Helping Merchants to Assess the Profitability of Deal-of-the-Day Promotions

2018 ◽  
Vol 48 (3) ◽  
pp. 247-259 ◽  
Author(s):  
Jochen Reiner ◽  
Bernd Skiera
Keyword(s):  
Deal Of The Day

Deal of the Day

2016 ◽  
Vol 58 (1) ◽  
pp. 95-118
Author(s):  
Edward Boon ◽  
Nir Ofek
Keyword(s):  
Cluster Analysis ◽  
Small Group ◽  
Information Overload ◽  
Price Sensitivity ◽  
Purchase Frequency ◽  
Large Group ◽  
The Future ◽  
History Of ◽  
Restaurant Meals ◽  
Deal Of The Day

Deal of the day is a form of e-commerce in which an intermediary allows merchants access to a subscriber list, to promote their offerings at a discount. This study performs a cluster analysis on the purchase history of a deal intermediary, to identify customer segments based on their purchase frequency, price sensitivity and the types of deal they buy. Five segments were identified, including a large group of customers who made one purchase and then stopped buying, a small group of extremely deal-prone subscribers, and a segment that limits their purchases to very few types of product (e.g. restaurant meals or spa treatments). The findings further show that targeting deals to specific customers may be desirable in the future to prevent information overload and ensure loyalty.

Deal of the day at Cherry.ee

2011 ◽  
Vol 1 (3) ◽  
pp. 1-13
Author(s):  
Katri Kerem ◽  
Dietmar Sternad
Keyword(s):  
Social Media ◽  
Strategic Management ◽  
Competitive Advantage ◽  
Business Model ◽  
Strategic Decision ◽  
First Year ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Start Up ◽  
Deal Of The Day

Subject area Marketing, branding, strategic management, online retailing, and entrepreneurship. Study level/applicability Postgraduate courses in: strategic management; marketing management (branding); and entrepreneurship. Case overview The case describes the founding and the first year of an Estonian internet start-up, the “deal-of-the-day” web site Cherry.ee. The focal topic of the case is the analysis of alternative scenarios for the further development of the company after the first year in business: selling the company, entering into a merger with similar businesses, or continuing to develop the brand independently. The case gives an example of creating a new market, introducing a new business model and launching a brand with substantial use of social media marketing. The successful business model was quickly copied by a lot of followers creating a fierce competitive environment and raising a question of sustainability of the competitive advantage. The case provides an opportunity to discuss how to strategically handle the development of a growing start-up company in an increasingly competitive market environment. Expected learning outcomes Understanding the critical success factors and potential pitfalls for an internet start-up; developing skills to critically analyze the concept of sustainable competitive advantage; comprehension of the main factors influencing the strategic decision on whether to follow a growth, cooperation, or exit strategy; and awareness of the relative advantages of online and offline marketing and understanding how social media strategies can be used to build a brand. Supplementary materials Teaching note.

Exploring Deal of the Day: an e-commerce strategy

2020 ◽  
Vol 27 (10) ◽  
pp. 2807-2830
Author(s):  
Achint Nigam ◽  
Prem Prakash Dewani ◽  
Abhishek Behl
Keyword(s):  
United States ◽  
Emerging Economies ◽  
Content Type ◽  
Product Categories ◽  
Developed Economies ◽  
Electronic Product ◽  
Significant Difference ◽  
Data Points ◽  
Deal Of The Day ◽  
Festive Season

PurposeThis paper examines differences in the discounts offered during Deal of the Day (DOD) promotion schemes by online retailers based on product category, festival season and the economic status of a country.Design/methodology/approachIn study 1, the authors conducted three focus group studies and 20 in-depth personal interviews (PIs) to explore consumers' perspectives on DOD. To validate the hypotheses based on the findings of study 1 and collected 515 data points from Amazon.com (313 data points from the United States) and Amazon.in (202 data points from India) in study two. The authors used multinomial linear regression to analyze the data.FindingsA significant difference in savings for buyers on the purchase of electronic product categories as compared to savings made by them on the purchase of non-electronic product categories during DOD promotional schemes. Electronic products get deeper discounts in the US during festival seasons as compared to non-festival seasons during DOD promotional schemes. In emerging economies discounts offered by e-commerce retailers during DOD offers on electronic items are lesser as compared to those offered during DOD offers made in developed economies like United States.Practical implicationsManagers should avoid offering the same products under DOD during the festive season and non-festive season at similar prices in emerging economies as during festivals customers expect more savings over and above the regular savings.Originality/valueDOD is offered every day irrespective of the other promotions on e-commerce platforms to boost sales. This study analyses any significant difference in saving for DOD offered during special sales days in emerging and developed economies.

Beyond the "mobile versus PC" dichotomy: Profiling online shoppers based on device usage

2017 ◽  
pp. 99-121
Author(s):  
Francesca De Canio ◽  
Marco Ieva ◽  
Cristina Ziliani
Keyword(s):  
Cluster Analysis ◽  
Information Search ◽  
Information Searching ◽  
Purchase Frequency ◽  
Usage Patterns ◽  
Online Shoppers ◽  
Consumer Habits ◽  
Benefits And Costs ◽  
Deal Of The Day

Availability of a growing number of devices for information searching and purchasing online is affecting consumer habits and company strategies. This paper investigates device usage patterns in the online Deal of the Day (DoD) shopping process. The study employs a cluster analysis of respondents based on their device usage. Four clusters emerge and are profiled by means of a benefits and costs approach based on demographic and psychographic characteristics. Multi-device behaviours for information search and DoD purchasing and multi-device behaviours are found to be dominant. Smartphone exclusive users display higher purchase frequency than multi-device segments. Tablet and smartphone users are found to be Market Mavens. Several implications for marketers are discussed.

Going Local or Global: The Case of Online Daily Deal Company TicketMonster

2014 ◽  
Vol 18 (02) ◽  
pp. 401-428
Author(s):  
Seongmin Jeon ◽  
Byungjoon Yoo
Keyword(s):  
Market Share ◽  
Rapid Expansion ◽  
The Internet ◽  
International Expansion ◽  
Consumer Awareness ◽  
Strategic Issues ◽  
Social Shopping ◽  
Competitive Products ◽  
Deal Of The Day ◽  
Management Issues

TicketMonster is a deal-of-the-day coupon site which utilizes the Internet and mobile infrastructure to offer deals in Seoul and other cities around Korea on services at restaurants, cafes, spas, and so forth. Following the company's rapid expansion, management made the decision to expand the scope of TicketMonster beyond Korea's borders with the aim of taking on other Asian markets. To this end, TicketMonster acquired Everyday.com.my, the biggest social shopping site in Malaysia. However, it was believed that simply competing in markets across Asia would not enable TicketMonster to claim sufficient market share in light of the international expansion of Groupon and LivingSocial, two online daily deal global giants. Furthermore, competition in the online daily deal sector in Korea had escalated as local, regional and international players vied for consumer awareness and loyalty. On top of an advertising war, competition grew to the point where several sites began selling coupons while knowingly taking a loss by lowering commissions in order to attract competitive products or services for their respective deals and at times paying for the services themselves. In mid-2011, U.S.-based LivingSocial made an offer to buy TicketMonster in order to strengthen its presence in Asia. Considering these changes and challenges, what are the strategic issues regarding TicketMonster and how should the company deal with the offer to deploy its transfer of ownership to LivingSocial? This case will help readers form an opinion on the related management issues and analyses.

Teeth whitening, boot camp, and a brewery tour: a practical analysis of ‘deal of the day’

2012 ◽  
Vol 12 (2) ◽  
pp. 137-144 ◽  
Author(s):  
Edward Boon ◽  
Ria Wiid ◽  
Philip DesAutels
Keyword(s):  
Boot Camp ◽  
Practical Analysis ◽  
Deal Of The Day

“Deal of the day”: An analysis of subscriber purchase behavior

2015 ◽  
Vol 15 (2) ◽  
pp. 105-114 ◽  
Author(s):  
Edward Boon ◽  
Leyland Pitt ◽  
Nir Ofek
Keyword(s):  
Purchase Behavior ◽  
Deal Of The Day

“Deal of the Day” Platforms: What Drives Consumer Loyalty?

2013 ◽  
Vol 5 (3) ◽  
pp. 165-177 ◽  
Author(s):  
Hanna Krasnova ◽  
Natasha F. Veltri ◽  
Klaus Spengler ◽  
Oliver Günther
Keyword(s):  
Consumer Loyalty ◽  
Deal Of The Day
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