Groupon May Hurt Businesses’ Reputations

Sites like Groupon, which offer discounts to customers, are everywhere these days. Everyone from dance studios to upscale restaurants seem to be have deals on these sites, but you may want to think twice before offering a coupon for your business.

A new study by researchers at Harvard University and Boston University reports that promotions on sites like Groupon can damage a company’s reputation.  The study examined the correlation between Yelp reviews and Groupon deals.  Before offering a deal on Groupon the average Yelp rating of the businesses in the study was 3.71 stars.  After running a promotion on Groupon the average rating dropped to 3.59 stars.

The study did not indicate why businesses that use Groupon often receive lower ratings.  Groupon and other sites offering discounts on goods and services seem like a great marketing tool, but this new study suggests promotions on these sites may hurt businesses’ reputation.

Advertisements

About BizTV

BizTV is the home for your business. Whether you're an entrepreneur, small business owner or just managing your family's assets, BizTV can help. Find the resources you need to manage your money, start your latest venture or grow your business. BizTV, It’s Your Biz!

Posted on September 19, 2011, in Uncategorized. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: