Is the Daily Deal Social Shopping?: An Empirical Analysis of Customer Panel Data
- Authors
- Song, Minjae; Park, Eunho; Yoo, Byungjoon; Jeon, Seongmin
- Issue Date
- Feb-2016
- Publisher
- ELSEVIER SCIENCE INC
- Keywords
- Social shopping; Online platform; e-Commerce
- Citation
- JOURNAL OF INTERACTIVE MARKETING, v.33, pp.57 - 76
- Journal Title
- JOURNAL OF INTERACTIVE MARKETING
- Volume
- 33
- Start Page
- 57
- End Page
- 76
- URI
- https://scholarworks.bwise.kr/gachon/handle/2020.sw.gachon/8597
- DOI
- 10.1016/j.intmar.2015.12.001
- ISSN
- 1094-9968
- Abstract
- Shortly after Groupon started its business in 2008, selling one deal a day with substantial price discounts, daily-deal sites became new online shopping places for many people. Starting with Groupon, most daily-deal sites required that voucher sales be higher than a predetermined number before deals become active. This feature, known as the "tipping point," was a unique characteristic of the daily-deal business and is identified as one of the most prominent features of social shopping. Most daily-deal sites also required that a redemption period start after a deal was over and be fixed, usually 90 days, presumably to maximize the promotional effect of deals by encouraging rapid voucher redemption. The question remains, however, whether such features actually contributed to the success of the daily-deal industry. Using individual-level panel data from a major daily deal site in Korea, we analyze whether consumers' purchase and redemption behaviors were affected by these features and how consumers changed their behaviors as they continued to purchase and redeem vouchers over time. We find that the presence of the tipping point did not boost voucher sales and likely deterred new customers from buying deals right away. We also find that new customers tended to redeem their vouchers quickly, and this likely caused the small businesses that offered deals to become overwhelmed. It is not surprising, given our findings, that both Groupon and the Korean daily deal site abandoned the use of the tipping point and modified redemption rules. (C) 2015 Direct Marketing Educational Foundation, Inc., dba Marketing EDGE.
- Files in This Item
- There are no files associated with this item.
- Appears in
Collections - 경영대학 > 경영학부(글로벌경영학) > 1. Journal Articles
![qrcode](https://api.qrserver.com/v1/create-qr-code/?size=55x55&data=https://scholarworks.bwise.kr/gachon/handle/2020.sw.gachon/8597)
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.