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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