Daily deal promotions beneficial for certain kinds of startups: study

Friday, May 6, 2011 - 09:30 in Mathematics & Economics

In the first-of-its-kind analysis of Groupon's impact on a startup company, a new Rice University study found that the daily deal promotion was beneficial even though it had no material impact on the company's profits when unredeemed Groupons were not accounted for. When those unredeemed Groupons were factored in, the company had a substantial 30 percent increase in profits.

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