A new official study seems to suggest that using daily deals such as Groupon actually damages your online reputation.
The article was published at MarketingVox:
“Transactions in the daily deal market are expected to reach into the billions of dollars within a few years, but the drawbacks to the model – from the merchant’s perspective at least – are beginning to add up. The latest reason to be wary of these deals comes from a study conducted by John Byers and Georgia Zervas from Boston University and Michael Mitzenmacher from Harvard University, Technology Review reports.
It found that a Groupon deal seems to have an adverse impact on reputation as measured by Yelp ratings. “Reviews mentioning either keyword are associated with star ratings that are 10% lower on average than reviews that do not, while the very small fraction of reviews mentioning both keywords are more than 20% lower on average,” they say, according to Technology Review.
The study looked at 16,000 Groupon deals in 20 US cities. It monitored each deal every ten minutes to determine how sales were impacted. It also counted the number of Facebook likes that each deal generated and – as the end finding notes – collected Yelp reviews.”