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Crimonology
To what extend do the online daily travel deals affect purchase behavior? Do online daily travel deals influence customers' perceptions about that brand and purchase behavior?
Examination of the Living social site, of studies connected to purchaser's online purchase of travel tickets (such as Nair et al. (2006)), and of other websites related to online daily travel deals makes me conclude that online daily travel deals affect purchase behavior in that they cause consumers to compare the prices amongst the various sites and to deliberate in their actual decision-making. It encourages them to brose various site as and compare, and therefore consumers may well end up purchasing a travel deal from a different company that he may judge cheaper, more convenient, or better in other ways.
Whilst perusing the offers on the Livingsocial site myself, I found myself thinking that perhaps I could yet find a cheaper offer elsewhere. It seems to me (from analysis of my own response) that consumers are not expecting to find deals and when they do discover them it leads them...
The sole time that they may not procrastinate is if their trip happens to be crucial and urgent, in which case they are rushed to make a decision and may very well accepts Livingsocial's deal without investigating other sites.
On the other hand -- and this are what studies show too, prior purchasing behavior of tickets and brands also determines repeat performance. So, in other words, if consumers have had pleasurable experience from Livingsocial in the past, have frequented them before and been pleased with their service, consumers may well continue frequenting them without deciding to examine other sites for the possibility of acquiring cheaper tickets.
"Consumers," Nair et al. (2006) comment, "do not easily switch to competitors once they have transacted with a specific site." This, by the way, conforms to the learning or switching cost theory of purchasing behavior which…
Source
Nair, CTR et al. (2006) Modeling Online Browsing and Purchase of Airline Tickets
http://apps.olin.wustl.edu/faculty/chan/files/OnlineSearch&Purchase.pdf
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