How has an understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today?

How has an understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today?

Answer:

 “Part of the reason that Groupon has grown as quickly as it has is because we really understand consumer behavior,” explains Julie Mossler, PR & Consumer Marketing Manager at Groupon.  Generally, Groupon consumers follow the same purchase decision pro………….

What is the Groupon Promise?  How does the Groupon Promise affect a consumer’s perceived risk and cognitive dissonance?

Answers:

1. The Groupon Promise.  The Groupon Promise states that any customer can return a Groupon, no questions asked—even if they used it—if they feel like Groupon has let them down.

1. How the Groupon Promise affects consumers.  The Groupon Promise redu……………

 

Describe the five-stage purchase decision process for a typical Groupon user

Answer:

The five-stage purchase process consists of problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior. The purchase decision process applies to a Groupon user as follows:

1. Problem Recognition.  This is triggered by a Groupon deal-of-the-day e-mail offer for something that someone wouldn’t ordinarily do.  Groupon Now presents real-time offers on smartphone apps in response to an immediate need in a specific location.
3.  Information Search.  A Groupon offer can initia……………………………….

What are possible psychological and sociological influences on the Groupon consumer purchase decision process?

 Answer:

 Psychological, sociocultural, and situational factors also influence Groupon users’ purchase behavior.   The recession has increased the importance of personal values such as thriftiness, so deal-prone people who were attracted to websites such as Gilt in fashion and Woot in consumer electronics are also attracted to Groupon.  The typical Groupon user is an 18-34 ye……………………………

What challenges does Groupon face in the future?  What actions would you recommend related to each challenge?

 Answers:

 Groupon faces three challenges in the future:

1. Groupon use and repeat purchases.  Some consumers buy the coupons but never use them, eventually leaving them dissatisfied and unlikely to use Groupon again.  Some consum……………………..
2. Rapid growth.  The company has expanded into Europe, Latin America, Asia, and Russia by acquiring local daily-deal services.  As a result, Groupon currently has more sub……………