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Are Group Buying and Daily Deals on their way out?

November 14th, 2012

Group buying and daily deal sites, such as Groupon and LivingSocial are under scrutiny. In theory they sound like a win-win situation with retailers guaranteed some level of new customers, and consumers finding a cheaper deal. However, evidence suggests group buying does not create brand loyalty and in fact many group buyers never return to a business after they’ve used a voucher. Furthermore, it seems shoppers are tiring of daily deals, with many consumers saying they’ve been treated poorly by staff upon redemption.

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