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

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.