12/25/2010 05:12 am ET | Updated May 25, 2011

Is Groupon Bad For Business?

Groupon users are encouraged to spread the word about an offer to their friends, often through social networking services like Twitter and Facebook. And companies are attracted by the promise of getting a large influx of new customers, and having those customers do their marketing for them. But a recent study questions how profitable such promotions really are for the businesses that get involved.