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The effectiveness of number of deals purchased in influencing consumers' response to daily deal promotions: A cue utilization approach

Monika Kukar-Kinney and Lan Xia

Journal of Business Research, 2017, vol. 79, issue C, 189-197

Abstract: This research proposes and empirically tests a theoretical model of consumers' response to online daily deal promotions. A unique feature of such promotions is their social influence, as they provide information about how many others have already purchased the offer. Integrating cue utilization and social influence theories, the model outlines how the social cue about the number of deals purchased by others influences consumers' deal evaluations and purchase intentions across a variety of conditions. The research findings indicate that the number of deals as an extrinsic cue affects consumers' deal evaluations and intentions only when intrinsic product and deal cues (good vs. service, discount size) and consumer personal characteristics (familiarity with the provider) are not present or are insufficient to infer deal attractiveness. The research offers managerial implications with respect to effectively designing and promoting online daily deals.

Keywords: Daily deals; Price promotions; Cue utilization; Social influence; Online consumer behavior (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:eee:jbrese:v:79:y:2017:i:c:p:189-197