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- research-articleJuly 2021
Information Transparency, Multihoming, and Platform Competition: A Natural Experiment in the Daily Deals Market
Platform competition is shaped by the likelihood of multihoming (i.e., complementors or consumers adopt more than one platform). To take advantage of multihoming, platform firms often attempt to motivate their rivals’ high-performing complementors to ...
- research-articleDecember 2020
A Note on the Impact of Daily Deals on Local Retailers’ Online Reputation: Mediation Effects of the Consumer Experience
Information Systems Research (INFORMS-ISR), Volume 31, Issue 4Pages 1132–1143https://doi.org/10.1287/isre.2020.0935Practice- and Policy-Oriented Abstract
As daily deals have recently become a prevalent marketing tool for local businesses, more research on how daily deals affect local retailers’ long-term performance is needed. This study investigates how and why daily deals affect restaurants’ online ...
This study investigates the impact of daily deals on local retailers’ (restaurants’) online ratings. We collected and utilized a comprehensive panel data set that combines information on restaurants’ deal offerings (Groupon or LivingSocial) with their ...
- articleFebruary 2019
Groupon and Groupon Now: Participating Firm's Profitability Analysis
Computational Economics (KLU-CSEM), Volume 53, Issue 2Pages 617–632https://doi.org/10.1007/s10614-017-9736-yThe business model of Groupon has been categorized by many to be a case of daily deals or discount offerings to consumers. It is static (not responsive to business fluctuations and demands) and operates in batch mode (period-based availability). "...
- articleSeptember 2018
When Discounts Hurt Sales: The Case of Daily-Deal Markets
Information Systems Research (INFORMS-ISR), Volume 29, Issue 3Pages 567–591https://doi.org/10.1287/isre.2017.0772We investigate whether the discounts offered by online daily deals help attract consumer purchases. By tracking the sales of 19,978 deals on Groupon.com and conducting a battery of identification and falsification tests, we find that deep discounts ...
- articleJune 2018
The Operational Advantages of Threshold Discounting Offers
We study threshold discounting, or the practice of offering a discounted-price service if at least a prespecified number of customers signal interest in it, as pioneered by Groupon. We model a capacity-constrained firm, a random-sized population of ...
- articleJune 2018
Helping Merchants to Assess the Profitability of Deal-of-the-Day Promotions
The ability to calculate and understand the profitability of deal-of-the-day promotions DoDs is of vital importance for merchants. It is also challenging because it requires these merchants to consider long-term, cross-selling, and cannibalization ...
- articleApril 2018
Local Market Characteristics and Online-to-Offline Commerce: An Empirical Analysis of Groupon
We investigate the factors that affect the growth of Groupon, the leading online daily deals platform. We concentrate on the online-to-offline O2O aspect of the business that differentiates it from other e-commerce platforms-its strong connection to ...
- research-articleSeptember 2017
How e-WOM and local competition drive local retailers' decisions about daily deal offerings
Decision Support Systems (DSSY), Volume 101, Issue CPages 82–94https://doi.org/10.1016/j.dss.2017.06.003Local retailers considering offering daily deals must take into account possible impacts of both electronic-word-of-mouth (e-WOM) and local competition. However, how e-WOM, local competition, and their interactions affect local retailers' decisions to ...
- research-articleSeptember 2015
Relationships Among Minimum Requirements, Facebook Likes, and Groupon Deal Outcomes
ACM Transactions on Management Information Systems (TMIS), Volume 6, Issue 3Article No.: 9, Pages 1–28https://doi.org/10.1145/2764919Daily deal coupons have gained a prominent foothold on the web. The earliest and largest player is Groupon. Originally, Groupon deals were a mix of deals with a minimum requirement (MR) of coupon sales before a deal became effective and of deals without ...
- research-articleAugust 2012
Value proposition and social proof in online deals: an exploratory study of Groupon.com
ICEC '12: Proceedings of the 14th Annual International Conference on Electronic CommercePages 294–300https://doi.org/10.1145/2346536.2346596In this paper, we examine the role of value proposition and social proof on the success of localized online deals that are made available in coupon form. We develop a model to understand what factors affect coupon sales of a deal and conduct an ...
- research-articleAugust 2011
An empirical study on quality uncertainty of products and social commerce
ICEC '11: Proceedings of the 13th International Conference on Electronic CommerceArticle No.: 16, Pages 1–10https://doi.org/10.1145/2378104.2378120With the advance of Social Network Service (SNS) like Facebook, Social Commerce (SC) such as Groupon now prospers, which provides daily deals at a highly discounted price by gathering buying power of consumers through SNS. From the perspective of ...