Analysis of factors influencing the outcome of Groupon promotion: Case of Russia and Ukraine

Abstract

The goal of this research is to understand the relationships between different factors and outcomes of the Groupon promotion for merchants. First, various factors and outcomes are identified through review of literature. Then a model is derived and hypotheses are tested in order to explain relationships between the variables in this model. Empirical part of the research consists of the archival research of Groupon deals available on Groupon website and the survey of merchants using Groupon services. Findings contain (1) the formula for prediction of the number of coupons sold based on the deal characteristics and (2) predictors of Groupon promotion profitability and intention of the merchant to repeat the deal on Groupon. In the end of the study main results are discussed and recommendations for managers are stated.