The team found that for merchants, Groupon cuts both ways: the deals lead to a surge in Yelp reviews from new customers, but they also lead to a higher percentage of negative reviews. John Byers, a College of Arts & Sciences associate professor of computer science, and Georgios Zervas (GRS’11), a postdoctoral fellow at Yale, worked with Michael Mitzenmacher, a professor of computer science at Harvard, to collect a massive amount of Groupon data over six months. It’s a risk that merchants have been taking without any evidence that it pays off-until now. They hope that offering a short-term discount, and giving Groupon half the revenue from the deal, will bring long-term gains: a higher profile and new customers. Merchants who work with Groupon take a risk. Online daily deal sites like Groupon are great for consumers, offering deep discounts on everything from restaurants to sporting events.
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