Case Study: Groupon

As Groupon face these challenges with their competitors and consumer’s buying behavior, the company has to find a way to remain competitive but stay on trend with the changes of consumers. In 2008 when Groupon was founded, the experience of shopping online and downloading apps to your cell phone was not as trendy and popular in 2008 as it is today in 2018.

“According to IMRG (Interactive Media in Retail Group), the trade body for internet retailers, 51 percent of online sales between November and January in the UK involved hand-held devices rather than traditional computers or laptops. A year earlier the equivalent figure was just 40 percent”. (Bingham, 2016) This information can be used for Groupon to show that consumers are deciding to use the cell phones to shop than sitting at a computer. This information provides important information that the organization can use to reach their consumers.

If 51

“Majority of millennials search for a coupon before making a purchase. Millennials do this more when they shop online. An average of three minutes is spent searching for coupons that might sound like a lot but if online shopping is meant to fast, simple, and easy, three minutes of searching for coupons is significant and clearly an important motivator”. (Kestenbaum, 2017)

“The Groupon Promise is that any customer can return a Groupon, no questions asked-even if they used it- if they feel Groupon let them down”. (Kerin & Hartley, 2017) This promise to the consumer can easy or sway them to use Groupon because they are can return any item that they are unhappy with. This can help consumers with a lot of confusion that can come up with deciding to shop from Groupon or one of their competitors. Another positive of this promise that the organization offers is that it can but a consumer at easy when it comes to spending their