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The Groupon Effect on Yelp Ratings: A Root Cause Analysis [article]

John W. Byers, Michael Mitzenmacher, Georgios Zervas
2012 arXiv   pre-print
In our prior work we observed that a negative side effect for merchants using Groupons is that, on average, their Yelp ratings decline significantly.  ...  We suggest an additional novel hypothesis: reviews from Groupon subscribers are lower on average because such reviews correspond to real, unbiased customers, while the body of reviews on Yelp contain some  ...  The Groupon Effect on Yelp Ratings: A Root Cause Analysis X:7 Review arrival rank 0 20 40 60 80 100 ★★★☆☆ ★★★★☆ Yelp rating (a) Sequential decline of Yelp ratings.  ... 
arXiv:1202.2369v1 fatcat:aflhfwofirf5vizv4lqznvfqfm

The Groupon Effect on Yelp Ratings: A Root Cause Analysis

John Byers, Michael Mitzenmacher, Georgios Zervas
2012 Social Science Research Network  
In our prior work we observed that a negative side effect for merchants selling Groupons is that, on average, their Yelp ratings decline significantly.  ...  We suggest an additional novel hypothesis: reviews from Groupon users are lower on average because such reviews correspond to real, unbiased customers, while the body of reviews on Yelp contain some fraction  ...  THE GROUPON EFFECT: A ROOT CAUSE ANALYSIS We now investigate why these marked discontinuities occur.  ... 
doi:10.2139/ssrn.2560825 fatcat:3wfl5h7scvgmpg3umydqitp52e

The groupon effect on yelp ratings

John W. Byers, Michael Mitzenmacher, Georgios Zervas
2012 Proceedings of the 13th ACM Conference on Electronic Commerce - EC '12  
In our prior work we observed that a negative side effect for merchants selling Groupons is that, on average, their Yelp ratings decline significantly.  ...  We suggest an additional novel hypothesis: reviews from Groupon users are lower on average because such reviews correspond to real, unbiased customers, while the body of reviews on Yelp contain some fraction  ...  THE GROUPON EFFECT: A ROOT CAUSE ANALYSIS We now investigate why these marked discontinuities occur.  ... 
doi:10.1145/2229012.2229034 dblp:conf/sigecom/ByersMZ12 fatcat:a22ccyqztfagzf2h2ncr3dk77y

The daily deals marketplace

John W. Byers, Michael Mitzenmacher, Georgios Zervas
2012 ACM SIGecom Exchanges  
We discuss the broader implications of our methodology and the managerial implications that follow from our root cause analysis, both for daily deals merchants and daily deals services, that could lead  ...  with today's offers, and elaborated the root causes underlying this behavior.  ...  Yelp ratings and review volumes for Groupon merchants, centered on Groupon offer day.  ... 
doi:10.1145/2509002.2509009 fatcat:3zwk2acsbfbidpvvivgngnsmte

Does a Daily Deal Promotion Signal a Distressed Business? An Empirical Investigation of Small Business Survival

Ayman Farahat, Nesreen K. Ahmed, Uptal Dholakia
2012 Social Science Research Network  
As the industry matures, there are many questions regarding the impact of daily deals on the marketplace.  ...  Our analysis consists of the survival of 985 small businesses that offered daily deals between January and July 2011 in the city of Chicago.  ...  For example, they illustrated a poor business behavior, and Groupon user experimentation to be possible root causes of the Groupon effect.  ... 
doi:10.2139/ssrn.2171901 fatcat:a6xh7ihgs5h4bitzp4rbcta3xa

Does a Daily Deal Promotion Signal a Distressed Business? An Empirical Investigation of Small Business Survival [article]

Ayman Farahat and Nesreen Ahmed and Utpal Dholakia
2012 arXiv   pre-print
As the industry matures, there are many questions regarding the impact of daily deals on the marketplace.  ...  Our analysis consists of the survival of 985 small businesses that offered daily deals between January and July 2011 in the city of Chicago.  ...  For example, they illustrated a poor business behavior, and Groupon user experimentation to be possible root causes of the Groupon effect.  ... 
arXiv:1211.1694v1 fatcat:ux32tbbz7jfzbpvimi66t3elgi

Behind the Review Curtain: Decomposition of Online Consumer Ratings in Peer-to-Peer Markets

Daniel Kaimann
2020 Sustainability  
However, we also show that the interaction of female drivers and their attitude towards pets has a significantly negative effect on average ratings.  ...  We decompose the online ratings by focusing on the customer's decision-making process in a leading peer-to-peer ridesharing platform.  ...  Other studies on peer-to-peer markets focus their analysis on online services such as AirBnB, Yelp, and Groupon [14] .  ... 
doi:10.3390/su12156185 fatcat:j2rwluful5f5pg23rd72gljlsi

When Discounts Hurt Sales: The Case of Daily-Deal Markets

Zike Cao, Kai-Lung Hui, Hong Xu
2018 Information systems research  
Furthermore, it suggests the existence of a "threshold", viz. the negative effect on sales is present only when the discount is sufficiently high.  ...  A one-percent increase in a deal's discount decreases sales by 0.035-0.256 percent.  ...  Hence, a good solution should address the root of the problem, i.e., concern on product quality. The analysis of Groupon goods in Section 4.6 and Table 8 , column (1) provides useful insights.  ... 
doi:10.1287/isre.2017.0772 fatcat:i7ujlbojkbcqpbnrzcdde2gcee

Measuring Effects of Observational Learning and Social-Network Word-of-Mouth (WOM) on the Sales of Daily-Deal Vouchers

Xitong Li, Lynn Wu
2013 2013 46th Hawaii International Conference on System Sciences  
The findings indicate that while both mechanisms have a significantly positive association with voucher sales, the effect is stronger for Facebook-mediated WOM than for observational learning.  ...  We find that one Facebook Like on a deal, on average, is associated with two additional voucher sales and thus an increase of $215 in revenue.  ...  Byers and Mitzenmacher (2012) empirically show that the Yelp ratings of many merchants have decreased after a one-time Groupon promotion and conduct a root cause analysis to explain such phenomenon [  ... 
doi:10.1109/hicss.2013.397 dblp:conf/hicss/LiW13 fatcat:a5x6smu755fhdekfpnby6ck2wm

Context-Aware Deal Size Prediction [chapter]

Anisio Lacerda, Adriano Veloso, Rodrygo L. T. Santos, Nivio Ziviani
2014 Lecture Notes in Computer Science  
Existing solutions for the deal size prediction problem focus on one deal at a time, neglecting the existence of similar deals in the catalog.  ...  Daily deals sites, such as Groupon and LivingSocial, attract millions of customers in the hunt for products and services at substantially reduced prices (i.e., deals).  ...  Acknowledgements We thank the partial support given by the Brazilian National Institute of Science and Technology for the Web (grant MCT-CNPq 573871/2008-6) and authors' individual grants and scholarships  ... 
doi:10.1007/978-3-319-11918-2_25 fatcat:lfruizlcq5b6bcbw2qeefwq4du

Group Power: Discourses of Consumer Power and Surveillance in Group Buying Websites

Nora Draper
2012 Surveillance & Society  
This paper explores the tension between consumer power and surveillance through an analysis of group buying websites.  ...  Through an examination of available promotional materials, websites and privacy policies, as well as interviews with representatives from group coupon companies, this article outlines a number of concerns  ...  The author would like to thank the coordinators and participants at the Cyber Surveillance in Everyday Life conference, as well as the anonymous reviewers for their comments and feedback.  ... 
doi:10.24908/ss.v9i4.4343 fatcat:dkh2xwqw3zgbznw2wcu4n5uddm

"Deal of the Day" Platforms: What Drives Consumer Loyalty?

Hanna Krasnova, Natasha F. Veltri, Klaus Spengler, Oliver Günther
2013 Business & Information Systems Engineering  
These negative experiences are then reflected in plummeting online ratings, as dissatisfied users report their negative experiences on review platforms like Yelp (Byers et al. 2012) .  ...  has made evident. 36.9 million customers actively purchase deals on Groupon -the leading DoD platform (Groupon 2012) .  ... 
doi:10.1007/s12599-013-0268-2 fatcat:64kw5h7bezeidnaroj7eje42li

Do We Need Help Using Yelp? Regulating Advertising on Mediated Reputation Systems

David Friedman
2017 Michigan Journal of Law Reform  
Consumers expecting to access this authentic peer information must also confront a persuasive message. The revenue lifeblood for these platforms comes from the very businesses under peer review.  ...  They are omnipresent, carried everywhere on mobile devices, and used by consumers ready to transact. Though this information is valuable, a troubling conflict emerges in its presentation.  ...  (manuscript at 1) (presenting a thorough background and analysis of the new law).  ... 
doi:10.36646/mjlr.51.1.do fatcat:z5j7fddzzrcurk7htmmaid2foe

"Failures" to be celebrated: an analysis of major pivots of software startups

Sohaib Shahid Bajwa, Xiaofeng Wang, Anh Nguyen Duc, Pekka Abrahamsson
2016 Empirical Software Engineering  
A pivot is the strategic change of a business concept, product or the different elements of a business model.  ...  Meanwhile it provides practical knowledge to software startups, which they can utilize to guide their effective decisions on pivoting  ...  Groupon initially started as 'The Point': social campaigns to collect fund for good causes. Campaigns were only successful when a certain tipping point was reached.  ... 
doi:10.1007/s10664-016-9458-0 fatcat:cpyl3d4nkrfmnmucoh6dsykdta

Digital Entrepreneurship and Digital Business [chapter]

2021 Digital Entrepreneurship  
The report is a 50 page analysis based on data from 650+ web startups. The report was coauthored by Berkeley & Stanford faculty members.  ...  The goal of the report is to lay the foundation for a new framework fosr assessing startups more effectively by measuring the thresholds and milestones of development that Internet startups move through  ...  Challenges like Problem Solution Fit, Product Market Fit, and Feature Development are more actionable challenges that treat the root cause of the lack of customers.  ... 
doi:10.1017/9781108979917.002 fatcat:7rm2fahla5afjdya2znedh3vym
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