Effects of Reputation on Daily Deal Promotions: Evidence from Groupon

Table 1

Description of the model variables.

Symbol	Description
	Outcome variable, which is either ln (voucher sales) or a proxy of customer traffic brought in by the deal
	Deal price
	Percentage price discount of the deal, calculated as 1–(deal price/regular price)
	Average consumer rating displayed on Groupon
	Average consumer rating displayed on Yelp
	Number of reviews displayed on Groupon
	Number of reviews displayed on Yelp
	Promotion duration, which is the number of days for which the deal is available on Groupon
	Dummy variable equal to 1 if the deal is sold out before the promotion ends, and 0 otherwise
	Dummy variable equal to 1 if the voucher must be redeemed within 60 days after purchase, and 0 otherwise
	Dummy variable equal to 1 if the deal promotion was on a weekday, and 0 otherwise
	Dummy variable equal to 1 if the restaurant conducts more than one deal promotions at a time, and 0 otherwise
	Dummy variable equal to 1 if the deal is a designated meal, and 0 otherwise
	City fixed effects
	Normally distributed error term