Harvard Business School on Groupon

If you are using coupons (or Groupon) to build traffic, here’s some news from  Harvard’s Business School.

They say that ‘discount vouchers are likely to be most effective for businesses that  are relatively unknown and have low marginal costs’.

In other words, Groupon isn’t likely to help a company that people already  know, like The Gap, where the cost of goods (jeans, jackets, etc.) is high.

Discounts may generate awareness and traffic.  So, if you run a deli and aren’t well known, a company like Groupon might help.

To put Groupon in perspective – at Media Fix, for years, we have seen coupons for moms on every ‘mom-focused’ website – often for products with low marginal costs, such as diapers or snack foods.

More here

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