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

Nina Angelovska, Sasho Josimovski and Lidija Pulevska Ivanovska
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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

Managing Global Transitions, 2019, vol. 17, issue 3 (Fall), 221-238

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.

Keywords: retailers; profitability; marketing; tobit model; group buying model; promotions; Macedonia (search for similar items in EconPapers)
JEL-codes: M21 M31 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.26493/1854-6935.17.221-238

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