Groupon value: modeling the NPV of a merchant deal

In the post Il Customer LifeTime Value (CLTV) dei Grouponers we  identified the drivers to generate profitable Groupon offers by means of  the Customer Lifetime Value (CLTV) formula. Normally  CLTV measures the effect of a brand new marketing action to a specific...
Does Groupon create value to merchants?

Does Groupon create value to merchants?

Offers Groupon launched by traders produce substantial losses if poorly designed. The powerful advertising through Groupon lets you expand the customer base, but can destroy the profits if a trader were to launch an offer without thinking about the determinants of...