Groupon: the secret psychology

Guy Clapperton
Groupon
Groupon

Researchers in Canada's University of Toronto have worked out just how Groupon and other social buying sites work - it's as basic as herd mentality, in which we feel increasing pressure to buy stuff as more people join in. According to the University's Rotman School of Management this is behind the success of Groupon, Living Social and all of the other group buying schemes which have been so successful lately.