This study analyzes the digital and mobile commerce market from the perspective of both consumers and small business owners in a particular urban area. Two surveys were conducted, one from a consumer perspective and the second from the small business owners' perspective. The surveys asked about use of and perceptions of Groupon and other mobile coupon deals. Preliminary findings suggest that while consumers are likely to use mobile apps to make purchases and save money, small business owners consider Groupon deals risky and are less likely to use them to help drive sales and attract new customers. The paper concludes with recommendations for business owners to design digital deals that maximize consumer engagement as well as new revenue generation, thus minimizing the risk expressed in the business owner surveys.
JEL classification numbers: M13, M31
Keywords: mobile apps, Groupon, mobile deals, daily deals, digital marketing, small business, entrepreneurship