Consumer Behaviour Essay

1441 Words6 Pages
1. In what ways did the understanding of consumer behaviour helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries. According to Kotler (1999), consumer behaviour comprises of mental, physical and emotional behaviour of a person when he or she makes a choice, buying, using and disposing of a product and services. According to the article, understandings of consumer behaviour really helped Groupon to grow enormously. The numerical evidence indicates Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries. Therefore, the arising question here is how the understanding of consumer behaviour helps Groupon to achieve that enormous growth. Groupon achieve this by developing a simple business plan which is they use coupon to influence the consumer purchasing behaviour. The coupon concept works in a ways where offers are carried out with sufficient number of participants who interested to participate with them. Groupon provide a chance to consumer to try out something new with a lower price and sell it with large quantity. For example, Groupon caters one deal to subscribers in their city each day as the coupon is valid only for certain number of subscriber who signs up for the deal. Also, Groupon really look into the behaviour of consumer by determining the needs and wants of a consumer. For example, they made easier for customer to engage in purchasing deals. This made even simpler when internet is widely used around the world as they feel simpler to purchase through online. Subscriber also receives discount and merchant to obtain new customer. On the other hand, Groupon promise influence consumer to subscribe and to have a purchasing deal. The Groupon policy is customer can return to Groupon when they feel dissatisfied and feel that Groupon has let them down even if they
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