Groupon

AAA

DEFINITION of 'Groupon'

A special type of coupon website that is offers group deals to a group of consumers. Groupons attempt to tap into the power of collective purchasing by offering a substantial discount, such as half off, to a group of people if they will buy a particular product or service. Many restaurants and other retailers use groupons in an effort to lure groups of customers into their establishments.

INVESTOPEDIA EXPLAINS 'Groupon'

Groupons can offer discounts on a meal or other amenity for perhaps a group of 10 or 12. They frequently circulate via email or social sites such as Facebook. Groupon allows users to see the available deals of the day, and purchase the corresponding coupon.

RELATED TERMS
  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon ...
  2. Consumer Spending

    The amount of money spent by households in an economy. The spending ...
  3. Cash Discount

    An incentive that a seller offers to a buyer in return for paying ...
  4. Discount

    The condition of the price of a bond that is lower than par. ...
  5. Coupon Pass

    The purchase of treasury notes or bonds from dealers, by the ...
  6. Transaction Authentication Number ...

    A one-time code used in the processing of online transactions.
RELATED FAQS
  1. How can I invest in electronic retailing (e-tailing)?

    Electronic retail is one of the fastest growing segments of the economy. Every year, more people are choosing to purchase ... Read Full Answer >>
  2. What countries represent the largest portion of the global retail sector?

    The United States and China are the world's largest and second-largest retail markets, respectively, by total retail sales. ... Read Full Answer >>
  3. How has electronic retailing (e-tailing) changed the consumer discretionary goods ...

    Electronic retailing has changed the consumer discretionary goods sector by increasing price transparency and product information. ... Read Full Answer >>
  4. How does stock evaluation of an electronic retailing (e-tailing) business differ ...

    Stock evaluations of electronic retailers differ from brick-and-mortar businesses in that e-tailers have higher growth rates. ... Read Full Answer >>
  5. What is the correlation between a coupon rate and the convexity of a given bond?

    Generally speaking, convexity decreases as yields increase (geometrically, the yield curve tends to flatten at higher yields). ... Read Full Answer >>
  6. Who are Nordstrom's (JWN) main competitors?

    Nordstrom (JWN) is a high-end retail sales department store offering fashion, shoes and accessories for men, women and children. ... Read Full Answer >>
Related Articles
  1. Personal Finance

    Hidden Costs Of Product Rebates

    These cash incentives lure in consumers, who are often unable to collect on the deal.
  2. Budgeting

    5 Ways To Control Emotional Spending

    Follow these five simple steps to keep your spending under control.
  3. Economics

    Understanding The Consumer Confidence Index

    We look at this closely watched economic indicator to see what it means and how it's calculated.
  4. Options & Futures

    The Consumer Price Index: A Friend To Investors

    As a measure of inflation, this index can help you make key financial decisions.
  5. Economics

    What You Should Know About Inflation

    Find out how this figure relates to your investment portfolio.
  6. Budgeting

    Save Without Sacrifice

    Don't sacrifice your life for your savings - get out there and have fun!
  7. Personal Finance

    How Express Scripts Makes Money

    The pharmacy benefit manager claims to lower prescription drug costs for consumers, medical providers, and health insurance companies and makes a tidy profit along the way.
  8. Stock Analysis

    Will Jet.com Revolutionize Shopping?

    Jet.com has arrived and will look to steal market share from Amazon over the next several years. Will it be successful?
  9. Personal Finance

    Why Best Buy Failed in China

    Best Buy entered China with much fanfare in 2006. The Minnesota-based retailer exited quietly last year. What went wrong?
  10. Personal Finance

    Don't Underestimate Kroger's Retail Power

    The grocery chain Kroger has been growing stronger thanks to strategies such as holding down costs, acquisitions, and a focus on convenience.

You May Also Like

Hot Definitions
  1. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  2. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  3. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  4. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  5. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  6. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!