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Teeth whitening, boot camp, and a brewery tour: A practical analysis of 'deal of the day'
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
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.

Place, publisher, year, edition, pages
2012. Vol. 12, no 2, 137-144 p.
Keyword [en]
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: urn:nbn:se:kth:diva-98530DOI: 10.1002/pa.1415Scopus ID: 2-s2.0-84860707384OAI: oai:DiVA.org:kth-98530DiVA: diva2:537910
Note

QC 20120628

Available from: 2012-06-28 Created: 2012-06-27 Last updated: 2017-12-07Bibliographically approved
In thesis
1. Deal of the day: an assessment of a new form of sales promotion
Open this publication in new window or tab >>Deal of the day: an assessment of a new form of sales promotion
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
deal of the day, marketing, sales promotion, consumer segmentation, purchase behavior
National Category
Social Sciences
Identifiers
urn:nbn:se:kth:diva-156243 (URN)
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

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