Groupon’s business model is based on the theory that everyone loves a great deal. Groupon is a popular “deal of the day” Web site offering discounted gift certificates usable at local or national companies. Each day Groupon e-mails its subscribers discounted offers for goods and services that are targeted by location and personal preferences. Consumers can also access its deals directly through its Web sites and mobile applications.Customers purchase Groupons from the company and redeem them with affiliated merchants. The discounts are huge—usually 50 to 90 percent off. But there’s a catch: A deal becomes available only if a certain
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