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Groupon effectiveness questioned again . . .

Sympatico finance published an article (attached) questioning the effectiveness of e-coupons.  One of the most interesting quotes says “78% purchase deals because they like saving money.  Only 19% use e-coupons because they want to try a new product or service.”

Also, the use of these deeply discounted coupons means “You’ve taught new customers that either you’re a discounter or your prices are too high to begin with.  The people who pay full price are the ones who keep you in business.

One business owner who had some success with e-coupons in her first year of business says “It’s great if you’re starting out and have a unique service to offer, but I would not want to rely on them.”

Read the full article here.

Posted Monday, October 10th, 2011.