Five-Stage Purchase Decision Process for a Typical Groupon User

I want you to respond to each of the students answer for the
following questions (in attachments). Please keep separate. One page per student answer. Tell if you agree/disagree, like/dislike. 
Topic/questions students responded to: In attachments. 
Student response 1: Describe the five-stage purchase decision process for a typical Groupon user.
1. Problem Recognition- which is usually triggered by an e-mail, informs the Groupon user of new activities, both near and far, that begin the purchase process.
2. Information Search- reviewing previous purchaser’s opinions. Comparing Groupon’s offers with other sites, or even talking to friends to get their opinion
3. Alternative Evaluation Stage- Groupon customers focus on price as the most important criteria when choosing if this coupon is the one for them. Most of the Groupon’s are valid for a limited amount of time.
4. Purchase Decision- Customer makes a decision online about what Groupon they want.
5. Evaluating Experience- after purchase the consumers compare their experience with their expectation to determine if they are satisfied or dissatisfied.
4. What are possible psychological and sociological influences on the Groupon consumer purchase decision process?
The company uses variables such as gender, location of residence or office, and buying history to match deals with the customer.
-Increased the importance of personal values such as thriftiness, which makes consumers are attracted to Groupon
- 18 to 34 year old women with an affinity to social media enables the use of Groupon
-This process provides offers that are more likely to be of interest to consumers and allows Groupon to serve more merchants
5. What challenges does Groupon face in the future? What actions would you recommend related to each challenge?
The first challenge is related to the use of coupons. Some consumers use the coupons but do not become regular customers. I would recommend that every Groupon user be sent related emails of ads related to their recent purchases to motivate customers to return. Groupon could also give out free Groupon Bucks for dedicated customers to retain their customers.
The second challenge facing Groupon is managing its growth. By growing internationally Groupon needs to have satellite teams in each city to find businesses and understand how other countries shop. Using the plan for the United States in other countries won’t work because cultures are different wherever you go.
The last challenge Groupon faces is and extraordinary level of competition. My suggestion is for Groupon to start contracts with brand name businesses to offer to advertise their coupons. If Groupon becomes the sole company for all coupons, they eliminate the competition and aid the customer because they have a one stop shop for all things coupon.
Student response 2: he first stage in the decision making process for a Groupon user is recognizing that there is a problem. Groupon uses e-mail to connect and address the problem. Stage two is gathering information. The users may search the company for reviews. This stage also includes being recommended by friends. The third stage is the evaluation phase. This phase focuses on price and getting a good deal. The discounts may only be valid for a short time or with restrictions. The forth phase is the decision phase. This phase is when consumers purchase the product. The fifth phase is completed after the experience. In this phase the consumer compares their experience and decides if they got a good deal. 
The psychological factors that affect the use of Groupon could be the appearance of a deal. If the consumer thinks that they are getting a good deal they will be more inclined to buy into the deal. A sociological force could be popularity of product. Age and gender also affect what someone might buy. The book makes reference to the recession and that people are looking to get the best deal possible. 
Groupon has to stay relevant. There are many technological companies looking for a way to get the upper hand. Groupon has to be able to attract buyers from all socioeconomic classes in order to maintain stability. Groupon can offer products that are for both male and female as well as evaluate what the current customers are purchasing. Groupon has to also open more space for retailers to join the site. One of the problems listed in the reading was eating or going to the same places. If Groupon does not expand it will be offering the same deals over and over again. I feel that Groupon may need to do some technological work. I would create categories of items to target different age groups, and it has to be easy to navigate. I would link with businesses and create more space to add more companies. This product has to be advertised. Social media is a cheap easy way to advertise to consumers.