British Columbians are among the most savvy when it comes to finding deals through group discount sites like Groupon, but retailers should beware of the long-term impact of such services on their business.
A Vision Critical survey found British Columbians were the most aware of some of the most prominent group buying sites like Groupon (58%) compared with the national average (34%). Their awareness levels were higher than those in the U.S. and in the U.K., according to the three-country survey on group buying trends.
While those statistics are good for Groupon, they don’t necessarily bode well for companies that use their services.
The report suggested consumers using group buying sites are becoming even more price sensitive than they were before. Nearly two-thirds of group buying website users said they were more likely to think twice about buying a product or service at full price. About a third of Canadian men and 40% of British men said such websites ultimately harm the small businesses that participate in them. However, only 13% of Canadian women and 19% of British women felt the same way.
Business In Vancouver recently covered how some local businesses are handling the latest group buying craze (See “Retailers down on daily digital deals” – Issue 1107; January 11-17, 2011).