Research Article

DRIVERS OF REPEAT PURCHASE AND WORD-OF-MOUTH FOR GROUPON MERCHANTS

June 14, 2017
EN TR

DRIVERS OF REPEAT PURCHASE AND WORD-OF-MOUTH FOR GROUPON MERCHANTS

Abstract

Daily deal site companies such as Groupon offer coupons for services and products with deep discounts, a practice that typically ends up in a loss of revenue for the participating merchants. Thus, the key question for long-term viability is whether daily deal consumers repeat purchase from and/or generate positive word-of-mouth for the merchants. This research investigates the deal, merchant and consumer characteristics that influence the initial purchase of the deal, the repurchase likelihood of the service at different price levels and the word-of-mouth behavior of consumers in an experimental setting with 960 participants. The results reveal that when consumers have high satisfaction, merchants are likely to get (1) more repeat purchase when they give a moderate (vs. low or high) initial discount, and (2) more word-of-mouth occurs when merchants are physically close (vs. distant) to the consumers. Furthermore, consumers’ coupon proneness (but not price consciousness) increases both daily deal purchase and after-deal word-of-mouth. Interestingly, consumers who are more concerned with price as a cue for quality are more willing to repurchase at full price. These findings give merchants specific recommendations as to how to price and target their deals to improve the likelihood of repeat purchase and WOM generation.

Keywords

References

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Details

Primary Language

Turkish

Subjects

-

Journal Section

Research Article

Authors

Ela Arı
Türkiye

Publication Date

June 14, 2017

Submission Date

January 10, 2017

Acceptance Date

March 14, 2017

Published in Issue

Year 2017

APA
Arı, E. (2017). GROUPON SATICILARI IÇIN TEKRAR SATIN ALMA VE AĞIZDAN-AĞIZA PAZARLAMAYI YÖNLENDIREN ETKENLER. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 59-85. https://izlik.org/JA32XN25FR
AMA
1.Arı E. GROUPON SATICILARI IÇIN TEKRAR SATIN ALMA VE AĞIZDAN-AĞIZA PAZARLAMAYI YÖNLENDIREN ETKENLER. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. Published online June 1, 2017:59-85. https://izlik.org/JA32XN25FR
Chicago
Arı, Ela. 2017. “GROUPON SATICILARI IÇIN TEKRAR SATIN ALMA VE AĞIZDAN-AĞIZA PAZARLAMAYI YÖNLENDIREN ETKENLER”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, June 1, 59-85. https://izlik.org/JA32XN25FR.
EndNote
Arı E (June 1, 2017) GROUPON SATICILARI IÇIN TEKRAR SATIN ALMA VE AĞIZDAN-AĞIZA PAZARLAMAYI YÖNLENDIREN ETKENLER. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi 59–85.
IEEE
[1]E. Arı, “GROUPON SATICILARI IÇIN TEKRAR SATIN ALMA VE AĞIZDAN-AĞIZA PAZARLAMAYI YÖNLENDIREN ETKENLER”, Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, pp. 59–85, June 2017, [Online]. Available: https://izlik.org/JA32XN25FR
ISNAD
Arı, Ela. “GROUPON SATICILARI IÇIN TEKRAR SATIN ALMA VE AĞIZDAN-AĞIZA PAZARLAMAYI YÖNLENDIREN ETKENLER”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. June 1, 2017. 59-85. https://izlik.org/JA32XN25FR.
JAMA
1.Arı E. GROUPON SATICILARI IÇIN TEKRAR SATIN ALMA VE AĞIZDAN-AĞIZA PAZARLAMAYI YÖNLENDIREN ETKENLER. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2017;:59–85.
MLA
Arı, Ela. “GROUPON SATICILARI IÇIN TEKRAR SATIN ALMA VE AĞIZDAN-AĞIZA PAZARLAMAYI YÖNLENDIREN ETKENLER”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, June 2017, pp. 59-85, https://izlik.org/JA32XN25FR.
Vancouver
1.Ela Arı. GROUPON SATICILARI IÇIN TEKRAR SATIN ALMA VE AĞIZDAN-AĞIZA PAZARLAMAYI YÖNLENDIREN ETKENLER. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi [Internet]. 2017 Jun. 1;59-85. Available from: https://izlik.org/JA32XN25FR