Deal Or No Deal? the Effect Online Deals on Consumer Quality Perceptions and Competition

Jorge Mejia, University of Maryland, USA
Anand Gopal, University of Maryland, USA
Michael Trusov, University of Maryland, USA
We study the effect of online deals, such as Groupon on consumer quality expectations in online reviews. Through both empirical models using yelp.com’s reviews and lab experiments, we find that the effect of online deals on online reviews is strongly moderated by the merchant characteristics and competition.
[ to cite ]:
Jorge Mejia, Anand Gopal, and Michael Trusov (2015) ,"Deal Or No Deal? the Effect Online Deals on Consumer Quality Perceptions and Competition", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 635-637.