[michaelbuckbee]

Offering coupons of any kind (Groupon or not) is just another form of marketing. Whether or not it makes sense for a particular business is much more complex: different structures, margins, repeat customers, etc.

So a business "loses" a $1000 with their Groupon deal, they got people into their shop and at least it's a more measurable outcome than most print or radio ads.

[fleitz]

The key absent of measurement is the effect on the business, there is no point to a more measurable loss, in comparison to a less measurable profit.

I don't care to chime in to the debate on whether radio/print/groupon is effective as I think that like most tools it can be used properly or improperly.

[michaelbuckbee]

I'm in agreement with you that the success or failure of the marketing endeavor is execution dependent.

However, I do feel that there is a point to a measurable loss, namely that you know not to do it again. If you spend a $1000 on setting up a Groupon deal and don't make your money back then you very clearly know that it was bad marketing move. If you spend a $1000 on a radio ad it's much more difficult to know what impact it has on your business.