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Another Reason to Never Buy Groupon

The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and Chief Technology Officer Jeremy Phillips discuss topics around the investing world.

One of the larger problems with Groupon or LivingSocial is they have no great way of differentiating between new customers and existing customers for any particular business that offers a deal on the platform. That creates a massive problem for vendors, as they could end up significantly discounting their goods or services for regular customers who would have bought at full price anyway. Another problem is the relatively untargeted nature of the deals they offer. 

In Jeremy and Eric's view, these problems have been solved with American Express' new app, called "My Offers." This app uses cardholders' previous spending histories to recognize where they're already regular customers and what types of deals they might respond to. This extremely vendor-friendly offering is practically unmatchable by Groupon or LivingSocial.

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Eric Bleeker and Jeremy Phillips have no positions in the stocks mentioned above. The Motley Fool owns shares of, Apple, and Open Table. Motley Fool newsletter services recommend, American Express, OpenTable, Apple, and Travelzoo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (2) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 18, 2012, at 8:01 AM, nikolotta wrote:

    Was this really an analysis of Groupon or a thinly veiled attempt to push eyeballs to your linked "report" where you lobby for readers to buy Nvidia, a stock which you own? Shame on you.

  • Report this Comment On May 19, 2012, at 2:51 PM, TMFRhino wrote:

    I own NVDA... A stock which I own a nominal sum of (60 shares or so I purchased back in the financial crisis as part of a basket). If you think my ownership has anything to do with trying to "pump" the stock... Well, then this would be the worst financial scam in the history of the world. Shame on me for being so dumb, indeed.

    And yes, we offer a report that pitches a stock our services recommend. We're a business, and we promote our services.That keeps the lights on.

    If you don't like it, I encourage you to go visit another website with coverage on Groupon, there are many.


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