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A question of reputation : influence of Groupon deals on Yelp ratings

by Bergh, Hadley


Unheard of even a few years ago, online coupons, or daily deals, are changing consumer habits. Founded in 2008, industry leader Groupon is a multi-billion dollar company that offers consumers discounted goods and services through their mobile application, website, and e-mail marketing campaigns. Yelp is the most popular crowd-sourced online business review application. Previous research suggests that Yelp reviews by customers who used a Groupon deal were lower than when a Groupon deal was not used. This study examines what this phenomenon means for businesses’ reputations over time, specifically how Groupon affects Yelp ratings differently depending on sector. Using Tobit regression models, the results of this study suggest that while most sectors eventually recover from an immediate decrease in ratings following the use of a Groupon deal, health and beauty businesses experience higher ratings in the short term, which decrease over time.


Colorado College Honor Code upheld.

Includes bibliographical references.

Administrative Notes

Colorado College Honor Code upheld.

Copyright restrictions apply.
Colorado College
Digital Origin
born digital
42 pages : illustrations (some color)
Senior Thesis -- Colorado College
Thesis Advisor
Johnson, Daniel
Economics and Business
Degree Name
Degree Type
Bachelor of Arts
Degree Grantor
Colorado College
Date Issued