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UPON DEVELOPING ONLINE GROUP BUYING – A CASE STUDY APPROACH
Abstract Introduction
With the rapid development of the Internet, many With the rapid development of the Internet, many
innovative and exciting business models have innovative and exciting business models have
emerged and one of such exciting model is group emerged and one of such exciting model is group
buying. Group buying is offered by a group buying buying. The Internet-based group buying was first
web site which acts as an intermediary between seller introduced in late 90s (Kauffman and Wang, 2001).
and buyers. In group buying, a seller presents In a short time, lots of group buying web sites have
reduced group rates to encourage individual evolved and spread throughout the world (Erdogmus
customers to make purchases in groups. American and Cicek, 2011). In this model, a group buying web
web site Groupon.com is one of the established site comes as an intermediary between sellers
players in the online grouping phenomenon and (producers, local retailers and service providers) on
which has launched its operations in US in 2008. In one side and buyers (customers) on the other side.
India, group buying online market is still a novel Sellers offer discounted group rates to encourage
approach. As a result, there is not sufficient literature individual customers purchasing through group
on this theme. Therefore, the aim of this study is to buying. As a consequence, a lower price occurs in the
analyse the concept of group buying and how it is group buying. Group buying phenomenon provides
used to change idea of e-retailing in India by means advantages to both consumers and sellers. Consumers
of a case study approach. benefit from being able to access discounts on
convincing products, services and experiences.
Key words: Group buying, online, Groupon, Sellers are benefited by being able to reach out to
business model new customers and promote their business to a
broader prospects or consumers. These group buying
Dr. Sita Mishra, Associate Prof. (Marketing) websites leverage collective buying power to get
Institute of Management Technology, huge discounted services or products which are only
Rajnagar, Ghaziabad made available for a short period of time and
generally require a minimum number of buyers to
purchase in order to be activated. Existence of group
purchasing organizations is widely present in food
services and health care (Mitchell 2002). With the
global recession, the consumers have faced a
decreasing purchasing power and have used the
advantages of the internet to group together and to
strengthen their position against the sellers with the
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Abstract Introduction
With the rapid development of the Internet, many With the rapid development of the Internet, many
innovative and exciting business models have innovative and exciting business models have
emerged and one of such exciting model is group emerged and one of such exciting model is group
buying. Group buying is offered by a group buying buying. The Internet-based group buying was first
web site which acts as an intermediary between seller introduced in late 90s (Kauffman and Wang, 2001).
and buyers. In group buying, a seller presents In a short time, lots of group buying web sites have
reduced group rates to encourage individual evolved and spread throughout the world (Erdogmus
customers to make purchases in groups. American and Cicek, 2011). In this model, a group buying web
web site Groupon.com is one of the established site comes as an intermediary between sellers
players in the online grouping phenomenon and (producers, local retailers and service providers) on
which has launched its operations in US in 2008. In one side and buyers (customers) on the other side.
India, group buying online market is still a novel Sellers offer discounted group rates to encourage
approach. As a result, there is not sufficient literature individual customers purchasing through group
on this theme. Therefore, the aim of this study is to buying. As a consequence, a lower price occurs in the
analyse the concept of group buying and how it is group buying. Group buying phenomenon provides
used to change idea of e-retailing in India by means advantages to both consumers and sellers. Consumers
of a case study approach. benefit from being able to access discounts on
convincing products, services and experiences.
Key words: Group buying, online, Groupon, Sellers are benefited by being able to reach out to
business model new customers and promote their business to a
broader prospects or consumers. These group buying
Dr. Sita Mishra, Associate Prof. (Marketing) websites leverage collective buying power to get
Institute of Management Technology, huge discounted services or products which are only
Rajnagar, Ghaziabad made available for a short period of time and
generally require a minimum number of buyers to
purchase in order to be activated. Existence of group
purchasing organizations is widely present in food
services and health care (Mitchell 2002). With the
global recession, the consumers have faced a
decreasing purchasing power and have used the
advantages of the internet to group together and to
strengthen their position against the sellers with the
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