Professional Documents
Culture Documents
Groupon Business Model
Groupon Business Model
On the other side Groupon pitches to merchants located locally by selling them the prospect of
gaining immediate customers as well as guaranteeing promotion to thousands of potential
customers3. These businesses are usually small-scale, and operate locally, selling a wide array of
lifestyle products and services for example, entertainment, health, diet and fitness, accessories,
travel, fashion, dining etc. As the biggest group 40% of the offered promotions are for (mostly
expensive) restaurants.4
The young audience of subscribers looks to Groupon as a city guide, pointing them to
unexplored products or services they may have never tried, or may never have heard about. As
the majority of subscribers are young people, they look forward to discounts as well. Being avid
users of social media like Facebook and Twitter, they spread the word to family and friends.
They primarily enjoy sharing low cost new experiences with their social circle.
14
http://www.grouponworks.com/why-groupon/demographics, 24.5.2011