Such a simple and beautifully executed idea. Hear it also made great use of the new "Sponsored Stories" option on FB to spread the word.
04 June 2011
03 April 2011
01 January 2011
Groupon and Behavioral Economics
Below is a brief extract from a great post on what drives Groupon's success in Media Post.
Groupon's success lies in its deft use of behavioral economic insights to drive engagement -- and yes, excitement with the shopping process. We're creatures that don't like be overwhelmed with choices, so it focuses on one deal a day. We are literally drawn by instinct to its one-day sales, because of our tendency to see value in anything that is in limited supply. We fear prices that are too low, but are reassured that the deals are achieved through the mechanics of bulk purchase. Finally, we are social creatures, so we take comfort in the social proof that many others are pursuing the same deal, and pleasure in the ability to connect with friends and family over offers that we share an interest in.
Businesses know it's difficult to draw repeat consumers out of a discount mindset. I think Groupon's success is great news for consumers and a looming threat for business margins across categories and retail chains. Time will tell.
Groupon's success lies in its deft use of behavioral economic insights to drive engagement -- and yes, excitement with the shopping process. We're creatures that don't like be overwhelmed with choices, so it focuses on one deal a day. We are literally drawn by instinct to its one-day sales, because of our tendency to see value in anything that is in limited supply. We fear prices that are too low, but are reassured that the deals are achieved through the mechanics of bulk purchase. Finally, we are social creatures, so we take comfort in the social proof that many others are pursuing the same deal, and pleasure in the ability to connect with friends and family over offers that we share an interest in.
Businesses know it's difficult to draw repeat consumers out of a discount mindset. I think Groupon's success is great news for consumers and a looming threat for business margins across categories and retail chains. Time will tell.
03 October 2010
Where good ideas come from?
Create collaborative environments. Chance then favors the connected minds.
28 September 2010
Proximity Index & Personal Electronics
The more intimate your relationship with a given product, the more you want to know how it was made, where it was grown and how it came to the market. In developed markets, this translates to open kitchens, cries to cut the kilometers an apple travels from the tree to tart etc.. etc... You get the drift.
However, people curiously don't have the same relationship with personal electronics. If they did, they should have lined up outside Apple stores to return devices when the Foxconn suicides recently came to light. But then they didn't. Is the transient nature of the category, characterized by fast changing models, making people indifferent to products they sleep with and probably can't leave home without?
15 August 2010
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