1) How has an understanding of consumer behaviour helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries?
At first, take a look at Groupon’s owner. The idea of creating Groupon came up when he was bored in Chicago finding himself in the same routine going to the same restaurants and movie theatres. With that in mind is impossible to deny that majority of population is stuck in a boring routine and would love to explore different things. In addition to that the world is more and more “online”, so it became logical that creating a website/app to help people find attractive and cheap deals to have fun would be a success! They solved a really complex problem, which is engage with local customers so it’s possible to adapt Groupon to local communities.
2) What is the Groupon promise? How does the Groupon Promise affect a consumer’s perceived risk and cognitive dissonance?
According to Groupon’s founder, his company promise is: “Any costumer can return a Groupon, no questions asked - even if they used it - if they feel like Groupon has let them down.”.
Giving to consumers the opportunity of “returning” a coupon even if it was used without any questions reduces post purchase anxiety or tension. Some studies shows that satisfaction affects consumers chances to repeat a purchase of determined brand. With that in mind it became possible to affirm that consumers feel secure about their purchase due to Groupon’s return policy.
3) Describe the five-stage purchase decision process for a typical Groupon user.
A- Problem Recognition. Groupon shows new deals (via email/notification etc) that intend to attract consumers needs, offering an opportunity to do something that is not commonly done by the consumer.
B- Information Search: A Groupon offer will usually start an “internal search,” so the consumer will reflect on previous