Research on Groupon and Yelp - Computer Science - Boston 2025

The document analyzes the 'Groupon effect' on Yelp ratings, revealing that businesses offering Groupons tend to receive lower average ratings on Yelp. The authors investigate various hypotheses regarding consumer and merchant behavior using a large dataset of Groupon deals and Yelp reviews. They propose that Groupon users may be more critical reviewers, engage in experimentation with new services, or that the reviews from these users reflect a more accurate baseline compared to potentially inflated non-Groupon reviews. The study employs statistical analysis and mathematical modeling to explore these dynamics, ultimately suggesting that both poor business practices and the nature of Groupon users contribute to the observed decline in ratings.