Deal of the day is a form of sales promotion that offers merchants the possibility to promote their product at a discount to a mailing list of subscribers that is managed by an intermediary. The objective of the study presented in this paper is to learn more about the development of deal of the day and to assess its attractiveness for merchants. For this purpose, the study examines the purchase history database of a small Swiss deal website. The key findings are: the deal of the day industry is still growing steadily, and late subscribers are as attractive as early adopters; most subscribers buy only one deal or none at all; and only a minority of subscribers buys deals frequently enough to be labeled as high-frequency purchasers. The findings offer insight into the past and future development of deal of the day and show that there are segments within the subscriber base that intermediaries need to treat differently.
BoonEWiidRDesAutelsP (2012) Teeth whitening, boot camp, and a brewery tour: A practical analysis of ‘deal of the day’. Journal of Public Affairs12(2): 137–144.
5.
ChandonPWansinkBLaurentG (2000) A benefit congruency framework of sales promotion effectiveness. The Journal of marketing64(4): 65–81.
6.
ChenIJPopovichK (2003) Understanding customer relationship management (CRM) – People, process and technology. Business Process Management Journal9(5): 672–688.
DelVecchioDHenardDHFrelingTH (2006) The effect of sales promotion on post-promotion brand preference: A meta-analysis. Journal of Retailing82(3): 203–213.
9.
Dholakia U and Kimes SE (2011) Daily deal fatigue or unabated enthusiasm? A study of consumer perceptions of daily deal promotions (11 September 2011).
10.
DholakiaUM (2010) How effective are Groupon promotions for businesses. Social Science Research Network. Available at: SSRN: http://ssrn.com/abstract=1790414.
Edelman B, Jaffe S and Kominers S (2011) To Groupon or not to Groupon: The profitability of deep discounts. Harvard Business School NOM Unit Working Paper (11-063).
13.
GönülFSrinivasanK (1996) Estimating the impact of consumer expectations of coupons on purchase behavior: A dynamic structural model. Marketing Science15(3): 262–279.
14.
GopalRDPathakBTripathiAK (2006) From Fatwallet to eBay: An investigation of online deal-forums and sales promotions. Journal of Retailing82(2): 155–164.
15.
GrahamJF (1994) Increasing repurchase rates: A reappraisal of coupon effects. Psychology & Marketing11(6): 533–547.
16.
KimSBSunKAKimDY (2013) The influence of consumer value-based factors on attitude-behavioral intention in social commerce: The differences between high-and low-technology experience groups. Journal of Travel & Tourism Marketing30(1–2): 108–125.
17.
KotlerPZaltmanG (1971) Social marketing: An approach to planned social change. The Journal of Marketing35(3): 3–12.
18.
KrasnovaHVeltriNFSpenglerK (2013) “Deal of the Day” platforms: What drives consumer loyalty. Business & Information Systems Engineering5(3): 165–177.
19.
KumarVRajanB (2012) Social coupons as a marketing strategy: A multifaceted perspective. Journal of the Academy of Marketing Science40(1): 120–136.
20.
LeeILeeK (2012) Social shopping promotions from a social merchant's perspective. Business Horizons55(5): 441–451.
21.
LiuYSutantoJ (2012) Buyers’ purchasing time and herd behavior on deal-of-the-day group-buying websites. Electronic Markets22(2): 83–93.
NarasimhanC (1984) A price discrimination theory of coupons. Marketing Science3(2): 128–147.
26.
PeattieKPeattieS (1995) Sales promotion – A missed opportunity for services marketers. International Journal of Service Industry Management6(1): 22–39.
27.
PorterME (2001) Strategy and the Internet. Harvard business review79(3): 62–79.
28.
RoscoeD (2003) So what is the future of CRM. Journal of Customer Management11(2): 42–43.
29.
RossiPEMcCullochREAllenbyGM (1996) The value of purchase history data in target marketing. Marketing Science15(4): 321–340.
30.
RowleyJ (2002) Eight questions for customer knowledge management in e-business. Journal of Knowledge Management6(5): 500–511.
