Does Online Group Buying Benefit or Destroy Retail Businesses?

Tommy Cheung, Wai Hung Wong, Ricky S. Wong and Jia Zhu
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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

International Journal of Business and Economics, 2016, vol. 15, issue 1, 1-16

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.

Keywords: customer satisfaction; group buying; retail (search for similar items in EconPapers)
JEL-codes: M10 M19 M30 (search for similar items in EconPapers)
Date: 2016
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