Deal or no deal? Assessing the daily deal shopper

Abstract

We build upon previous work done in online shopping segmentation but follow a customer-revealed approach by using an explorative cluster analysis on a sample of 11,848 daily deal shoppers located in Switzerland. We identify six segments into which the daily deal shoppers can be categorized: recreational shoppers, mobile shoppers, traditionalists, bargain hunters, socializers, and convenience seekers. These clusters are distinctively different in terms of shopping motives, online behavior, and demographics. By following these clusters, our research maps for the first time the field of daily deal shopping in Switzerland. Our findings have implications for business, as they suggest how to best serve different segments to enhance the customer experience, and for research, as they complement daily deal literature by identifying daily deal shopper segments.