Groupon May Not Last, Says WUSTL Expert

While Groupon is popular at the moment, the company's business model may not be sustainable over the long term, says a marketing expert at Olin Business School, Washington University in St. Louis. "The only way for businesses to justify the 'loss leader' promotion that Groupon uses to acquire new customers is to hope that the acquired customers return to the business in the future and pay regular, profitable prices," says Seethu Seetharaman, PhD, the W. Patrick McGinnis Professor of Marketing.

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