How e-WOM and local competition drive local retailers' decisions about daily deal offerings

被引:32
作者
Bai, Xue [1 ]
Marsden, James R. [1 ]
Ross, William T., Jr. [2 ]
Wang, Gang [3 ]
机构
[1] Univ Connecticut, Sch Business, Operat & Informat Management, 2100 Hillside Rd Unit 1041, Storrs, CT 06269 USA
[2] Univ Connecticut, Mkt, Sch Business, 2100 Hillside Rd Unit 1041, Storrs, CT 06269 USA
[3] Univ Delaware, Alfred Lerner Coll Business & Econ, Accounting & Management Informat Syst, 42 Amstel Ave, Newark, DE 19716 USA
关键词
Daily deals; E-WOM; Local competition; Groupon; Propensity score analysis; WORD-OF-MOUTH; PRODUCT REVIEWS; ONLINE; IMPACT; LOCATION; MARKETS; MATTER; SALES;
D O I
10.1016/j.dss.2017.06.003
中图分类号
TP18 [人工智能理论];
学科分类号
081104 ; 0812 ; 0835 ; 1405 ;
摘要
Local retailers considering offering daily deals must take into account possible impacts of both electronic-wordof-mouth (e-WOM) and local competition. However, how e-WOM, local competition, and their interactions affect local retailers' decisions to offer daily deals remains unclear. Here we examine these effects utilizing a data set that contains details of daily deals, online reviews, and local competition measures for restaurants in the Chicago area. With a propensity score matching (PSA) method, we show: 1) local retailers with high ratings and high number of reviews were more likely to initiate daily deals; 2) local retailers in an area with a low level of local competition were more likely to initiate daily deals; and 3) the strength and direction of the impact of e-WOM depend on the level of local competition. Our results enhance understanding of local retailers' decisions to offer daily deals and yield important implications related to daily deal sites. (C) 2017 Elsevier B.V. All rights reserved.
引用
收藏
页码:82 / 94
页数:13
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