IDEAS home Printed from https://ideas.repec.org/a/ijb/journl/v15y2016i1p1-16.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.15-1/pdf/vol_15-1-1.pdf
    Download Restriction: no
    File URL: https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.15-1/abstract/01.html
    Download Restriction: no
    ---><---

    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)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Sun, Shuxing & Zhang, Bin, 2022. "Operation strategies for nanostore in community group buying," Omega, Elsevier, vol. 110(C).
    4. 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).
    5. 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.
    6. Zhang, Guoquan & Shang, Jennifer & Yildirim, Pinar, 2016. "Optimal pricing for group buying with network effects," Omega, Elsevier, vol. 63(C), pages 69-82.
    7. 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).
    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. Longyuan Du & Ming Hu & Jiahua Wu, 2022. "Contingent stimulus in crowdfunding," Production and Operations Management, Production and Operations Management Society, vol. 31(9), pages 3543-3558, September.
    10. Bi, Gongbing & Geng, Botao & Liu, Lindong, 2019. "On the fixed and flexible funding mechanisms in reward-based crowdfunding," European Journal of Operational Research, Elsevier, vol. 279(1), pages 168-183.
    11. Yuecheng Yu & Alexander Pelaez & Karl R. Lang, 2016. "Designing and evaluating business process models: an experimental approach," Information Systems and e-Business Management, Springer, vol. 14(4), pages 767-789, November.
    12. Simone Marinesi & Karan Girotra & Serguei Netessine, 2018. "The Operational Advantages of Threshold Discounting Offers," Management Science, INFORMS, vol. 64(6), pages 2690-2708, June.
    13. Oksana Loginova & Andrea Mantovani, 2019. "Price competition in the presence of a web aggregator," Journal of Economics, Springer, vol. 126(1), pages 43-73, January.
    14. Jiahua Wu & Mengze Shi & Ming Hu, 2015. "Threshold Effects in Online Group Buying," Management Science, INFORMS, vol. 61(9), pages 2025-2040, September.
    15. O. Loginova & A. Mantovani, 2015. "Information and Online Reviews," Working Papers wp996, Dipartimento Scienze Economiche, Universita' di Bologna.
    16. Rong Zhang & Bin Liu, 2017. "Group buying decisions of competing retailers with emergency procurement," Annals of Operations Research, Springer, vol. 257(1), pages 317-333, October.
    17. Zhuoxin Li & Jason A. Duan, 2014. "Dynamic Strategies for Successful Online Crowdfunding," Working Papers 14-09, NET Institute.
    18. Upender Subramanian & Ram C. Rao, 2016. "Leveraging Experienced Consumers to Attract New Consumers: An Equilibrium Analysis of Displaying Deal Sales by Daily Deal Websites," Management Science, INFORMS, vol. 62(12), pages 3555-3575, December.
    19. Yongmin Chen & Tianle Zhang, 2015. "Interpersonal Bundling," Management Science, INFORMS, vol. 61(6), pages 1456-1471, June.
    20. Guanqun Ni, 2019. "A pricing model for group buying based on network effects," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-18, January.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ijb:journl:v:15:y:2016:i:1:p:1-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Szu-Hsien Ho (email available below). General contact details of provider: https://edirc.repec.org/data/cbfcutw.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.