Deal is on! Why people buy from daily deal websites

We present two studies examining daily deal websites. In the first, we see whether revealing deal size influences choice, and consider the effect of desire for conformity/uniqueness. In the second, we determine the impact discounting levels have on quality perceptions and purchase likelihood, while considering the influence of brand familiarity and offer type. We find the bandwagon/snob effect can influence purchase likelihood. The results also suggest that heavy discounts have a negative impact on quality perceptions, and that brand familiarity and offer type may affect quality perceptions and purchase likelihood. Retailers seeking brand exposure should act cautiously regarding discount levels, and exclusive brands may not be suitable.