Communications of the ACM
Special Deals + Social Media = Profit?
The first large-scale analysis of the benefits of special deals through location-based social media networks found that such deals are not always a win-win situation for consumers and business owners.
Credit: University of Pittsburgh News
Offering special deals on social media networks is not always a win-win situation for consumers and business owners, according to researchers at the University of Pittsburgh and the Stevens Institute of Technology.
After conducting the first large-scale analysis of the benefits of special deals through location-based social media networks, the researchers reported the approach is not a reliable means of increasing patronage in isolation. The researchers collected data from more than 14 million venues over the course of seven months, and their analysis found a large number enjoyed an increase in check-ins during and after a special-deal period.
However, an almost equal number showed no increase, which suggests the benefits of special deals are contingent on outside features. The team says factors such as venue type, area population density, length of the offer, and the manner in which customers learn about deals can play a significant role in making this a worthwhile promotional strategy.
The researchers presented their study at the ninth annual International Association for the Advancement of Artificial Intelligence Conference on Web and Social Media in Oxford, England.
From University of Pittsburgh News
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