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Emilio M. Perez
MKTG 360
Prof. Sauber

1. An understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today by developing the concept of making offers that are only carried out if enough people commit to participate in them. Groupon’s simple business model offers subscribers at least one deal in their city each day, but the coupon is only valid if a certain number of subscribers sign up for this deal.

2. The Groupon Promise is that any customer can return a Groupon, no questions asked, if they feel like Groupon has let them down. The Groupon promise affects a consumer’s perceived risk and cognitive dissonance by allowing the customer to feel as if there is no risk when purchasing a Groupon. The customer is even able to return the Groupon if they have already used it and were not satisfied. This allows a subscriber to purchase the Groupons without the worry of wasting money.

3. The five-stage purchase decision process for a typical Groupon user experiences: problem recognition, information search, alternative evaluation, purchase decision, and evaluation. Problem recognition is created by triggers that present consumers with an opportunity to do something that they wouldn’t normally do. Information search may occur due to a previous experience with the merchant making an offer or a conversation with family and friends regarding a product or service. The alternative evaluation stage is when the consumer focuses on the price as being the most important evaluative criteria. Then, there is the purchase decision stage that is unique to Groupon, in which a purchase is made online and then confirmed when the deals tip. Finally, the consumer will evaluate the purchase by comparing their experience with their expectations to determine if they are satisfied or dissatisfied.

4. The possible psychological and sociological influences on the Groupon...
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