1-R- A business success depends on its profit, which is relying heavily on its marketing division, responsible for seeking customers' needs and wants, and satisfying them. These two primary objectives could attain if marketers understand consumer behavior which is any action taken by a person to purchase and to use products and services. Understanding consumer behavior will allow companies to be successful and gain more customers, especially in today's competitive world. A consumer purchase decision passes through five stages: problem recognition - information search- alternative evaluation- purchase decision and post-purchase decision. The comprehension of these steps helps Groupon, a company that offers ''Group coupon'' to lead the daily …show more content…
They possess particular understanding and attitudes towards various products. For instance, someone can decide to buy a brand over another because the company involves in social causes. Secondly, social factors influencing Groupon consumers' behavior could be: reference groups - Social status. 1- Reference groups: coworkers - family members- friends might affect a Groupon customer in his/her making a purchase decision. As humans being, we need people around to talk to and discuss that could help us in our decision. We tend to pick up products recommended by our friends and family because they have used them earlier and knew what is all about. 2- Social status: Groupon consumer part of the Upper middle class will be attracted by expensive items rather than the middle and lower class who would buy survival goods. ''Groupon user is an 18-34-year-old woman with an average income of about $70,000, stated in the video …show more content…
Groupon faces three significant challenges. The first one is the use of the coupons and the dissatisfaction of the merchants: some consumers buy the coupons, but never used them, leaving them dissatisfied and unlikely to use Groupon again. Some dealers are unhappy because some of the deals are not profitable as most of the customers are bargain hunters and don't make repeat purchases. Groupon might address this challenge by developing a deep relationship with the merchant partners. Groupon could help them manage the deals effectively. For example, a small business can get overwhelmed by the response of a deal, but they can't support all of the consumers all at once, and even Groupon has a no question refund policy that might leave some customers dissatisfied. Groupon has to plan with the merchants to know how many people they can reasonably serve and open the deal consequently. Groupon can allow the merchants to collect the email address of the users who purchases, coupons or Groupon can send a reminder message to consumers who have not used their coupon. Moreover, reducing restrictions on the utilization of the