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Deal is on! Why people buy from daily deal websites

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  • Parsons, Andrew G.
  • Ballantine, Paul W.
  • Ali, Ashleigh
  • Grey, Hannah

Abstract

We present two studies examining daily deal websites. In the first, we see whether revealing deal size influences choice, and consider the effect of desire for conformity/uniqueness. In the second, we determine the impact discounting levels have on quality perceptions and purchase likelihood, while considering the influence of brand familiarity and offer type. We find the bandwagon/snob effect can influence purchase likelihood. The results also suggest that heavy discounts have a negative impact on quality perceptions, and that brand familiarity and offer type may affect quality perceptions and purchase likelihood. Retailers seeking brand exposure should act cautiously regarding discount levels, and exclusive brands may not be suitable.

Suggested Citation

  • Parsons, Andrew G. & Ballantine, Paul W. & Ali, Ashleigh & Grey, Hannah, 2014. "Deal is on! Why people buy from daily deal websites," Journal of Retailing and Consumer Services, Elsevier, vol. 21(1), pages 37-42.
    • Handle: RePEc:eee:joreco:v:21:y:2014:i:1:p:37-42
    DOI: 10.1016/j.jretconser.2013.07.003
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    Cited by:

    1. Chaouali, Walid & Ben Yahia, Imene & Souiden, Nizar, 2016. "The interplay of counter-conformity motivation, social influence, and trust in customers' intention to adopt Internet banking services: The case of an emerging country," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 209-218.
    2. Carlson, Jeffrey R. & Kukar-Kinney, Monika, 2018. "Investigating discounting of discounts in an online context: The mediating effect of discount credibility and moderating effect of online daily deal promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 153-160.
    3. Bindra, Sunali & Sharma, Deepika & Parameswar, Nakul & Dhir, Sanjay & Paul, Justin, 2022. "Bandwagon effect revisited: A systematic review to develop future research agenda," Journal of Business Research, Elsevier, vol. 143(C), pages 305-317.
    4. Frederick Ng & Claire Cui & Julie Harrison, 2018. "Minding your Ts and Cs: How do rate fences affect restaurant deal promotion outcomes?," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(3), pages 166-181, June.
    5. Ya-Ling Chiu & Yuan-Teng Hsu & Xiaoyu Mao & Jying-Nan Wang, 2021. "An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers," SAGE Open, , vol. 11(2), pages 21582440211, June.
    6. 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.
    7. Kim, Namil & Kim, Wonjoon, 2018. "Do your social media lead you to make social deal purchases? Consumer-generated social referrals for sales via social commerce," International Journal of Information Management, Elsevier, vol. 39(C), pages 38-48.
    8. Ieva, M. & De Canio, F. & Ziliani, C., 2018. "Daily deal shoppers: What drives social couponing?," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 299-303.
    9. Besharat, Ali & Nardini, Gia & Roggeveen, Anne L., 2021. "Online daily coupons: Understanding how prepayment impacts spending at redemption," Journal of Business Research, Elsevier, vol. 127(C), pages 364-372.
    10. Tomohiro Ando, 2018. "Merchant selection and pricing strategy for a platform firm in the online group buying market," Annals of Operations Research, Springer, vol. 263(1), pages 209-230, April.
    11. Sun, Shuxiao & Zheng, Xiaona & Sun, Luping, 2020. "Multi-period pricing in the presence of competition and social influence," International Journal of Production Economics, Elsevier, vol. 227(C).
    12. Francesca De Canio & Marco Ieva & Cristina Ziliani, 2017. "Beyond the "mobile versus PC" dichotomy: Profiling online shoppers based on device usage," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2017(2), pages 99-121.
    13. Davis, Robert & Piven, Inna & Breazeale, Michael, 2014. "Conceptualizing the brand in social media community: The five sources model," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 468-481.
    14. Xia, Feihong & Chatterjee, Rabikar & Venkatesh, R., 2022. "Clinching the deal: An empirical study of the drivers of diffusion of daily deals," Journal of Business Research, Elsevier, vol. 149(C), pages 824-832.
    15. Islam, Tahir & Pitafi, Abdul Hameed & Arya, Vikas & Wang, Ying & Akhtar, Naeem & Mubarik, Shujaat & Xiaobei, Liang, 2021. "Panic buying in the COVID-19 pandemic: A multi-country examination," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    16. Nakhata, Chinintorn & Kuo, Hsiao-Ching, 2017. "Consumer avoidance of specially priced items during social coupon redemption," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 287-293.

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