Groupon

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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.

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