I was reading Debbie Yeh’s blog which featured a post about Groupon, a company that sells discounted items/services over the internet in a form of a certificate. Both my mother and I are Groupon addicts; we are constantly looking for deals that the site has to offer. The website is especially attractive to consumers these days because of the recession, since everyone is trying to find more value for their dollar.
Groupon is particularly successful when it is able to sell discounted products or services that have a well-known name. This is because they are expenditures that individuals are more likely to pursue whether they buy the Groupon or not, which makes the item more appealing. For instance, Groupon’s Vera’s Burger Shack and Quizno’s Sub deals both sold out quickly whereas Groupon’s Verace Pizzeria deal took a longer time to sell out. This also has to do with brand awareness; individuals that aren’t able to recognize a brand as easily are more hesitant to purchase the product or service because they are unsure of how much value it has to them.
Furthermore, Groupon is able to help businesses as well as consumers. Businesses that are not as distinguished are able to showcase their name through the website and, consequently, are given the chance to gain loyal customers.
All in all, Groupon has been able to successfully utilizes technology and social media sites (ie. Facebook) in order to target its market. Groupon has acknowledged the fact that the internet is becoming more and more of our everyday lives and is using it to their advantage to gain sales.
Groupon UK Commercial:
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