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The daily deals marketplace: empirical observations and managerial implications

The daily deals marketplace: empirical observations and managerial implications The Daily Deals Marketplace: Empirical Observations and Managerial Implications JOHN W. BYERS Boston University and MICHAEL MITZENMACHER Harvard University and GEORGIOS ZERVAS Yale University The emergence of the daily deals online marketplace has been an e-commerce phenomenon that has engendered remarkable stories of rapid growth, exemplified by firms such as Groupon and Living Social. At the same time, critics have accumulated considerable evidence, largely anecdotal in nature, of incipient failure of this marketplace. Our recent empirical work has attempted to reconcile these divergent viewpoints through quantitative evaluation, in an effort to understand the sustainability and long-term outlook of the daily deals business model. Our methods draw from a rich tradition in marketing and econometrics to study the interplay between promotional offers, word-of-mouth engagement, and consumer satisfaction. Leveraging datasets we collected encompassing tens of thousands of daily deals offers and millions of Yelp reviews, we have quantified the significant extent to which daily deals users express dissatisfaction with today's offers, and elaborated the root causes underlying this behavior. We discuss the broader implications of our methodology and the managerial implications that follow from our root cause analysis, both for daily deals merchants and daily deals services, that could lead http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png ACM SIGecom Exchanges Association for Computing Machinery

The daily deals marketplace: empirical observations and managerial implications

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References (1)

Publisher
Association for Computing Machinery
Copyright
Copyright © 2012 by ACM Inc.
ISSN
1551-9031
DOI
10.1145/2509002.2509009
Publisher site
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Abstract

The Daily Deals Marketplace: Empirical Observations and Managerial Implications JOHN W. BYERS Boston University and MICHAEL MITZENMACHER Harvard University and GEORGIOS ZERVAS Yale University The emergence of the daily deals online marketplace has been an e-commerce phenomenon that has engendered remarkable stories of rapid growth, exemplified by firms such as Groupon and Living Social. At the same time, critics have accumulated considerable evidence, largely anecdotal in nature, of incipient failure of this marketplace. Our recent empirical work has attempted to reconcile these divergent viewpoints through quantitative evaluation, in an effort to understand the sustainability and long-term outlook of the daily deals business model. Our methods draw from a rich tradition in marketing and econometrics to study the interplay between promotional offers, word-of-mouth engagement, and consumer satisfaction. Leveraging datasets we collected encompassing tens of thousands of daily deals offers and millions of Yelp reviews, we have quantified the significant extent to which daily deals users express dissatisfaction with today's offers, and elaborated the root causes underlying this behavior. We discuss the broader implications of our methodology and the managerial implications that follow from our root cause analysis, both for daily deals merchants and daily deals services, that could lead

Journal

ACM SIGecom Exchanges – Association for Computing Machinery

Published: Dec 1, 2012

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