Massages at 50 percent off, deeply discounted spa services, nearly free facials: Discount deal companies like Groupon and Living Social have changed the way many massage-and-spa companies, along with restaurants, paintball ranges, fishing-boat tours and just about every other type of business, get new customers.
But what do the customers think?
A new study shows that the companies are more popular than ever among consumers. “The key finding is that there is no evidence of waning interest among consumers of daily deal promotions,” said Rice University’s Utpal Dholakia, co-author of “Daily Deal Fatigue or Unabated Enthusiasm?” “In fact, the more deals purchased by an individual, the more enthusiastic they seem to be.” Cornell University researchers also participated in the study.
“The study shows significant opportunity for growth among consumers, as only 16.7 percent of the research panel’s population has used daily deals before, and the majority of non-users (90.6 percent) haven’t bought a deal because of awareness or access issues,” a press release noted.
To read the complete new study and previous research papers by Dholakia on daily deal sites, visit www.ruf.rice.edu/~dholakia.