In 2010 a new concept came to Denmark. The concept is called ‘deal of the day’ and Downtown was the first ‘deal of the day’ website in Denmark. Today, there are approx. 40 active ‘deal of the day’ websites that offers deals every day. To explain the concept: a website offers a single product for sale for a period of 24 to 36 hours. Members of deal of the day websites receive online offers and invitations in email and social networks. The consumer gets 50 % off on an experience. The idea of this project is to clarify the relationship between companies and consumers. The companies use ‘deal of the day’ as marketing, and spend a lot of time and money on this concept. Thus it is appropriate to examine whether they get anything out of having lower or no income when they have an offer through the ‘deal of the day’ websites. There are many aspects that are relevant to examine within the relationship between consumer, business and ‘deal of the day’ website. This project will focus on consumers and their relationship with companies who use ‘deal of the day’. Therefore, the project's problem statement includes: What are the consumers' perceptions of the companies that make use of ‘deal of the day’ from a relationship marketing perspective? Theories from experience economy, relationship marketing and hedonic consumption forms the framework for the analysis of the companies and the consumers. The results of the analysis was discussed and through this discussion it was discovered that companies are important to the ‘deal of the day’ websites in order to survive, but they also require consumers in order to make money. They build a close relationship with companies, while building a distant relation through e-relation to the consumers. The majority of consumers who buy ‘deal of the day’ are deal shoppers. They are looking for the next bargains and enjoy the luxury they can get at half price. However, there are some consumers who revisit the companies, and there is an opportunity to build a relationship with these consumers. Consumers use their senses to evaluate the experiences and companies can benefit from this, by adding sensory experiences to experiences. ‘Deal of the day’ is a quite big market in Denmark and there are many ‘deal of the day’ websites to choose from. Consumers are signed up to receive daily e-mails with offers from 3.36 websites on average and most have several websites they buy from. The reason why the consumers buy ‘deal of the day’ offers is mainly because they can get the experience at half the price, but also to try something new or different. Many consumers have had a good experience, and believe that they will come back to a company if they have had a good experience and it lived up to their expectations. According to the analysis, many consumers have not revisited a company, but a lot of these consumers intent to revisit in the future. The majority of consumers enjoy half-price offers and believe that the ‘deal of the day’ concept works. Can ‘deal of the day’ create loyal customers? Yes it can, but it requires a lot of work of the company and many of the customers are deal-hunters. The trend for returning to a place and paying full price is between a third and fifth of the consumers that have used a daily deal. It is these customers who are potential loyal customers if the companies build up relationships with them. It seems to be an expensive solution and companies have to think carefully before they choose to use the ‘deal of the day’ concept to get loyal customers.
|Educations||MA in International Business Communication (Intercultural Marketing), (Graduate Programme) Final Thesis|
|Number of pages||102|