The BizFilings blog covering business tips and trends.
Small Businesses Reaching More Consumers Through Daily Deal Websites, Survey Says
Published on Jun 21, 2011
Read 'Small Businesses Reaching More Consumers Through Daily Deal Websites, Survey Says' at 'Time to Start Up,' the small business blog by BizFilings.
Small business owners who have resorted to Groupon and other websites offering local daily deals are reaching an ever-increasing number of consumers, according to a new survey.
There has been much argument over the benefits daily deal websites offer to small businesses and whether those benefits outweigh the costs. But the survey, conducted by PriceGrabber, shows that daily deal sites are growing in popularity as consumers become more aware.
"The daily deals sector clearly shows promising signs for long-term growth, but the data reinforces the frustration consumers can feel when a new trend explodes so quickly," said Graham Jones, general manager of PriceGrabber.
Saving money was the main reason why 78 percent of the respondents to the survey who used daily deal websites found them beneficial.
But not everyone is as optimistic about the sustainability of these sites. Utpal Dholakia, associate professor of marketing at Rice's Jones Graduate School of Business told Canada's Globe and Mail that there isn't enough repeat business to make these sites profitable moving forward.
Still, the 44 percent of consumers who responded positively to the PriceGrabber survey show the market is still on the upswing.