Groupon case study

Topics: Risk, Decision making software, Decision theory Pages: 3 (521 words) Published: October 12, 2013

Question # 1

How has an understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 Million subscribers in 40 Countries today?

Goupon figured out that people were looking for simplicity in purchasing deals. They determined what people wanted and that they would purchase

these items at a discounted price. They brought these deals to peoples hometowns and made it easy to try new things at a discounted price. Their concept was

genious the model was a win for everyone. Consumers received discounts, merchants obtained new customers without the cost of advertising and Groupon

generated revenue at the sametime creating value in the marketplace.

Question # 2

What is Goupons Promise?

Any customer can return a Groupon no questions asked even if they used it.

How does the Groupon Promise affect a consumer's perveived risk and gognitive dissonance? The guarantee gives the purchaser

peace of mind. The purchaser knows that if they are unsatisified in any way they can just return the item for a refund even if they

have used it and are unhappy with the purchase. This allows the purchaser to make the purchase without the fear that they will be

wasting their money if they are unhappy.

Question # 3

Describe the Five-Stage purchase decision process for a typical Groupon user?

problem recognition - When the consumer wnts or needs something or has a problem that requires a purchase. infomation search - when the consumer shops for the desired product or service alternative evaluation - a consumer arrives at a final set of product choices and then must evaulate them based on individual need. purchase decision - the consumer has considered all the options and has come to a decision. evaluation - the consumer has made the purchase and must now evaluate if it was the correct decision. **The Five Stages of the Consumer Buying Process, By Carl Hose, eHow...
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