Let’s Make a “Deal”: How Deal Collectives Coproduce Unintended Value from Sales Promotions

Abstract

Users of deal collectives coproduce “deals” that yield value beyond what a marketer intends when offering promotions. The authors develop an understanding of how this unintended value is coproduced through the combined actions of users in deal collectives. Users are drawn to deal collectives by a web of motivations that include subversive shopper feelings, which reflect a desire to outsmart firms and temporarily upend the market power structure. Uncovered transvaluation processes show that deal forums—due to their collective knowledge, creativity, and trust—are more effective than individual consumers at identifying, developing, and vetting opportunities to capture unintended value. The authors further reveal that unintended value can stem from untargeted promotions, pricing and promotion errors, and combinations or stacking of promotions. Strategies for monitoring deal collectives and either discouraging or supporting their activities are offered.