The psychology of the social shopper

Abstract

In the space of a few years, the daily deals industry has grown exponentially — LivingSocial, for example, has over 75 million members worldwide. One reason for the industry’s rapid growth is the behaviour of the social shopper: members purchase as a group, they have a fear of missing out, they purchase quickly, and the results are normally dramatic and immediate. This paper looks at the reasons for such purchasing behaviour, how it relates to social networks and the best ways that local and national brands can benefit from it.