Deals fatigue refers to a phenomenon in which online daily deal seekers become overwhelmed with the number of online deal/coupon offerings and reduce their overall purchase of these coupons as a result. Deal fatigue may also be attributed to what consumers see as poor value when the deals do not turn out as they expected or they are unable to redeem them. Deals fatigue may also be known as daily-deal fatigue or Groupon fatigue.
The deal-of-day business model began in 2004 with Woot.com and began to gain ground in 2008, with the emergence of Groupon.com. However, many other companies quickly emerged, leading an explosion of online deals in 2010 and 2011. This rise is believed to be a major factor in causing deals fatigue.In 2011, online deal sites were believed to be on the decline. This was marked by Facebook’s August 2011 decision to shutter its Deals local-discount feature. Groupon was also seeing declining sales through the early part of 2011, leading to speculation that the group buying trend may have peaked. Most experts agree that daily deals will not disappear, but the deals fatigue phenomenon suggests that only a few of the many competitors in this space will survive over the long term.
Read More »