Promotional Strategies for Small Businesses: Group Buying Deals

Tracy L. Tuten · Christy Ashley

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Consumer Market Behavior and Pricing Customer Service Quality and Loyalty Digital Marketing and Social Media

Abstract

Online group buying through Internet-based daily deal websites such as Groupon.com has become a popular social commerce tool for consumers and retailers alike in recent years. Considering the benefits of deeply discounted prices for consumers and opportunities to drive store traffic and enhance product trials for retailers, the popularity is not surprising. Despite the apparent mutual benefits, there are risks too. Anecdotal evidence reported by small businesses suggests that many deal offers fail to break even, attracting one-time, price-sensitive customers. Little empirical research exists on the value of group deals for small businesses or the implications of participation on consumer attitudes and intentions. Using equity theory as a conceptual basis, the study examines how buyers value collective buying deals, and how that value translates into positive future outcomes for the firm, including repurchase intentions and positive word-of-mouth.

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2013“Deal of the Day” Platforms: What Drives Consumer Loyalty?2022Deal or No Deal: Sales Promotion Influence on Consumer Evaluation of Deal Value and Brand Attitude 2021Identifying Trends and Opportunities in Small Business Research: A Review of Articles in the Small Business Institute Journal , 2008-2019

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