— SEETHU SEETHARAMAN, professor of marketing at Washington University’s Olin Business School, discussing Groupon customers [via the Washington University in St. Louis Newsroom]

Beyond opining that the typical Groupon customer is likely to be a no-good cheapskate, the professor states that working with Groupon is a “money-losing proposition” for the “vast majority of businesses” offering daily deals. For the business model to be sustainable, Seetharaman says that customers brought in initially via Groupon must return in large numbers after the discounts are gone:

“The only way for businesses to justify the ‘loss leader’ promotion that Groupon uses to acquire new customers is to hope that the acquired customers return to the business in the future and pay regular, profitable prices,” says Seethu Seetharaman, PhD, the W. Patrick McGinnis Professor of Marketing.

“I doubt very much if this is happening,” he says.