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Case Study –Groupon

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MAN 105-01

September 25th, 2014
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?
According to the article from the textbook, Groupon consumer generally follow the same purchase decision process: problem recognition, information search, alternative evaluation, purchase decision, and postpurchase behavior.   All those purchase decision process influence by psychological, sociocultural, and situational factors.   Groupon created a double win situation: consumer receive an exceptional value on discount, the merchant gain some new customers without spending extra money on doing advertising, and Groupon generates revenue.
Question 2: What is the Groupon Promise? How does the Groupon Promise affect a consumer’s perceived risk and cognitive dissonance?
“The Groupon Promise” means any customers can return a Groupon with no question asked even if they used it.   Groupon only pick on 12% of all merchants that contact with them, so it shows Groupon is very be careful on what merchant they put on the internet.
Question 4: What are possible psychological and sociological influences on the Groupon consumer purchase decision process?
Psychology helps marketer understanding why and how consumer behave, such as motivation and personality.   In the case of Groupon, they show each of the deal’s original price and after discount price.   It highlights how much it save for you, and what is the benefit for you.  
LO 2
However, Groupon also doing discount code (like you can put the instant code shows on the top so it will save you $10 on massages.) that can catch you to make your choice right now, or when you tell your friends or family one deal and they actually purchase it, you will get $5 bucks off in your next purchase.   All those can show how Groupon influences consumer psychologically and sociologically.
Question 5: What challenges does Groupon face in the...

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