---
id: "entity-groupon"
type: "entity"
entityType: "organization"
canonicalName: "Groupon"
aliases: ["\\\"Groupon", "Inc.\\\""]
source_timestamps: ["§ Avoid These Common Mistakes"]
tags: ["case-study", "business-model-failure"]
related: ["contrarian-groupon-fallacy"]
sources: ["commercial"]
sourceVaultSlug: "hbr-seg-commercial"
originDay: 5
articleStem: "hbr-ext-22-art-of-discounting"
sourceUrl: "https://hbr.org/2026/05/the-art-of-discounting"
sourceTitle: "The Art of Discounting"
---
# Groupon

Used as a **cautionary tale** for the fallacy that discount buyers will convert into full-price buyers. Mohammed notes Groupon's stock fell from a high of **$523 to the $12–$16 range**, reflecting the failure of that premise — the deal-seeking customer base largely kept deal-seeking. This is the concrete anchor for [[contrarian-groupon-fallacy]].

**Verification note (enrichment):** in the supplied source set, Groupon functions mainly as a *strategic warning* about discount-led acquisition rather than a fully validated financial case study.