Five-Stage Purchase Decision Process for a Typical Groupon UserProblem Recognition- which is usually triggered by an e-mail, informs the Groupon user of new activities, both near and far, that begin the purchase process.2. Information Search- reviewing previous purchaser’s opinions. Comparing Groupon’s offers with other sites, or even talking to friends to get their opinion3. Alternative Evaluation Stage- Groupon customers focus on price as the most important criteria when choosing if this coupon is the one for them. Most of the Groupon’s are valid for a limited amount of time.4. Purchase Decision- Customer makes a decision online about what Groupon they want.5. Evaluating Experience- after purchase the consumers compare their experience with their expectation to determine if they are satisfied or dissatisfied.4. What are possible psychological and sociological influences on the Groupon consumer purchase decision process?The company uses variables such as gender, location of residence or office, and buying history to match deals with the customer.-Increased the importance of personal values such as thriftiness, which makes consumers are attracted to Groupon– 18 to 34 year old women with an affinity to social media enables the use of Groupon-This process provides offers that are more likely to be of interest to consumers and allows Groupon to serve more merchants5. What challenges does Groupon face in the future? What actions would you recommend related to each challenge?The first challenge is related to the use of coupons. Some consumers use the coupons but do not become regular customers. I would recommend that every Groupon user be sent related emails of ads related to their recent purchases to motivate customers to return. Groupon could also give out free Groupon Bucks for dedicated customers to retain their customers.The second challenge facing Groupon is managing its growth. By growing internationally Groupon needs to have satellite teams in each city to find businesses and understand how other countries shop. Using the plan for the United States in other countries won’t work because cultures are different wherever you go.The last challenge Groupon faces is and extraordinary level of competition. My suggestion is for Groupon to start contracts with brand name businesses to offer to advertise their coupons. If Groupon becomes the sole company for all coupons, they elim……………..
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