Groupon Deals May Hurt Your Yelp Ratings

More
yelpgroupon.jpg

New research suggests that there may be a hidden cost for businesses who offer a daily deal of the type popularized by Groupon. In the months after the daily deal, the businesses' Yelp ratings suffer. 


Researchers looked at 16,000 individual Groupon and LivingSocial deals in 20 cities, the number of Facebook likes they received, and the Yelp ratings of the businesses to which they were attached. The absolute drop in ratings is rather small -- an average of 0.12 stars -- but as the researchers point out, that change could affect the sorting of businesses on the site. One mitigating factor could be that Groupon-running businesses get more Yelp reviews, and my perception is that many users of the site tend to use that as a proxy for a location's popularity. In other words, perhaps the small drop in average rating is balanced out by the uptick in ratings.

The wonderful new paper from John Byers and Georgia Zervas from Boston University and Michael Mitzenmacher from Harvard University was featured on Tech Review's arXiv blog. arXiv notes that the work shows "the power of analyses that fuse sales data with social media effects."
Jump to comments
Presented by

Alexis C. Madrigal

Alexis Madrigal is the deputy editor of TheAtlantic.com. He's the author of Powering the Dream: The History and Promise of Green Technology. More

The New York Observer has called Madrigal "for all intents and purposes, the perfect modern reporter." He co-founded Longshot magazine, a high-speed media experiment that garnered attention from The New York Times, The Wall Street Journal, and the BBC. While at Wired.com, he built Wired Science into one of the most popular blogs in the world. The site was nominated for best magazine blog by the MPA and best science website in the 2009 Webby Awards. He also co-founded Haiti ReWired, a groundbreaking community dedicated to the discussion of technology, infrastructure, and the future of Haiti.

He's spoken at Stanford, CalTech, Berkeley, SXSW, E3, and the National Renewable Energy Laboratory, and his writing was anthologized in Best Technology Writing 2010 (Yale University Press).

Madrigal is a visiting scholar at the University of California at Berkeley's Office for the History of Science and Technology. Born in Mexico City, he grew up in the exurbs north of Portland, Oregon, and now lives in Oakland.

Get Today's Top Stories in Your Inbox (preview)

Why Are Americans So Bad at Saving Money?

The US is particularly miserable at putting aside money for the future. Should we blame our paychecks or our psychology?


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

The Death of Film

You'll never hear the whirring sound of a projector again.

Video

How to Hunt With Poison Darts

A Borneo hunter explains one of his tribe's oldest customs: the art of the blowpipe

Video

A Delightful, Pixar-Inspired Cartoon

An action figure and his reluctant sidekick trek across a kitchen in search of treasure.

Video

I Am an Undocumented Immigrant

"I look like a typical young American."

Video

Why Did I Study Physics?

Using hand-drawn cartoons to explain an academic passion

Writers

Up
Down

More in Technology

Just In