Essays on Decision Making Analysis in Daily Deal Sites Case Study

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The paper "Decision Making Analysis in Daily Deal Sites" is a good example of a marketing case study.   The acceptance of daily deals sites offering discounted local product or service has been on the rise. According to BIA/Kelsey, the spending of Americans on flash sales, daily deals, and instant deals are expected to hit over $ 4.3 billion in 2015 (Edelman, Jaffe & Kominers 2011, pg. 2). Bargain-a-day websites such as Google Offers, LivingSocial, Groupon and KGB deals provide daily new deals with varying magnitudes. In these sites, consumers click to obtain a coupon good for a deal, which is greatly discounted on a local or national service or product.

In most cases, the offers are valid for one or two days or even less than a day. Boutiques, and bakeries, stores and spas cafes and clothing companies have exploited deal sites to lure new consumers who would not otherwise have considered buying them. Of these deal sites, Groupon has the widest reach and fastest growth with 143 million emails in its universal database and numerous participating merchants in over 40 countries (Hughes & Beukes 2012, pg. 922).

Its rival LivingSocial often gives deals on “ social experiences” like travel destinations and restaurants and is expanding steadily in the UK, the US and Canada. Since Groupon's start in 2008, the consumers purchasing them and the retailers offering the deals have learned many lessons (Hughes & Beukes 2012, pg. 922). Daily deal sites continue creating a different kind of value and they pursue providing the best consumer experience. By offering deals, which are not available everywhere, businesses can stimulate mass consumer demand within a short time period.

This essay assesses the consumers’ choices towards the deals, how the deal sites can influence their marketing in certain regions, and the role of variety seeking in influencing the consumer’ s decision to use the sites. This essay also assesses whether a business can lure customers from a competitor by offering great discounts. How Customers’ learning Choices Affect their Subsequent Decisions of Using Deal a Day Sites Daily deals sites clearly bring benefits to both customers looking for discounts and businesses attempting to reach new customers. People are exploiting daily deals sites to try new places and services, and businesses are productively leveraging them to generate repeat business and connect with their clients beyond one discount.

In most times, satisfaction with deals normally stimulates consumers’ decisions regarding their future purchasing decisions. According to a Consumer Search, Daily-deal sites such as LivingSocial and Groupon and LivingSocial maintain earning buzz (Liu & Sutanto 2012, pg. 84). The experience of great discounts and subsequent savings of money is what motivates these customers to opt for future repeat purchases. According to a survey documented by Tuten and Ashley (201, pg.

16) in their Small ‘ Business Institute Journal, ’ sentiments by customers towards Daily deal sites is decidedly positive, with consumer participation, interest, and participation being high. Businesses are also stimulating repeat visits because of the discounts offered by these sites.   When consumers learn about the idea that they are going to reap benefits if they manage to get their friends to join the daily deal sites, it will affect their subsequent social buying experiences. Energized by collective buying, several daily deal sites comprise social inducements with the offer to stimulate sharing.

For example, Groupon necessitates a set number of participants to buy the deal before it is ‘ on. ’ LivingSocial provides the deal for free to its consumers if they get three of their friends to purchase it. Facebook Deals lays less focus on the deal and more on attracting friends together to the business site to obtain the discount. Once a customer learns that they will earn more discounts by bringing more friends, they will most likely change their decisions to purchase (Norton et, al. 2012, pg. 522).


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