International Journal of Business and Economics Volume 15, No. 1 June, 2016

Does Online Group Buying Benefit or Destroy Retail Businesses?

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

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.

JEL Classifications：M19, M30, M100.

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