p. 1307). Using coupons as a sales promotion tool, will provide consumers with a discount, resulting in an economic benefit. One of the benefits for consumers who purchase e-coupons offered on sites such as Groupon or LivingSocial, like any other coupon use, consumers will save money, which positively affects consumers’ evaluation of the business and coupon redemption. For the business, Groupon is a strategy that will improve or increase growth in revenue and become more
profitable.
Eye Tunes is a small community business owned by a licensed a cosmetology technician who has been certified to apply lash extensions.
Eye Tunes provides eyebrow sculpturing, threading, shaping and eye lash extensions. This entrepreneur has used Groupon as a source to grow her business since the startup in Clarksville, Tennessee in 2011. When asked why she turned to Groupon as a planned strategy, the owner offered that being new to the area, Groupon was an advantage because of its effectiveness, easy process for customers using technology for access and real time trackability. Getting consumers to redeem e-coupons goes beyond merely developing the coupon, it just as important to understand what drives consumers to accept coupons offers, and redeem it (Achadinha, Jama & Nel, 2014, p. 1308). Many businesses are getting away from the traditional way of coupons, they must keep up with the competition, traditional or e-commerce, and differentiate from other in e-commerce space (Tuten & Solomon, 2013). Eye Tunes decision to use Groupon as a marketing tool to attract customers and offer has been beneficial thus far. Groupon attracts many female clients looking for great daily deals and is the reason many refer friends to businesses like Eye
Tunes.
References
Achadinha, N. M., Jama, L., & Nel, P. (2014). The drivers of consumers’ intention to redeem a push mobile coupon. Behaviour & Information Technology, 33(12), 1306-1316. doi:10.1080/0144929X.2014.883641
Davis, A. (2014). Groupon's Marketplace Fails To Impress Investors, Stock Tumbles 15%. Retrieved from https://www.forbes.com/sites/alexadavis/2014/08/05/groupons-marketplace-fails-to-impress-investors-stock-tumbles-15/?partner=yahootix#3d6eb1a432e7
Tuten, T. L., & Solomon, M. R. (2013). Social Media Marketing. Upper Saddle River, NJ: Prentice Hall.