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I don't think that driving huge crowds is actually their business model. The huge crowds overwhelm the merchant and wind up making the promotion a bad deal for

I don't think that driving huge crowds is actually their business model. The huge crowds overwhelm the merchant and wind up making the promotion a bad deal for the merchant. Groupon would do better to drive reasonably sized crowds, consistently to merchants.

gamble 16y ago
It's the crowds that attract merchants to deal with Groupon. I think they tweak the mental association between bodies through the door and success that many small business owners have. Without the promise of traffic (and hope that some of them will come back) Groupon is just a very expensive way to distribute 50%-off coupons.