Merchants Can Build Their Own Businesses by Choosing the Right Daily Deal Platforms
Researchers from the University of Maryland and Harvard University analyzed the bargaining process between the daily deal platforms Groupon as well as LivingSocial and merchants to identify the trade-offs made by both parties during the transaction to achieve their goals. While merchants may have less leverage and sacrifice certain net profits for the short term when selling their goods or services on the larger platforms, they can win in the long run by adding new customers and creating the opportunity for future sales to a larger customer base.