Chapter 7: TEACHER CASE NOTE
Groupon:
Advertising at Super Bowl XLV (45)
TEACHING NOTE
Introduction
Groupon, an innovative company based in Chicago and the leader in the consumer group
purchase business model, aired a commercial during the Super Bowl Game in 2011 to boost
consumer recognition and sales revenue. Aaron Cooper, VP of Consumer Marketing at
Teaching Objectives
Cultural intelligence (CQ) has become an increasingly critical factor in business decisions. Often
negligence in intercultural communications undermines both the performance and reputation
of companies. This case study will help students develop intercultural communication
competencies with cultural knowledge and mindfulness and integrate them into sound business
decisions. Through the discussions, students should be able to:
1. Identify the ethnocentrism of Groupon and apply the developmental model of
2. Identify and differentiate the cultural aspects of US, Chinese, and Indian/Tibetan
3. Recommend how Groupon should respond to the criticism and how it can repair its
Analysis of the Advertisement
To understand why Groupon’s advertisement would offend both Chinese and Tibetan locals, it
is crucial to know some facts about Tibetan cuisine as well as the historical background of the
disputes between pro-Tibet activists and the Chinese central government. Years of interaction
with Indian and Nepalese cultures have had an influence on Tibetan culture, and India can be
considered a proxy for aspects of Tibetan culture.
It is also important to draw students’ attention to the statement, “Their culture is in jeopardy,”
from the advertisement. The word “jeopardy” could insinuate a cultural invasion by Han, the
major people in China, and/or the authoritarian policies imposed by the Chinese government
on Tibetan locals who cry out for absolute autonomy and freedom. Whatever the
interpretation, it is very likely that Chinese nationals would feel offended since they would
imposed its artificial and subjective understanding to the audience.
Even for a culturally insensitive audience, the tone that Groupon took did not seem genuine
and appeared flippant. It actually weakened the sense of purpose to the audience. The weak
Groupon’s Business Risks and Internal Culture
Groupon was also considering expansion into China. At the time, their ambitious expansion had
led to lower operating and net profit margins for the company. They had spent several millions
of dollars setting up foreign operations and needed them to be successful in the future. China is
a very important market for Groupon, and the rest of the industry, as group buying services are
States. It seems to draw heavily from online humor where anonymity can allow individuals to
post material some might deem offensive without fear of judgment. The individualism of US
culture is magnified in the online world, and Groupon’s ads demonstrate a conviction that they
will play well on more conventional media. The reaction to the ads shows that was not the case
Chinese Cultural Analysis
China is a society that is highly “past–oriented.” History textbooks depict China as the most
prominent nation in the world throughout the past few millennia. Actually, the word “China”
(Zhong Gua) means “Middle Kingdom,” the reference point for all of life. This leads to great
pride in their country (even though it is still classified as a developing nation). In the same way,
Questions
1. If you were given general knowledge about the cultural orientation of people of
American, Indian, and Chinese descent, how would you react to Groupon’s commercial?
2. Compare and contrast the subgroup culture (Groupon) with the culture in the United
Teaching Plan
1. Brief introduction of Groupon and the commercial.
3. Introduce the country cultural orientations (US, China, India).
4. Facilitate a discussion on the cultural orientations at play with specific emphasis on
6. Discuss how Groupon could utilize CQ to respond to this advertisement in a culturally
sensitive fashion, thereby repairing its brand image.
Conclusion
Groupon’s ‘Save the Money’ Super Bowl commercial on the Tibet cuisine has been met with
substantial negative feedback since it was aired. Its ignorance of many cultural issues did not
serve its original “cause” of charity well, and it offended many Americans, not to mention many
Tibetans and Chinese people.
Groupon finally withdrew the commercial on February 11 (five days after its original air
References
1 Ovide, Shira. (April 26, 2012) Groupon must avoid taking “stupid risks,” CEO says. Wall Street
Journal.
2 Hofstede, Geert. (n.d.) What about China? Geert Hofstede website. https://geert-
hofstede.com/china.html.
Authors
Michael Koehler, Shuyuan Jiang, Bradford Chen, and Ammar Zafar