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Group Buying: A Strategic Form of Consumer Collective

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  • Wang, Jeff Jianfeng
  • Zhao, Xin
  • Li, Julie Juan

Abstract

Existing literature on collective consumption focuses on passionate consumers of particular brands. This research examines group buying (GB), a multi-phase consumer collective activity, that creates value prior to, during and after the acquisition of products and services. Through a two-year, multi-sited, qualitative study, we examine both retailers’ and consumers’ motivations for participating in GB. GB is essentially a consumer collective that centers on consumer needs across brands, activities and lifestyles. This consumer collective is not initiated by brand affiliation or a consumption subculture, but by the need to discover desirable brands and obtain optimal products and services at favorable prices. Furthermore, GB empowers consumers to better protect their rights in an under-regulated market.

Suggested Citation

  • Wang, Jeff Jianfeng & Zhao, Xin & Li, Julie Juan, 2013. "Group Buying: A Strategic Form of Consumer Collective," Journal of Retailing, Elsevier, vol. 89(3), pages 338-351.
    • Handle: RePEc:eee:jouret:v:89:y:2013:i:3:p:338-351
    DOI: 10.1016/j.jretai.2013.03.001
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    References listed on IDEAS

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    Cited by:

    1. Qijun Qiu & Ying-Ju Chen & Benjamin P.-C. Yen, 2018. "The Implications of Group-Buying as a Channel Option Under Capacity Constraint," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(04), pages 1-32, August.
    2. Clauzel, Amélie & Guichard, Nathalie & Riché, Caroline, 2019. "Dining alone or together? The effect of group size on the service customer experience," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 222-228.
    3. Shen-Tsu Wang, 2016. "Analysis of Life Context of On-Line Group-Buying Population by Dynamic Decision," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 3(3), pages 173-181.
    4. Sun, Shuxing & Zhang, Bin, 2022. "Operation strategies for nanostore in community group buying," Omega, Elsevier, vol. 110(C).
    5. Kao, Karen C. & Rao Hill, Sally & Troshani, Indrit, 2021. "A cross-country comparison of online deal popularity effect," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    6. Tianhua Zhang & Juliang Zhang & Fu Zhao & Yihong Ru & John W. Sutherland, 2020. "Allocating resources for a restaurant that serves regular and group-buying customers," Electronic Commerce Research, Springer, vol. 20(4), pages 883-913, December.
    7. Lim, Weng Marc, 2020. "An equity theory perspective of online group buying," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    8. Bangwool Han & Minho Kim, 2019. "Hofstede’s Collectivistic Values and Sustainable Growth of Online Group Buying," Sustainability, MDPI, vol. 11(4), pages 1-15, February.
    9. Marin, Alejandra & Dass, Mayukh & Boal, Kimberly, 2019. "Critic-buyer effects on valuation of ambiguously appraised products," Journal of Business Research, Elsevier, vol. 103(C), pages 45-55.
    10. Huang, Yeu-Shiang & Ho, Jyh-Wen & Lee, Chang-Lin, 2024. "Group buying in multiple channels with consideration of heterogeneous customers," International Journal of Production Economics, Elsevier, vol. 270(C).
    11. Kaushal Mukherjee, 2016. "The Psychology of the Successful Entrepreneur," Post-Print hal-01484491, HAL.
    12. Tommy Cheung & Wai Hung Wong & Ricky S. Wong & Jia Zhu, 2016. "Does Online Group Buying Benefit or Destroy Retail Businesses?," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 15(1), pages 1-16, June.
    13. Camilla Barbarossa, 2014. "La comunicazione organizzativa interna nelle organizzazioni di consumo etico: alcune riflessioni sui gruppi di acquisto solidale," ESPERIENZE D'IMPRESA, FrancoAngeli Editore, vol. 2014(1), pages 109-124.
    14. Tong Che & Zeyu Peng & Zhongsheng Hua, 2016. "Characteristics of online group-buying website and consumers intention to revisit: the moderating effects of visit channels," Electronic Commerce Research, Springer, vol. 16(2), pages 171-188, June.
    15. Momin Mukherjee, 2017. "Entrepreneurial Judgment and Analysis for Successful Strategy Implementation," Post-Print hal-01592484, HAL.
    16. Yuan Lee & Insin Kim, 2019. "A value co-creation model in brand tribes: the effect of luxury cruise consumers’ power perception," Service Business, Springer;Pan-Pacific Business Association, vol. 13(1), pages 129-152, March.
    17. Zike Cao & Kai-Lung Hui & Hong Xu, 2018. "When Discounts Hurt Sales: The Case of Daily-Deal Markets," Information Systems Research, INFORMS, vol. 29(3), pages 567-591, September.
    18. Zhang, Guoquan & Shang, Jennifer & Yildirim, Pinar, 2016. "Optimal pricing for group buying with network effects," Omega, Elsevier, vol. 63(C), pages 69-82.
    19. Annette Popp Tower & Charles H. Noble, 2017. "Exploring and extending a collective open business model," AMS Review, Springer;Academy of Marketing Science, vol. 7(3), pages 170-182, December.
    20. Li, Jianfei & Li, Bei & Shen, Yang & Tang, Kun, 2022. "Study on the steady state of the propagation model of consumers’ perceived service quality in the community group-buying," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).

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