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Does Online Group Buying Benefit or Destroy Retail Businesses?

Author

Listed:
  • Tommy Cheung

    (Department of Supply Chain and Information Management, Hang Seng Management College, Hong Kong)

  • Wai Hung Wong

    (Department of Supply Chain and Information Management, Hang Seng Management College, Hong Kong)

  • Ricky S. Wong

    (Department of Supply Chain and Information Management, Hang Seng Management College, Hong Kong)

  • Jia Zhu

    (School of Computer Science, South China Normal University, China)

Abstract

There is Before adopting a group buying strategy, retailers need to recognize the role of group buying and whether this strategy is beneficial or detrimental. Our data are a product of surveys from over 200 customers. The results revealed that group buying agent is beneficial to retailers. They supported our hypotheses that group buying is an effective promotion tool for retailers in expanding their customer base. Our research also showed that customer satisfaction positively influences repeated purchases through group buying agents and future purchases with retailers at regular price.

Suggested Citation

  • 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.
    • Handle: RePEc:ijb:journl:v:15:y:2016:i:1:p:1-16
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    References listed on IDEAS

    as
    1. Ailawadi, Kusum L. & Beauchamp, J.P. & Donthu, Naveen & Gauri, Dinesh K. & Shankar, Venkatesh, 2009. "Communication and Promotion Decisions in Retailing: A Review and Directions for Future Research," Journal of Retailing, Elsevier, vol. 85(1), pages 42-55.
    2. 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.
    3. Dumrongsiri, Aussadavut & Fan, Ming & Jain, Apurva & Moinzadeh, Kamran, 2008. "A supply chain model with direct and retail channels," European Journal of Operational Research, Elsevier, vol. 187(3), pages 691-718, June.
    4. Krishnan S. Anand & Ravi Aron, 2003. "Group Buying on the Web: A Comparison of Price-Discovery Mechanisms," Management Science, INFORMS, vol. 49(11), pages 1546-1562, November.
    5. Xiaoqing Jing & Jinhong Xie, 2011. "Group Buying: A New Mechanism for Selling Through Social Interactions," Management Science, INFORMS, vol. 57(8), pages 1354-1372, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    customer satisfaction; group buying; retail;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

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