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:
- Brand selection: the advertisements, messages and discounts offered consumers to try something new with lower price for a variety of product, restaurant menu, branded handbag and so on.
- Product service: Groupon offering special deal Groupon and the consumer can select the convenience time for salon appointment or dinning appointment. Furthermore, the company policy “The Groupon Promise” encourage consumer to buy as no question will be asked to return purchased Groupon, this towards the customer satisfaction guarantee.
- Purchasing timing: “a deal of today must not miss” is commonly built into Groupon’s customers’ mind. Offering a huge discount and can easily to purchase via internet or mobile technology, furthermore, the product is home delivery.
- Reference groups: The social influence likes Facebook, Twitter is helping the grow of Groupon. When the responses and commends is positive, many consumers will follow the trends bearing in mind of trying.
The Groupon consumers follow below five-stage purchase decision process:
i. Need recognition
Usually when buyers buy a product they based on the need. A need to try out new ideas for a low...
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...ay of advertisement can capture the attention of users and if the advertisement content is so attractive, the users will further process to Groupon to look at the deals.
d) Enlarging new customers:
A research on the consumer purchase behavior is an estantial needs. The analysis data will provide more information on who, how, and why to buy, and also understanding the competotors marketing strategic plan. Secondly, by analyzes majority subscribers age group, gender, preference items. Sending regularly email on current promotion items and offer them with the 1st trial discount voucher to conver the subscribers into customers. This is the possible way to attact more new customer buying with Grouponand develop Groupon in their mind. If they are happy with their previous purchase from Groupon, the possibility to continue purchase from Groupon has been increased.
People are often deceived by some famous brands, which they will buy as useless commodities to feel they are distinctive. People require brands to experience the feeling of being special. People spend their money to have something from famous brands, like a bag from Coach or Louis Vuitton which they think they need, yet all that is just people’s wants. Steve McKevitt claims that people give more thought on features or brands when they need to buy a product, “It might even be the case that you do need a phone to carry out your work and a car to get around in, but what brand it is and, to a large extent, what features it has are really just want” (McKevitt, 145), which that means people care about brands more than their needs. Having shoes from Louis Vuitton or shoes that cost $30 it is designed for the same use.
First, let’s talk about how Groupon manages their customer and merchant relationships using information technology. Groupon is basically the middleman between merchants and customers. In the beginning, they bring customers in by marketing their deal of the day business. Once a customer is on their website it is hard not to leave from their without a deal. When joining the website, it asks you some questions to get to know your preferences and where you are located. After the customer signs up for the website, Groupon sends out emails to the subscribers. The emails are targeted to where that individual customer live...
Groupon is a social commerce website connecting buyers and sellers with “deal-of-the-day” coupons through emails, apps and social media. Launching in Chicago in 2008, they quickly expanded to New York, Boston and Washington DC. By 2010 the company served over 250 markets in 35 countries. A first mover advantage and a simple business model of linking buyers and sellers while keeping a percentage of the transaction proved successful for Groupon early on, but recent struggles to maintain a competitive advantage have resulted in drastic changes to Groupon’s business model...
Groupon, Inc., offers goods and services from merchants at a discount to consumers. Groupon had priced its initial public offering at $20 a share and opened at $28.00, 40% above the target. Groupon raised $700 million. Groupon's
Advertising generally tries to sell the things that consumers want even if they should not wish for them. Adverting things that consumers do not yearn for is not effective use of the advertiser’s money. A majority of what advertisers sell consists of customer items like food, clothing, cars and services-- things that people desire to have. On the other hand it is believed by some advertising experts that the greatest influence in advertising happens in choosing a brand at the point of sale.
• During the time I worked at Groupon Taiwan, we created our new app, in the first week, there were only few thousand loyal customers that downloaded our app. I set out with an objective to double our app downloads. With a new devised plan, I purchased few prizes for the campaign as a reward for the promotion, and added new solid advertisements to all our social channels with revised target strategies to best suit our audience. Also we started to negotiate with high traffic websites, including three of the biggest portal sites in Taiwan to promote our campaign
Many people would think that marketing is marketing and that there is no difference between marketing between consumers versus businesses, but there is a defined difference. When Groupon markets to consumers they are trying to give the consumer an experience by creating value and discovery. Groupon chooses the businesses that consumers may have never heard of and then features them a discount to try that business. Groupon is marketing to convert the consumer into buying by presenting deals and coupons to entice them to buy. They need to capture the consumer’s attention and interest immediately. Using these tactics “more than 50 million customers continue to trust Groupon to deliver incredible value on things they do every day…” (Groupon, Inc,
Furthermore, I will explain the application of theory relating to me and my purchase. I will also review the marketing activity of the organization where I purchased from. This is to explain how the two theories have been used in the marketing strategy. In addition, recommendations regarding how the marketing strategy could have been improved by applying the 2 buyer behaviour theories are given.
“Websites as Groupon, LivingSocial, DoubleTakeDeals, YourBestDeals, Dealfind, Go Daily Deals, and others have attracted numerous small and medium businesses as an alternative to local advertising that is targeted, controllable, and accountable” (Streitfeld 2011). “Groupon’s sales in 2010 rose to $700 million compared to $30 million in 2009, and the number of its subscribers rose from 3.4 million in 2010 to 83.1 million in 2011. From April 2010 to April of 2011, unique visits to Groupon’s website rose 655.8% and reached 24 million. During the same time, visits to LivingSocial increased 418.4%”.
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
Bringing in innovation in products to reduce choices, hence reducing the fatigue factor, increase utility of the fad & cut down prices.
In today’s competitive world where organizations looking for high profitability and market share, consumers have very important role. Companies are looking for capture consumers in order to get larger market share. For this reason organization developed a number of techniques and tools. One of such tools is consumer behavior which has been come from economic theory. Consumer behavior is mainly studying the factors and situations that can affect purchase decisions of consumers. Consumer behavior is being very important discipline of management sciences which help out to understand of customers’ decision making.
The most popular consumer sales promotions are directly associated with product purchasing. These promotions are intended to enhance the value of a product purchase by either reducing the overall cost of the product for instance get same product but for less money or by adding more benefit to the regular purchase price for example get more for the money.While tying a promotion to an immediate purchase is a major use of consumer sales promotion, it is not the only one. As we noted above, promotion techniques can be used to achieve other objectives such as building brand loyalty or creating product awareness. Consequently, a marketer’s promotional toolbox contains a large variety of consumer
The research on consumer behavior assists the organization recognize and forecast the purchase behavior of the consumers while they are purchasing a product. Thus, the study of consumer behavior helps the marketers not only to understand what consumer's purchase, but helps to understand why they purchase it (Kumar, 2004). There are a lot of elements which can influence the purchase decision of consumers such as social influences, cultural influences, psychological factors and personal factors (Super Professeur, 2011). Understanding these factors helps the company to market the product on right time to the right consumers in order to generate more profits. On the other hand, if the marketers fail to understand these components that might influence consumers, they will fail to convince the consumers to purchase that product or will fail to meet the demands of consumers. However, consumer behavior is one of the stimulating and challenging areas in marketing studies being a human activity focused on the products and services. Thus understanding the behavior of the consumers is a great challenge. Moreover, it is not easy to get a full picture of consumer behavior as customers make plenty of different buying decision every day and they usually do not know exactly what influences their purchase. In short, basing on all
From the billboards on the streets to the flyers in the doors of public restrooms, advertisings occupy our life. Indeed, we all feel annoying when the commercials suddenly interrupt our enjoyable time of watching TV; however how do you make the decision to buy a Toyota or a Honda without watching the commercials of neither of these? Thus, advertising provides us the options of consumption. My other question would be: Can you actually distinguish the difference between a Starbucks coffee and a coffee from an unknown cafe each time when you are lining in the Starbucks? I believe the only clue for us would be the coffee of Starbucks has a green, long-haired female Greek mythological figure in the cup, and the coffee from the unknown cafe has nothing. Therefore, we are influenced by advertisings and the promotions of brands. In the class, we have been introduced the concepts of how the advertising influences the consumers‘ choices and how the brand image plays an important role in consumer behavior. We could notice that the crucial part which could determine the success of one product was whether the consumers had the ability to recognize the brand image. Thus, in the competitive market, advertising could stimulate the promotion of brands and make the product to be standout for the consumer. In my research project, I would like to trace the topic about the effects of advertising and branding on the consumption.