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Deals inside: examining restaurant operators’ motives when choosing whether to offer a flash-sale |
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| Authors: | James Brian Aday Kelly Virginia Phelan Swathi Ravichandran |
| Institution: | 1. Hospitality and Tourism Management, College of Business, San Francisco State University, San Francisco, CA, USA;2. UQ Business School, The University of Queensland, Brisbane, Australia;3. Hospitality Management, School of Foundations, Leadership and Administration, Kent State University, Kent, OH, USA |
| Abstract: | As restaurants are the primary hospitality business represented on flash-sale sites, this study examined motivations of restaurant managers when choosing whether to utilize the promotional mediums of flash-sales. Interviews were administered as a measurement instrument. Results demonstrated restaurants which have employed flash-sales are weary of the likelihood of success and believe the flash-sales brought in established customers. Non-users indicated hesitation towards adoption of flash-sales related to low profit margins per item in their operation and the percentage split of the sale price between the firm and flash-sale provider. Findings provide keen foundational insight into the flashsale phenomenon. |
| Keywords: | Flash-sales Groupon interviews LivingSocial restaurant marketing |