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A Qualitative Study of Consumer-Generated Videos about Daily Deal Web sites
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
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.

Place, publisher, year, edition, pages
2013. Vol. 30, no 10, 843-849 p.
Keyword [en]
Sales Promotion, Purchase Behavior, Planned Behavior, Coupons, Perspective, Model, Impact
National Category
Applied Psychology Economics and Business
URN: urn:nbn:se:kth:diva-129612DOI: 10.1002/mar.20649ISI: 000324031800001ScopusID: 2-s2.0-84883644163OAI: diva2:653443

QC 20131004

Available from: 2013-10-04 Created: 2013-10-03 Last updated: 2014-12-01Bibliographically 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.
TRITA-IEO, ISSN 1100-7982 ; 2014:07
deal of the day, marketing, sales promotion, consumer segmentation, purchase behavior
National Category
Social Sciences
urn:nbn:se:kth:diva-156243 (URN)
Public defence
2014-12-08, Sal F3, Lindstedtsvägen 26, KTH, Stockholm, 09:00 (English)

QC 20141201

Available from: 2014-12-01 Created: 2014-11-25 Last updated: 2014-12-01Bibliographically approved

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