Groupon - A great way to attract transactional customers

Abstract: Although deal-of-the-day-websites such as Groupon are growing at a tremendous rate, we have identified potential problems primarily related to whether customers come back or not which can question the long term existence of these Websites in their current phase. Our overall purpose is to come to a deeper understanding of these problems and to explain them. Hopefully our results will be useful for businesses considering selling through this channel, the Websites themselves but also for investors and others affiliated. We have conducted a quantitative study on the Swedish market where we have surveyed end customers who have used coupons. We concluded that price is the main factor whether customers come back or not and that customers are generally not likely to come back. Also, the customers were to a high degree not quality customers. Moreover, we found that the likeliness of customers coming back to Restaurants & Cafés was higher than for companies in the Beauty & Health-category. Finally, offering discounts significantly increases the likeliness of customers coming back.