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Drivers that Impact the Merchants’ Repeat Intention for Group Deal Promotions

Author

Listed:
  • Nina Angelovska

    (Macedonian E-commerce Association, North Macedonia)

  • Sasho Josimovski

    (University ‘Ss. Cyril and Methodius,’ North Macedonia)

  • Lidija Pulevska Ivanovska

    (University ‘Ss. Cyril and Methodius,’ North Macedonia)

Abstract

The purpose of this study is to investigate the drivers affecting merchant’s intention to repeat group deal offers and use the group buying site as a promotional tool. The research is done based on secondary and primary data collection. Primary data was collected through a questionnaire aimed at businesses that had completed a daily deal promotion. Tobit model was employed to analyze data. The results show that merchants’ intention to repeat offers depends on profitability of the deals output, spending beyond the coupon, new customers brought by the deal, and there is diversity across different categories of businesses. Findings of this study can be useful to group buying companies to improve their business to small- and medium-sized businesses considering a daily deal promotion.

Suggested Citation

  • Nina Angelovska & Sasho Josimovski & Lidija Pulevska Ivanovska, 2019. "Drivers that Impact the Merchants’ Repeat Intention for Group Deal Promotions," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 17(3 (Fall)), pages 221-238.
    • Handle: RePEc:mgt:youmgt:v:17:y:2019:i:3:p:221-238
    DOI: 10.26493/1854-6935.17.221-238
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    References listed on IDEAS

    as
    1. Zike Cao & Kai-Lung Hui & Hong Xu, 2018. "When Discounts Hurt Sales: The Case of Daily-Deal Markets," Information Systems Research, INFORMS, vol. 29(3), pages 567-591, September.
    2. Eric A. Greenleaf, 1995. "The Impact of Reference Price Effects on the Profitability of Price Promotions," Marketing Science, INFORMS, vol. 14(1), pages 82-104.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    retailers; profitability; marketing; tobit model; group buying model; promotions; Macedonia;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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