Abstract

This paper contributes to the service marketing literature with a focus on deal-of-the-day (DoD) website shopping. The work explores drivers of adoption of DoD shopping among young consumers. We show that value conscious consumers are less oriented towards DoD while deal-prone consumers are more likely to purchase DoD. In contrast to previous research, which found that price savings are the main reason for coupon use, our study finds that Enjoyment plays a major role in young consumers’ DoD shopping behaviour. DoD platforms could leverage Enjoyment to create a compelling value proposition for both consumer and merchant attraction and retention.

Highlights

  • The growing prevalence of digital media and tools in marketing has affected companies in recent years (Leeflang et al, 2014)

  • We focus on young consumers – mostly college students and graduates – because they represent a valuable target for DoD platforms, apart from reasons of convenience

  • In contrast to previous research finding that price savings are the main driver for coupon use, our study found that hedonic values play a major role in consumers’ DoD shopping behaviour

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Summary

Introduction

The growing prevalence of digital media and tools in marketing has affected companies in recent years (Leeflang et al, 2014). Consumer goods manufacturers, service providers and retailers make them available online (Barat et al, 2013; Suri et al, 2004). On their website Kroger offer online coupons that can be automatically redeemed when the shopper checks-out at any Kroger store. A relatively new type of online coupon website called “Deal of the Day” (DoD) has emerged (Ardizzone and Mortara, 2014; Krasnova et al, 2013). DoD differ from traditional coupons because they require consumers to pay in advance for services and products in order to receive bigger discounts (Nakhata and Kuo, in press)

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