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The effect of Groupon promotions on Yelp ratings

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Re: The effect of Groupon promotions on Yelp ratings

#3
Interesting data and conclusions in there. And it's not really surprising given what I've learned about Groupon customers from their behavior at brick and mortar businesses owned by some friends here in NYC. They classify Groupon users as demanding+cheap, meaning that they aren't willing to pay full price for much of anything (and unlikely to return unless given a similar deal) and far more demanding (special requests, asking for free extras, etc) than their customers who pay full price. Not one of them will ever do another Groupon promotion.

Re: The effect of Groupon promotions on Yelp ratings

#4
I definitely believe this. I had a bad experience at a restaurant at which I used a Groupon simply because the food took a long time, the servers were constantly rushing around and couldn't attend to us, etc. Eavesdropping a bit, it was clear most of the customers there were using the Groupon and the place wasn't used to that kind of volume.

Re: The effect of Groupon promotions on Yelp ratings

#5

Interesting data and conclusions in there. And it's not really surprising given what I've learned about Groupon customers from their behavior at brick and mortar businesses owned by some friends here in NYC. They classify Groupon users as demanding+cheap, meaning that they aren't willing to pay full price for much of anything (and unlikely to return unless given a similar deal) and far more demanding (special request…

From the opposite perspective, I have found that owners of business treat me as a second class customer when I use a Groupon voucher with them. There is either an automatic assumption that I'm cheap and a less worthy customer, or they have overbooked their services and provide a poor experience.

Maybe the problem is your friends became resentful because they were incapable of handling the promotion, so they blamed the customers to protect their own egos?

Not all of my Groupon experiences have been bad. I did a scuba diving experience, which lead to me doing additional scuba qualifications and experiences with the same group, at full price.

Re: The effect of Groupon promotions on Yelp ratings

#6
post #4

I definitely believe this. I had a bad experience at a restaurant at which I used a Groupon simply because the food took a long time, the servers were constantly rushing around and couldn't attend to us, etc. Eavesdropping a bit, it was clear most of the customers there were using the Groupon and the place wasn't used to that kind of volume.

this. I bought a Groupon once for a small restaurant and among about 12 customers there was just a single one who ordered conventionally. The restaurant was at capacity and was really small but they sold around 8000 Groupons and when I visited a couple months have passed and it was still completely full with Grouponers. Even though it was cheap as hell (18 EUR all you can eat tapas for 2 people) I won't go back there because the food made me sick.

Re: The effect of Groupon promotions on Yelp ratings

#8

Such a plot really needs error bars. It's possible that the difference is not statistically significant.

Error bars on what? The ratings themselves can be measured with perfect accuracy, and the results were averaged over 5000 merchants, so any error in the mean would be too small to see.

Re: The effect of Groupon promotions on Yelp ratings

#9
post #4

I definitely believe this. I had a bad experience at a restaurant at which I used a Groupon simply because the food took a long time, the servers were constantly rushing around and couldn't attend to us, etc. Eavesdropping a bit, it was clear most of the customers there were using the Groupon and the place wasn't used to that kind of volume.

Usually happens during the first and the last week of the promotion. I learned my lesson, and if you time your visit anywhere in-between, you can generally get into the place on a low-volume day.

Re: The effect of Groupon promotions on Yelp ratings

#10
post #8

Such a plot really needs error bars. It's possible that the difference is not statistically significant.

Error bars on what? The ratings themselves can be measured with perfect accuracy, and the results were averaged over 5000 merchants, so any error in the mean would be too small to see.

It's true that the average clearly moved, but the author was trying to make a generalized inference from the average, that there was a structural break in the "true average" insofar as the measured average is just a sample/noisy measurement of the "true average". Therefore, error bars/confidence bars would indicate how likely the structural break in measured outcomes is to reflect a structural break in the underlying "true average."

The volatility/variance comes from the fact that 1. not everyone rates their experience, 2. there's variability in the experience, 3. different people have different expectations or likelihood to rate high/low, etc.

I hope that clarified what I believe was the parent's meaning.

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