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Group buying

About: Group buying is a research topic. Over the lifetime, 630 publications have been published within this topic receiving 8223 citations.


Papers
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Journal ArticleDOI
TL;DR: This work derives the monopolist's optimal group-buying schedule under varying conditions of heterogeneity in the demand regimes, and compares its profits with those that obtain under the more conventional posted-price mechanism.
Abstract: Web-based group-buying mechanisms are being widely used for both business-to-business (B2B) and business-to-consumer (B2C) transactions. We survey currently operational online group-buying markets, and then study this phenomenon using analytical models. We build on the literatures in information economics and operations management in our analytical model of a monopolist offering Web-based group-buying under different kinds of demand uncertainty. We derive the monopolist's optimal group-buying schedule under varying conditions of heterogeneity in the demand regimes, and compare its profits with those that obtain under the more conventional posted-price mechanism. We further study the impact ofproduction postponement by endogenizing the timing of the pricing and production decisions in a two-stage game between the monopolist and buyers. Our results have implications for firms' choice of price-discovery mechanisms in e-markets, and for the scheduling of production and pricing decisions in the presence (and absence) of scale economies of production.

388 citations

Journal ArticleDOI
TL;DR: The results suggest that reciprocity, trust, satisfaction, and seller creativity provide considerable explanatory power for intention to engage in online group buying behavior.

354 citations

Journal ArticleDOI
TL;DR: A model of GBW stickiness is developed using the e-commerce success model and commitment-trust theory, which indicated that relationship commitment, trust, and satisfaction were key determinants of stickiness intention.

267 citations

Patent
18 Nov 2010
TL;DR: In this paper, a number of sets of methods and apparatuses applicable to online shopping are disclosed, including bin packing methods with approximate membership and flash mob shopping, which allows sellers and a (spontaneous) group of shoppers to connect on prices without requiring shoppers' hard commitments, and with sellers revealing only necessary price information.
Abstract: A number of sets of methods and apparatuses applicable to online shopping are disclosed. One set, “Bin Packing Methods with Approximate Membership”, includes methods in pricing and auctioning a bundle of items, some of which could belong to another bundle. Significantly, the membership of a bundle, during pricing and auction, could change. Another set, the “Shopping Console”, puts a structure into the online shopping experience, so that through one interface various shopping activities can be facilitated, including but not limited to researching, pricing, negotiation, group buying, and tracking of purchases. Still another set, “Flash Mob Shopping”, allows sellers and a (spontaneous) group of shoppers to connect on prices without requiring shoppers' hard commitments, and with sellers revealing only necessary price information.

237 citations

Posted Content
TL;DR: It is argued that Group Buying allows a seller to gain from facilitating consumer social interaction, i.e., using a group discount to motivate informed customers to work as “sales agents” to acquire less-informed customers through interpersonal information/knowledge sharing.
Abstract: This paper examines a unique selling strategy, Group Buying, under which consumers enjoy a discounted group price if they are willing and able to achieve a required group size and coordinate their transaction time. We argue that Group Buying allows a seller to gain from facilitating consumer social interaction, i.e., using a group discount to motivate informed customers to work as “sales agents” to acquire lessinformed customers through interpersonal information/knowledge sharing. We formally model such an information-sharing effect and examine if and when Group Buying is more profitable than (1) traditional individual selling strategies, and (2) another popular social interaction scheme, Referral Rewards programs. We show that Group Buying dominates traditional individual selling strategies when the information/knowledge gap between expert and novice consumers is neither too high nor too low (e.g., for products in the mid-stage of their life cycle) and when inter-personal information sharing is very efficient (e.g., in cultures that emphasize trust and group conformity, or when implemented through existing online social networks). We also show that, unlike Referral Rewards programs, Group Buying requires information sharing before any transaction takes place, thereby increasing the scale of social interaction but also incurring a higher cost. As a result, Group Buying is optimal when interpersonal communication is very efficient, or when the product valuation of the less-informed consumer segment is high.

229 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20238
202218
202114
202022
201929
201831