In theory, the social media site Groupon is a win-win for consumers and businesses. Shoppers get deep discounts at stores and events, and companies get a massive influx of customers. But there’s a crucial weak link in the chain, a vulnerability faced by any service company that’s offering a promotion: Employees.

If employees at a company using Groupon aren’t happy with the promotion, my research shows, customers may have a bad experience, and the company may obtain no long-term benefit. And many employees aren’t happy when Groupon comes on the scene: They’re the ones serving the meals and waxing the eyebrows of customers who are sometimes less than gracious.

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Publication/Copyright: Harvard Business Review