Groupon Vacation Paper

* Distinctiveness of cruise experience: Cruising is perceived as a more expensive vacation alternative compared to land-based trips, however there is a strong belief among consumers that cruising offers high value for the price consumers pay. Cruising is looked at a full package by offering bundles of travel packages including airfare, dining, itineraries, resort stay, and multiple other amenities. Therefore, a cruise offers a distinctive type of experience that most consumers would choose over various other traveling substitutes. (UCLIA)

The rental car industries as well as other industries within the travel market are challenged with developing a pricing strategy that will maximize profits for the firm. In our analysis of three firms, Hertz, Avis and Budget, our team used qualitative and quantitative methods to develop an understanding of their pricing strategies. We wanted to determine which company has the best overall pricing strategy. Furthermore, these methods helped us develop recommendations involving segmentation and brand differentiation that will help these rental car companies insure greater profitability through pricing that will minimize consumer surplus. Our examination of the three rental car companies and their pricing strategies begins with industry and

being “what customers get from the purchase and use of a product versus what they

Hence, the primarily issue that Groupon should focus is how they can keep the customer loyalty which means the one who satisfy more customer gets more. Since the service predominated in Groupon, it is not the same as merchandize which is a one-time purchase. Service which strongly depends on the customer loyalty, need to maintain a long-term relationship with customers. For example, restaurants provides services to customers for dinning, when customers go to a restaurant that encounter busy, understaffed, ran-out-of-menu or poor quality food, they would not choose to visit for next time. Besides, restaurants acquired good reputation through referral, if current customers are not satisfied with the service, they are unlikely to refer others. Moreover, individualism is a major part of American culture, when Groupon design the offer, customer cannot enjoy the discounted price by themselves unless a specific number of customers all purchase the products within a short period of time. This made the majority of customers frustrated because they have to wait for others to get the deal, which means whether they can get the final discounted products depends on whether Groupon reach the target number. As a result, certain customers will not purchase the products again because on the one hand, they cannot get the discounted deal as the offer described, on the other hand, buying products collectively is not an American

The quality of a product and price is important when a customer is shopping. For example, I work at Kroger in the meat department and most people like shopping at Publix, but they come to Kroger to get their meat because of the quality and our price are slower. So buying furniture sometime is very expensive, so Ikea’s understand this, for this reason they offer their product the low cost. Yes, some customer value low cost over better high quality products. All it come down to, do you want to save money and more people like saving more so going to ikea’s would be a great decision. Going to shop at Whole Food, Publix, than shopping at Kroger doesn’t make you less healthier because it all about how you take care of

To contrast the Customer Benefit Package of Wal-Mart against a luxury clothier for purchasing a suit or a new formal dress, there are many contributing factors. Different people look for different types of benefits

The first example of justifying a value is when getting my car detailed. I am looking at market value, fair value and the utility factor for the services. This service satisfies the need and desire for a clean car to take clients out with, after it was dirtied by a tough winter. I compared prices for similar car detailing services, and asked around for referrals from several people. Of the two companies, one was recommended strongly. I saw examples of each work and agreed with the highly recommended company. In my opinion, the cost at the time was fair value and, compared to other detailers, was market value. The prices were advertised for a year without any price increase. The second example of justifying a value is when purchasing products from Starbucks Coffee. There is a slight influence upon me through the desire of my teenage daughter wanting to visit the coffee shop. With my effective purchasing power, and both our desire of a drink/coffee/treat once and a while, we will go to Starbucks. It is true that Starbucks is a Going Concern, and their prices are fair value compared to Timothies and Tim Hortons. I have joined their rewards program, which enables me to occasionally receive free or discounted drinks, as well as free refills. Starbucks, with the loyalty program, is an investment value to me.

18.   The dimensions of product and service quality are too abstract to be applied to be applied operationally TRUE

For example, Primark is offering to their customers the high quality, at value for money. It is supported by service promised by

With the internet technology, everyone can stay at home for online shopping. What’s more, if you can enjoy daily discounts with all the information, home delivery and 24-hours daily operation, that’s all can be found by buying Groupon. Groupon, the company has successfully captured millions of online consumers throughout the world. The marketing strategy of Groupon captures the consumer behavior. Consumer buying behavior, defined as... “The buying behavior of final consumers, individual and households who buy goods and services for personal”.Groupon consumers mainly responses to:

And trade-offs can arise for three reasons: the aim to deliver consistent value to customer, inflexible different activities

Traditionally, Service quality can be portrayed as the result from client comparison between their assumptions about the service they will use and their insight about the service company. That implies that if the insight recognitions would be higher than the desired the service will be considered as fabulous, if the desires rise to the insight observations the service is viewed as great and if the desires are not met the service will be viewed as awful. For a service to be considered as good the organisation is required for making customers satisfied and service quality should be associated with customer perceptions and expectations. (Carlsson, 2010)

According to Sheth et al (1991), the customer perceived value has five dimensions including functional, conditional, social, emotional, and epistemic values. This value derived from the behaviour of the customer and overall purchasing criteria. Furthermore, this dimension clearly illustrates the ability of the customer to choose whether to continue buying the product or vice versa.

Coupons and discounts are the most widely used promotional tools. However, relatively little research has focussed on value adding promotions. In coupon promotions retailers maintain the original price of the product and it is only coupon holders who are entitled to a discount. As buyers are not subject to a reduction in sales price there is no need for them to adjust their internal reference prices downwards, as is the case with discount promotions. Therefore, coupon promotions should be more attractive than discount promotions in improving the transaction value of the product. However, consumers must keep track of the coupons and produce them at the place of purchase. If consumers are used to utilising coupons then they are likely to have a more positive attitude towards them (Huff and Alden, 1998). Also, if a

Research indicates that Customers’ perceptions toward product/service quality vary considerably for customers with different cultural backgrounds. Accordingly, understanding these differences is important because worldwide travel continues to grow and bring tremendous market opportunities(Shergill & Sun 2004).