Groupon Video Case

1. Consumer Behavior is the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. Groupon tracks consumer behavior in various communities and they specialize their deals based on these areas. They understand the consumer behavior model, which allows them to attract a wide variety of consumers. They reduce perceived risk and cognitive dissonance in their consumers through their Groupon promise. Knowing how to target a consumer’s individual preferences also allows them to expand their business. Groupon uses word of mouth to help spread deals throughout communities. A combination of all these aspects has allowed them to grow to 60 million subscribers in 40 countries.

2. The Groupon promise is that nothing is more important to them than treating their customers well. If you ever feel that Groupon has let you down, then you can call them and they will refund your purchase. This is stated on their website, “We always want you to have a great experience with Groupon. That’s why we have the Groupon Promise. If you used a Local Groupon voucher before its promotional value expired, took a Getaways trip, or attended a GrouponLive event and were disappointed by your experience, contact us within fourteen days of your voucher use, trip or event and tell us about it. We’ll work with you to make it right.”

3. Perceived risk is the anxiety felt because the consumer cannot anticipate the outcomes of purchases but believes there may be negative consequences. Cognitive dissonance is the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change. The Groupon promise helps to reduce the affects of perceived risk and cognitive dissonance because it gives the consumer confidence in their purchase. The promise lets the consumer know that they are valued by Groupon and that Groupon will work with you if you...