The paper "How Groupon Inc Affects Consumer Behaviour " is a perfect example of a case study on e-commerce. The aim of this study is to analyse how Groupon Inc. affects consumer behaviour and understand the operations of the company from customers and business perspectives. Groupon Inc. operates in the service industry and focuses on a new O2O (online to offline) E-commerce. The study focuses on circular or closed-loop marketing and how Groupon implements it in its business operations (Yao, 2005). Therefore, to understand how the study of the behaviour of consumers helped Groupon to expand its operations in the field of e-commerce, there is a need to study the O2O loop theory.
There are also other factors that affect consumer behaviour and they are equally important and needs to be analysed (Ahn, Ryu and Han, 2005). The company profile of Groupon suggests that it mainly caters to customer needs by providing real-time offers and deals on daily basis via emails or any other online methods. Consumers are given offers and discounts on the basis of targeted personal preferences and locations.
Thus, a simplified search process is provided to customers that help them to gather product-related information. Customers prefer to purchase goods and services via the online mode as this requires low investment. Huge discounts are available online which lowers the cost of the product. Consumers also save travelling time and cost. Thus, the consumers apply less time and effort in researching the desired product that needs to be purchased. Therefore, it has been seen that customers prefer the online mode of shopping. In the online to offline service, consumers generally place the order over the internet and their products are delivered through offline sources.
The entire process of e-commerce is vital from the perspective of the company as the customer's satisfaction is essential to be maintained in this form of business operations. The entire process of e-commerce is vital from the perspective of the company, as customers satisfaction is essential to be maintained in this form of business operations (Cheng and Huang, 2013). Groupon’ s effect on customer behaviour Groupon has always taken the initiative to help consumers with decisions related to purchasing.
Consumers are generally attracted by schemes that involve discounts on the price of products. Groupon tries to capture this price discount by offering group coupons. These group coupons are offered through various promotional schemes in the form of the deal of the day (Krasnova, et al, 2013).
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