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Deal of the day: an assessment of a new form of sales promotion
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
2014 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Deal of the day is a new business model that has been adopted by thousands of companies worldwide. For marketers and consumers, deal of the day is a form of sales promotion in which an intermediary manages a list of subscribers, and allows merchants access to promote their offerings at a discount, in exchange for a commission.

However, deal of the day is in some ways different from traditional forms of sales promotion. Deals are bought online and redeemed later, moving the risk of non-redemption from merchant to consumer. Additionally, deals are typically offered by companies in the hospitality sector, while knowledge about sales promotion is primarily based on shopper data for basic goods.

The aim of the first two papers is to learn more about deal of the day. Paper 1 shows that deal of the day is used by companies from various sectors, and that they have many options to restrict purchase and consumption of deals to suit their purpose. Paper 2 finds that most consumers buy only a few deals per year, and that only a small segment buys at a very high frequency.

The next two papers assess the impact that deal of the day has on existing knowledge about how consumers respond to sales promotion. Paper 3 identifies segments within the deal of the day subscriber base that should be targeted individually. Paper 4 determines that high-frequency deal purchasers are knowledgeable and social, and important for both intermediaries and merchants.

This thesis shows that although consumers’ response to deal of the day is similar to what is known about traditional promotion, the wide range of merchants and deals makes it dangerous to generalize about their intentions and behavior.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2014. , xiv, 206 p.
Series
TRITA-IEO, ISSN 1100-7982 ; 2014:07
Keyword [en]
deal of the day, marketing, sales promotion, consumer segmentation, purchase behavior
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:kth:diva-156243OAI: oai:DiVA.org:kth-156243DiVA: diva2:765967
Public defence
2014-12-08, Sal F3, Lindstedtsvägen 26, KTH, Stockholm, 09:00 (English)
Opponent
Supervisors
Note

QC 20141201

Available from: 2014-12-01 Created: 2014-11-25 Last updated: 2014-12-01Bibliographically approved
List of papers
1. Teeth whitening, boot camp, and a brewery tour: A practical analysis of 'deal of the day'
Open this publication in new window or tab >>Teeth whitening, boot camp, and a brewery tour: A practical analysis of 'deal of the day'
2012 (English)In: Journal of Public Affairs, ISSN 1472-3891, E-ISSN 1479-1854, Vol. 12, no 2, 137-144 p.Article in journal (Refereed) Published
Abstract [en]

The deal of the day has become a familiar feature on the online marketing landscape. Most prominent in the crowded space of the discount of the day is the company Groupon. It uses the lens of social media to amplify the reach of its online sales promotions. This paper examines the deal of the day phenomenon by comparing it with more familiar promotional and online marketing approaches such as group buying, e-couponing, and email marketing. It analyzes the content of 847 Groupon deals across 44 US cities in terms of characteristics, scope, and limitations and provides specific insight into the public policy issues that the phenomenon is giving rise to.

Keyword
Daily deal, Deal of the day, Digital coupon, E-commerce, Group buying, e-couponing, Online marketing, Social commerce, Social media
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-98530 (URN)10.1002/pa.1415 (DOI)2-s2.0-84860707384 (Scopus ID)
Note

QC 20120628

Available from: 2012-06-28 Created: 2012-06-27 Last updated: 2017-12-07Bibliographically approved
2. "Deal of the Day": an analysis of subscriber purchase behavior
Open this publication in new window or tab >>"Deal of the Day": an analysis of subscriber purchase behavior
(English)Manuscript (preprint) (Other academic)
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-156592 (URN)
Note

QS 2014

Available from: 2014-12-01 Created: 2014-12-01 Last updated: 2014-12-01Bibliographically approved
3. Deal of the day: analyzing purchase frequency based subscriber segmentation
Open this publication in new window or tab >>Deal of the day: analyzing purchase frequency based subscriber segmentation
(English)Manuscript (preprint) (Other academic)
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-156598 (URN)
Note

QS 2014

Available from: 2014-12-01 Created: 2014-12-01 Last updated: 2014-12-01Bibliographically approved
4. A Qualitative Study of Consumer-Generated Videos about Daily Deal Web sites
Open this publication in new window or tab >>A Qualitative Study of Consumer-Generated Videos about Daily Deal Web sites
2013 (English)In: Psychology & Marketing, ISSN 0742-6046, E-ISSN 1520-6793, Vol. 30, no 10, 843-849 p.Article in journal (Refereed) Published
Abstract [en]

Deal of the day, also known as social couponing, is an e-commerce business model that offers consumers heavily discounted deals on a regular (daily) basis, and gives merchants access to a mailing list of potential new customers in exchange for a commission. There are thousands of deal Web sites worldwide, offering deals from industries as diverse as hospitality, consumer electronics, fashion, and medical services. This study was performed to learn more about consumers' attitude toward deal of the day, and their motivations for purchasing (or not purchasing) daily deals. A systematic qualitative methodology called BASIC IDS was used to analyze 30 consumer-generated YouTube videos about deal Web sites. The analysis showed that many deal-prone consumers can be considered deal mavens; they take effort to learn about different sites and offerings and are eager to share their knowledge with others. Although many of these mavens show hedonistic shopping tendencies, others appear to focus mainly on utility, that is, monetary savings. Consumers with a negative attitude toward deal of the day are often worried about receiving poor service, and some believe that redeeming a deal voucher makes them look cheap.

Keyword
Sales Promotion, Purchase Behavior, Planned Behavior, Coupons, Perspective, Model, Impact
National Category
Applied Psychology Economics and Business
Identifiers
urn:nbn:se:kth:diva-129612 (URN)10.1002/mar.20649 (DOI)000324031800001 ()2-s2.0-84883644163 (Scopus ID)
Note

QC 20131004

Available from: 2013-10-04 Created: 2013-10-03 Last updated: 2017-12-06Bibliographically approved

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