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Clinching the deal: An empirical study of the drivers of diffusion of daily deals

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  • Xia, Feihong
  • Chatterjee, Rabikar
  • Venkatesh, R.

Abstract

Daily deals, exemplified by proponents such as Groupon, Deals-for-Deeds and Pinduoduo, have been very popular across the globe among both online shoppers and businesses seeking to attract customers. A daily deal typically consists of a deep discount for a targeted group of shoppers valid for a single day. In this paper, we rely on the Rogers-Bass new product diffusion framework to delve into the adoption process of daily deals and untangle the drivers of adoption by analyzing a unique dataset we have scraped from Woot, an Amazon-owned daily deal website in the United States. Our results show that factors such as consumers’ prior experience with daily deals, time-of-day, and the price discount frame have a substantial quantifiable impact. Providing price discount information has a strong positive effect, in addition to just the deal price. We discuss managerial implications of the study and propose directions for future research.

Suggested Citation

  • Xia, Feihong & Chatterjee, Rabikar & Venkatesh, R., 2022. "Clinching the deal: An empirical study of the drivers of diffusion of daily deals," Journal of Business Research, Elsevier, vol. 149(C), pages 824-832.
    • Handle: RePEc:eee:jbrese:v:149:y:2022:i:c:p:824-832
    DOI: 10.1016/j.jbusres.2022.05.054
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    1. Park, Yookyung & Yi, Youjae, 2023. "Morning deals make me feel smart: Consumer evaluations of online sales promotions differ by time of day," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).

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