Posted: February 20th, 2017
Marketers also looked forward to selling deal-seekers additional goods or services and encouraging them to upgrade to more expensive offerings. Often the first deal was a money-loser for the marketer, an opportunity to establish a relationship with hordes of new customers that might, in time, lead to profits and word of mouth referrals.These days, some industry experts worry that “deal fatigue” is setting in as consumers sign up for multiple deal sites and receive offer after offer in their e-mailboxes or via mobile apps. Now, to combat competitors and build loyalty, industryleader Groupon is adding a frequent-buyer program and testing new categories ofoffers. Still, marketers are concerned that deal-a-day regulars will become soaccustomed to deep discounts that they won’t buy unless they believe the price is aslow as it can possibly go. Meanwhile, marketers have no guarantee that they’ll windup with as many repeat buyers as they expected, and many disappointed firms aresteering clear of deal sites. How will deal-a-day sites fare in the future?iCase Questions1. Once a consumer has used a deal-a-day site, how are learning choice tacticslikely to affect their subsequent decisions?2. In what way might deal sites affect the zone of acceptance for a product orcategory? What are the implications for marketers?3. Is it reasonable for a marketer to expect that a consumer who is loyal to adifferent brand would switch to its brand after trying a deeply discounted offer ona deal site? Explain your answer.4. What role do you think variety seeking plays in a consumer’s decision to usedeal-a-day sites?
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