For Mr/s Respect writer

1. It is difficult to do business with Groupon. About 85% of merchants’ suggestions

are dismissed by Groupon. Why do you think Groupon is so strict and how will

this policy impact the competition?

Groupon is very strict in selecting the deals that will help them make profit despite the tricky

strategy of advertising, which gives its competitors more advantage. From the case it’s evident

that the daily market space is also limited and therefore, Groupon has to choose very carefully

the deals to enter into which will not result in loss for the company. Due to this strictness in

selecting their deals and dismissing of many others, it gives some of its competitors to the

chance to bid for the dismissed deals.

2. Some claim that Groupon is basically an e-mail list that charges advertisers to send out

their coupons (called Groupons). Comment

It’s true that Groupon has an e-mail list whereby it sends adverts to the members in the list and

this is to keep all customers informed on the current offers in the market because its offers

change more often. Apart from the E-mail list, it’s also involved with several important things

that still make businesses willing to pay for its services. One major thing is that it creates

awareness of a certain business hence the business benefits by getting new customers due to the

exposure through the daily e-mailed deals. Customers also enjoy the benefits from Groupon

due to its personalized options to its consumers that are tailored to each subscriber based on the

details of the subscriber’s profile and the past records of their purchases.