IDEAS home Printed from https://ideas.repec.org/a/kap/mktlet/v25y2014i4p425-434.html
   My bibliography  Save this article

A pricing model for group-buying auction based on customers' waiting-time

Author

Listed:
  • Mahyar Sharif Vaghefi
  • Mahrad Sharif Vaghefi
  • Neshat Beheshti

Abstract

Group-buying auction is a new business model in e-commerce. This auction has its own characteristics that make it distinct from other types of auctions. Customers' waiting time is an inherent attribute for group-buying auction. However, this attribute is rarely considered in the previous pricing models. Therefore, finding an appropriate pricing model for it seems to be of great importance. In this paper, with the help of game-theory concepts and according to each customer's waiting time in group-buying auction, a pricing model for a duopolistic market is proposed which takes into account both customers' and sellers' satisfaction. The pricing model shows that customers' awareness of Internet group-buying auction is so important and if it is lower than a boundary value, then the group-buying seller could not compete in the market. The model emphasizes on economies of scale as a significant factor in the success of the auction. The model also stresses the importance of gaining customers with lower product value in the group-buying auction. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Mahyar Sharif Vaghefi & Mahrad Sharif Vaghefi & Neshat Beheshti, 2014. "A pricing model for group-buying auction based on customers' waiting-time," Marketing Letters, Springer, vol. 25(4), pages 425-434, December.
    • Handle: RePEc:kap:mktlet:v:25:y:2014:i:4:p:425-434
    DOI: 10.1007/s11002-013-9262-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11002-013-9262-1
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11002-013-9262-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kopalle, Praveen & Biswas, Dipayan & Chintagunta, Pradeep K. & Fan, Jia & Pauwels, Koen & Ratchford, Brian T. & Sills, James A., 2009. "Retailer Pricing and Competitive Effects," Journal of Retailing, Elsevier, vol. 85(1), pages 56-70.
    2. 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.
    3. Garbarino, Ellen & Maxwell, Sarah, 2010. "Consumer response to norm-breaking pricing events in e-commerce," Journal of Business Research, Elsevier, vol. 63(9-10), pages 1066-1072, September.
    4. Ancarani, Fabio, 2002. "Pricing and the Internet:: Frictionless Commerce or Pricer's Paradise?," European Management Journal, Elsevier, vol. 20(6), pages 680-687, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.

    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. Fernandes, Teresa & Calamote, Ana, 2016. "Unfairness in consumer services: Outcomes of differential treatment of new and existing clients," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 36-44.
    2. Tripathi, Sanjeev, 2017. "Et tu, Brute? How unfair!," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 79-92.
    3. Oliver Hinz & Jochen Eckert, 2010. "The Impact of Search and Recommendation Systems on Sales in Electronic Commerce," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 2(2), pages 67-77, April.
    4. Kumar, V. & Sunder, Sarang & Sharma, Amalesh, 2015. "Leveraging Distribution to Maximize Firm Performance in Emerging Markets," Journal of Retailing, Elsevier, vol. 91(4), pages 627-643.
    5. Ibrahim Mohammed & Basak Denizci Guillet & Rob Law & Wassiuw Abdul Rahaman, 2021. "Predicting the direction of dynamic price adjustment in the Hong Kong hotel industry," Tourism Economics, , vol. 27(2), pages 346-364, March.
    6. Andreas Leibbrandt, 2016. "Behavioral Constraints on Pricing: Experimental Evidence on Price Discrimination and Customer Antagonism," CESifo Working Paper Series 6214, CESifo.
    7. Puccinelli, Nancy M. & Goodstein, Ronald C. & Grewal, Dhruv & Price, Robert & Raghubir, Priya & Stewart, David, 2009. "Customer Experience Management in Retailing: Understanding the Buying Process," Journal of Retailing, Elsevier, vol. 85(1), pages 15-30.
    8. Hyun Joung Jin & Eun Young You, 2019. "Do Discounts in Ticket Prices Induce Sustainable Profit to Performing Arts Suppliers?," Sustainability, MDPI, vol. 11(14), pages 1-12, July.
    9. Shankar, Venkatesh & Inman, J. Jeffrey & Mantrala, Murali & Kelley, Eileen & Rizley, Ross, 2011. "Innovations in Shopper Marketing: Current Insights and Future Research Issues," Journal of Retailing, Elsevier, vol. 87(S1), pages 29-42.
    10. Faqih, Khaled M.S., 2016. "An empirical analysis of factors predicting the behavioral intention to adopt Internet shopping technology among non-shoppers in a developing country context: Does gender matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 140-164.
    11. Zhang, Ke & Hou, Yuansi & Li, Gang, 2020. "Threat of infectious disease during an outbreak: Influence on tourists' emotional responses to disadvantaged price inequality," Annals of Tourism Research, Elsevier, vol. 84(C).
    12. Fedoseeva, Svetlana & Grein, Theresa & Herrmann, Roland, 2017. "How German Online Retailers Price Foods: An Empirical Analysis for Chocolate Products," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 8(1), pages 1-13, January.
    13. Tomasz Galewski, 2015. "Book price dispersion in Polish online bookstores," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 36, pages 499-510.
    14. Dixit, Ashutosh & Whipple, Thomas W. & Zinkhan, George M. & Gailey, Edward, 2008. "A taxonomy of information technology-enhanced pricing strategies," Journal of Business Research, Elsevier, vol. 61(4), pages 275-283, April.
    15. Richards, Timothy J. & Gómez, Miguel I. & Pofahl, Geoffrey, 2012. "A Multiple-discrete/Continuous Model of Price Promotion," Journal of Retailing, Elsevier, vol. 88(2), pages 206-225.
    16. Chen, Xu & Wang, Xiaojun, 2015. "Free or bundled: Channel selection decisions under different power structures," Omega, Elsevier, vol. 53(C), pages 11-20.
    17. Xin Li & Kenan Li & Yongjian Li, 2023. "Platform Operations under Dual-Channel Catering Supply Chain," Mathematics, MDPI, vol. 11(16), pages 1-33, August.
    18. 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.
    19. Arthur M. Geoffrion & Ramayya Krishnan, 2003. "E-Business and Management Science: Mutual Impacts (Part 2 of 2)," Management Science, INFORMS, vol. 49(11), pages 1445-1456, November.
    20. Gelbrich, Katja, 2011. "I Have Paid Less Than You! The Emotional and Behavioral Consequences of Advantaged Price Inequality," Journal of Retailing, Elsevier, vol. 87(2), pages 207-224.

    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:kap:mktlet:v:25:y:2014:i:4:p:425-434. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.