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Groupon gets a big edge (and a big part of its value proposition to merchants) by the fact that customers that buy Groupons very often spend up to and beyond the "worth" value of the coupon they buy. The "worth" amount gets fixed in the customers mind and they enjoy getting twice as much (or more) stuff for the same purchase.


One of the big problms with this is that it is going to be very hard to get data on the basket size in store for some of this. This will give you true performance metrics about CPA and other marekting stats because you can see if they are people who spend more or less thanthe average user.

Most likely this is a good experiment to try and boost overall traffic in the back to shool time.

I do agree that it is very exciting for both companies though and am impressed with the GAP's ability to think in the moden web/mobile world.

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