What is the one four-letter word that every consumer loves to hear? “Deal”. Plain and simple, consumers are always looking for a deal. Whether it be for dining and entertainment, clothing or groceries, individuals will scour the aisles or the local paper for any sort of penny saving technique they can find. Enter Groupon. Groupon is an innovative technology that connects those frugal individuals with the best deals and the merchants that supply it. Thus expanding the merchant’s business and the consumer’s
Groupon is an internet website company focused on generating revenue by utilizing relationships with merchants to provide consumers with discounts on select items. The goal of the discounted vouchers is to drive additional consumer store traffic and generate revenue for merchants which are shared with Groupon via a predetermined contractual percentage. Groupon generates visibility and exposure with email and social networking to increase consumer spending at specific merchants. Groupon has many features from personalization of product offerings to specific demographics and target segments. In addition, a more defined value proposition allowing merchants an opportunity to showcase their own product offerings on
Groupon is a deal-of-the-day website that is localized to major geographic markets worldwide. Launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. Groupon has over 50 million subscribers across 300 cities in more than 40 countries. The idea for Groupon was created by Andrew Mason who is currently the company’s CEO. [update]Groupon serves more than 150 markets in North America and 100 markets in Europe, Asia and South America and has amassed 60 million registered users. The growth in the future is likely to be at a slower pace, primarily because the company is already one of the largest in the local deals space.
“Groupon! Get your Groupon! Hot off the presses!” It wasn’t too long ago Groupon Inc. was the darling of Wall Street. Institutional and individual investors alike were anxiously anticipating an opportunity to buy shares of the company dubbed by Fast Company as “the most exciting thing to happen to retail since eBay.” That excitement was mirrored on November 4, 2011, Groupon’s first day of trading on the New York Stock Exchange, as the price sky-rocketed to a high of $31.14 compared to its initial $20.00 IPO valuation. However, that unbridled enthusiasm has dwindled since as the stock has plummeted to an all-time low of $3.83 as of Friday November 2, 2012 (Yahoo! Finance 2012). Let’s take a
The five-stage purchase decision process for a typical Groupon user would consist of Problem Recognition: This would be prompted by a Groupon
Founded by Andrew Mason, Groupon stemmed from ‘The Point’, mason’s first website that had been launched in 2007 (Sennett, 2012). The Point was mainly based on social action; that if sufficient people believed that there was an issue that needed solving, they would take responsibility and solve it. Although The Point had failed to reap the expected revenue, it played a significant role in enlightening Mason and other stakeholders on the importance of group action. In that case, in November 2008, Groupon was launched with the aim of achieving a buying power that was collective (Sennett, 2012). On its inception as a website from The Point, Groupon, deploying the group persuasion concept, offered massive discounts via mass purchase. At first, the
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:
2. Local merchants have a mixed reaction about Groupon. What is your opinion- is it good for merchants or not?
This article from the Economist discusses the Groupon, which is a global e-commerce marketplace that offers online coupons for bargains at shops and restaurants. Nowadays, more and more people use Groupon to get some online discounts, and it is very helpful for people to buy a product very cheaply in order to save money. It is undeniable that Groupon created a new market and it is definitely the “first-mover”. According to what we have learned in our international business class, the “Early mover” has many advantages. The “daily deal” idea attracted many customers, and helped Groupon gain the market power and customer loyalty. Because of the first-mover advantage, Groupon had many preemptive opportunities and it developed rapidly. Groupon’s
Groupon is a deal based business that brings customers discounted deals from the businesses. As a result of massive success and the growing competition, the business is faced with the option of either selling to Google or developing an effective marketing strategy for continuing its own. In the due context, the underlying report proposes a marketing plan for successfully dealing with the market challenges (Chatterjee, O”Keeffe, and Streiff, 2012).
Groupon has been the primary source of bargaining leading individuals to try promotional offers at restaurants, stores, and more. Their model works because shoppers are always looking for the best deals to gain more value than they are willing or able to pay, enabling them to become a trusted guide to local businesses. Their success now drives from the shift from searching and cutting for coupons to the digital collection of coupons with a wide array of categories and search capabilities to narrow your options that will best fit your preference. Other ventures such as LivingSocial, Amazon Local, Sweetjack, DealChicken, Half Off Depot, Plum District, and TravelZoo have practiced the same concept as Groupon but have not successfully executed or met the high levels of activity as Groupon. Groupon has been triumphant in their practice as opposed to other similar ventures by offering more deals with better discounts within the user’s area than the other social media marketing sites and the offers continue to expand worldwide. Groupon covers 185 cities while Living Social only acquires 140. According to DigitalBuzz 2011, the Inforgraphics portray Groupon to having 5 million subscribers, 18 million Groupons sold in North America, $700 million saved in North America, a $30 average coupon price, with a 57% average Groupon discount. Joe Pulizzi claims an increase of subscribers to 70 million. Similarly to online shopping, Groupon permits users to store deals in their shopping carts,
Groupon is a business that partners with other businesses to give consumers deals on various products and services (Ferrell, O.C., Hirt, G.A., & Ferrell, L., 2014). The best thing about what groupon does is it forces purchases from groups of people instead of a single person. Because of the type of business Groupon is, it has to communicate with the consumer as well as the businesses. When it comes to the customer, most of them use Groupon for the value of products and services as well as the discovery of new things to buy and do. The type of service Groupon provides makes it hard for customers to look elsewhere for similar benefits. When it comes to marketing its service to customers, Groupon uses social media sites such as Facebook (Ferrell
We are rapidly becoming as large as Google, Facebook, and Groupon. But, we were also started to save Consumers millions of dollars each and every day, but shopping in businesses like yours.
Today, Amazon is confronted with an increasing competition from other major online retailers, such as eBay, Google Books, Best Buy and even Apples’ iTunes. Moreover, websites such as Groupon.com, Eversave.com and Yipit.com could pose an additional threat to Amazon with their daily deal coupons. On the other hand, it appears that Amazon was quick to react to this threat and in 2011 in partnership with LivingSocial.com, Amazon has launched its own local deals website Amazon Local. A recent report on Amazon earnings for the first quarter of 2012 ($17.4 billion in revenue) suggests that it has been successful in competing against their rivals (Haselton, 2012). Nevertheless, Amazon must be extremely cautious about their
Consumers like to save money and will often go out of their way to do so. From seeking out local deals, using coupons, or shopping during specific company sales, it’s a proven fact that saving money is a big plus for consumers. Brian, Solis (2011) studies have shown that 9 out of 10 consumers today use coupons and have become especially popular among the