Marketplace is fast turning into e-marketplace. From needle to ship, everything is being sold
and bought on the internet. With new and new players coming in, it is but natural for the
existing players as well as new entrants to come up with innovative techniques to sell their
goods and services. Offering “deals” and ‘lucrative discounts” is one such glamorous trend.
The authors have tried to examine the factors which lead people to buy these discount
coupons and the consumer behavior towards them. A sample of respondents was
administered an e-questionnaire and their responses were evaluated using statistical tools and
techniques. This paper, thus, identifies typical buying behavior of a consumer while making
an e-purchase of a deal and discount coupon, their preferences towards mode of payment and
tendency to repurchase the same.
1. Introduction
With the advent of internet and e-commerce, a variety of new business models are coming
into picture. These websites promise to provide all round experience to the customer – from
the fun of browsing various product/service categories to the thrill of bargaining and
discounting. Traditionally, there has been a feeling of thrill associated with getting good
discounts. There is a sense of achievement attached with cracking a great deal. It is this sense
that e-entrepreneurs have successfully targeted upon through ‘deal sites’ like snapdeal,
flipkart, yebhi etc. The user accesses a great service with discounts of at least 80% and the
company projects a friendly image to its target while raising its profile and gaining customer
loyalty. The reason the business model works is precisely because it covers a very basic need
in our lives: Consumers enjoy free time, get to know new places and leisure options, all at big
discounts. Users can find offers that range from beauty and health treatments to restaurants,
travel, entertainment, sport, etc. Also, as occurs, the limited nature of the offers makes the
purchase attractive because, if the purchase is not made in time, the chance to get the discount
disappears.
1.1 Deal sites in India
1.1.1 Snapdeal
Snapdeal is owned and managed by Wharton graduates. The basic idea is to provide a
platform to vendors where thet can sell their unutilized inventory at cheap price. At the same
time, it offers up to 90% discounts on dining, health and beauty services, branded products,
travel and more, thereby providing an extreme feel good factor to the customer. It charges
upfront 35% of the deal from the consumer and the rest is paid by the customer directly to the
vendor. Snapdeal has relied very heavily on promotion and advertising and has been rightly
called as India’s answer to Groupon.
1.1.2 Mydala
Mydala is a Delhi based startup, working on similar lines as Groupon in the U.S. Mydala has
seven primary areas of service: Restaurants, health deals like spas etc, recreation like
weekend packages, fashion, lifestyle, home & baby, and events. It is also foraying into
mobile phones, jewellery at discounts running up to 30%.
Mydala works basically on the concept of ‘group buying’. The customers get access to highly
discounted quantity and time limited deals (24 hours only) up to 80 per cent off retail, which
they can never get on their own. Local businesses get tremendous visibility, paid customer
footfall, access to new customers and build their reach and loyalty. The daily deals also have
a broad appeal. In short, they offer something for everyone, whether one is shopping or is a
shop owner.
1.1.3 Dealsandyou
Dealsandyou is a portal Headquartered in Gurgaon. It is a part of the Group Buying Global
AG which runs leading collaborative buying websites across four continents. Its main feature
is Collective Bargaining Power which impacts buying behavior. It attracts larger group for
shopping where shoppers can afford to shop and save. Buyers are able to obtain huge
discounts on shopping. One gets a promo code on shopping from Dealsandyou, which can be
redeemed at the time of actual buying. It is mandatory for the users to create their profile
before they can begin shopping. This gives the portal an edge in customer relationship
management.
1.1.4 Flipkart
Flipkart is probably India’s oldest deal offering website. It has been operational since 2007.
At its launching, the objective of the website was to offer best priced books to customers,
which is why it is often referred to as “ Amazon of India”, however now, it is functional in a
variety of domains like electronics, mobile phones, movies, music, games, mobiles, cameras,
computers, healthcare and personal products and home appliances. There are lots of path
breaking ideas which Flipkart has successfully implemented like cash on delivery, 30-day
replacement policy, EMI options etc.
1.1.5 Yebhi.com
Yebhi.com is owned by Big Shoe Bazaar India Pvt Ltd. which is the fastest growing
company in lifestyle category in India. It powered the sale of multi brand Footwear online
through www.bigshoebazaar.com which transformed into www.Yebhi.com which lead to
expansion in other categories like Apparels, Accessories, Bags, Jewellery and Mobiles.
Incepted in August 2009, Yebhi.com is a one fashion store, that follows the principle of BUY
FIRST & SELL LATER.. This policy is unique among other online stores. Yebhi.com
purchases the products in bulk, in tune with the latest fashion trends, and stores them in their
1 lakh sq/ft warehouse facilities, before selling it to the end consumer. This is probably the
most significant process that enhances Yebhi’s credibility and enables the company to
maintain high quality standards and a perfect fulfillment ratio. The company carries a very
large variety of footwear, t-shirts, shirts, jeans, bags, clutches and other fashion accessories.
