Consumer Purchase Behavior

consumer pConcept

This research investigates the key factors that influence consumer purchase behavior on online daily deals. We are using Groupon as the model of our research.

Online Daily Deals

We retain the definition of Lvovskaya, Tan, & Zhong,(2012), ‘’deal-of-the-day and social promotion websites commonly feature one online coupon, or more, a day for each city it operates in, offering consumers discount(s) for local merchants. Local merchants distribute their online coupon on these websites - and to price discriminate, they can predetermine the minimum online coupons to be sold.’’

Purchase Behaviour is a process of an individual’s decision making to satisfied their needs and desires. The decision to make a purchase usually influence by some factor such as price, buying impulsiveness, spending self-control, brand awareness, coupon proneness and the individual’s demographic. The decision will either lead to purchase, repurchase or not purchase.

Price is some amount of money that individuals have to pay for a product. Price does affect individual’s purchase behaviours. Online daily deal is in fact an online promotion that gives discounted price, so we like to see affect of price to individual’s purchase behaviour.

Buying Impulsiveness between individual is different, some individual may have high buying impulsiveness and some are low. Buying impulsiveness is individual’s unplanned decision to purchase that made just before purchasing it. The individuals with high buying impulsiveness have a tendency to purchase an item spontaneously after seeing it. So, we like to see if the individual’s buying impulsiveness reflects their purchase behaviour.

Spending self-control is an individual’s ability to control, monitor, preserve and regulate their spending-related decisions and thoughts. An individual with low spending self-control is likely spending more that an individual with low spending self-control. In online daily deal, customers can saves some amount...