The Groupon paradox
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New research suggests that collective coupon deals are associated with lower average ratings on Yelp.
An analysis by three computer scientists at Harvard University and Boston University showed that while the volume of reviews on Yelp.com increased for businesses that offered a daily deal, any mention of the words “Groupon” or “coupon” coincided with a lower average rating. The study didn’t explain why the Groupon users gave less flattering reviews on Yelp. Business owners often take a cut in profits on daily deals with the promise of growing their customer base. Herein lies the dilemma, as it appears that the Groupon customers are less satisfied overall.
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