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Social shopping promotions from a social merchant's perspective

Author

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  • Lee, In
  • Lee, Kyoochun

Abstract

Taking advantage of Web 2.0's user-participation and social networking capabilities, social shopping intermediaries have emerged as a promising online liaison between merchants and consumers by offering group discount deals to price-sensitive customers and early technology adopters. Our study compares the two most popular types of social merchants—restaurants and healthcare services—in terms of seven key factors that influence a merchant's sales using a Groupon promotion. We find that these two types of social merchants show significantly different characteristics for successful promotions. Based on a new proposed lifetime value model for social shopping promotions, this study also discusses its applicability with an illustration of the model and presents guidelines for social merchants who want to achieve the maximum lifetime value from a social shopping promotion. Finally, we discuss implications of our study for social merchants and social shopping intermediaries.

Suggested Citation

  • Lee, In & Lee, Kyoochun, 2012. "Social shopping promotions from a social merchant's perspective," Business Horizons, Elsevier, vol. 55(5), pages 441-451.
    • Handle: RePEc:eee:bushor:v:55:y:2012:i:5:p:441-451
    DOI: 10.1016/j.bushor.2012.04.001
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    Cited by:

    1. Syrdal, Holly A. & Myers, Susan & Sen, Sandipan & Woodroof, Parker J. & McDowell, William C., 2023. "Influencer marketing and the growth of affiliates: The effects of language features on engagement behavior," Journal of Business Research, Elsevier, vol. 163(C).
    2. Yang, Kiseol & Li, Xiaoshu & Kim, HaeJung & Kim, Young Hoon, 2015. "Social shopping website quality attributes increasing consumer participation, positive eWOM, and co-shopping: The reciprocating role of participation," Journal of Retailing and Consumer Services, Elsevier, vol. 24(C), pages 1-9.
    3. Francesca Magno & Fabiio Cassia & Marta Ugolini, 2014. "L?efficacia delle campagne di social couponing: uno studio tra i merchant di Groupon," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2014(3), pages 41-63.
    4. Branca Barbosa & José Duarte Santos, 2023. "Bibliometric Study on the Social Shopping Concept," Administrative Sciences, MDPI, vol. 13(10), pages 1-21, September.
    5. Marko Budler & Miha Bratec & Katarzyna Barbara Minor & Luka Tomat, 2020. "A business model approach towards the understanding of daily deals within Internet distribution systems," Tourism Economics, , vol. 26(6), pages 976-1000, September.
    6. Lee, In, 2016. "Using Groupon for health and wellness businesses," Business Horizons, Elsevier, vol. 59(4), pages 369-377.

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