Group Buying Research Articles

E-tailer’s supply chain structures in group buying: Monopolistic or competitive retailing?

ABSTRACT We investigate the design of online group buying considering consumer characteristics under two different supply chain structures. Under monopolistic retailing, the e-tailer sells products through individual buying and group buying options simultaneously. Under competitive retailing, two e-tailers sell products through individual buying and group buying options respectively. We employ a stylized game-theoretical model to investigate equilibrium pricing and group size threshold decisions under two supply chain structures, and characterize the e-tailer’s optimal supply chain structure as well as study its impacts on the manufacturer and consumers. We show that the e-tailer always prefers a relatively high (high or low) group size threshold in the monopolistic (competitive) supply chain. Moreover, we find that the e-tailer chooses the monopolistic or competitive supply chain structure depending on combined parameters. Consequently, the e-tailer’s optimal supply chain structure may lead to an all-win or all-loss situation for the manufacturer and consumers. Our results underscore the importance in pricing and threshold decisions for online group buying and provide managerial insights for the group buying industry.

A STUDY TO MEASURE SATISFACTION OF VEGETABLE CUSTOMERS IN GUJARAT DURING LOCKDOWN PERIOD

This paper examines the perceived satisfaction of customers of vegetables during lockdown period of 2020 because of covid 19 in Gujarat state of India. A sample of 380 customers were surveyed using structured questionnaire and analysed using statistics like descriptive analysis, t – test, ANOVA test and factor analysis. The factor analysis reduced variables from 12 to 4. The four categories are price and promotional offers, variety, off season and origin, quality, freshness, hygiene and production and appearance and packaging. Demographic analysis is done for various factors. Gender, age and place of purchase groups didn't show significant difference of satisfaction while, education, income, time of purchase and frequency of purchase has shown significant differences of satisfaction for various groups. The results may help the decision makers to serve consumers better. The findings may also be useful for further researchers.

A new mechanism for purchasing through personal interactions: fairness, trust and social influence in online group buying

PurposeThe purpose of this article was to explore the influence of individual perception and social climate on consumer-initiated group-buying purchase decisions. An extended cross-level research model was used to explain how a new mechanism for purchasing through personal interactions could work.Design/methodology/approachThis study utilised a questionnaire survey for data gathering. The subjects of the investigation were group-buying initiators. Hierarchical linear modelling (HLM) was used to experimentally examine the research hypotheses.FindingsThe empirical results of the study indicate that the social influence of critical mass can effectively promote positive attitudes and intentions towards consumer-initiated online group buying. An individuals' perception of an initiator's fairness influences their trust in the initiator. In addition, trust in the initiator can positively and significantly influence buyers' attitudes and intentions to online group buying.Originality/valueMost previous studies on online group-buying focus on how social media influences group-buying behaviours. This study extends social media research by introducing an extended cross-level model to provide a comprehensive investigation into online-shopping. It is a preliminary attempt to systematically verify relationships at the individual and aggregate levels. The decision to group buying requires a relationship of trust to be formed before any transaction takes place, thereby increasing the intention to make a purchase. As a result, group buying is perceived as positive when interpersonal communication is very efficient, or when social influence is high.

Rural sustainability and food choice: the effect of territorial characteristics on the consumers\u2019 preferences for organic lentils

The importance of pulse cultivation and consumption is recognized by the scientific community in terms of human nutrition, food security, biodiversity and a valid substitute for animal protein. In some marginal areas, pulse cultivation represents also a protection against the abandonment of agricultural land, the preservation of traditional landscape and the maintenance of natural environments, besides contributing to the safeguard of traditional gastronomy and culture.This study explores how some characteristics connected with rural sustainability, like the preservation of the traditional rural landscape, production area in a Natura 2000 Site of Community Importance (SCI) and EU quality labels (PDO and PGI), might influence organic consumers’ choice of lentils. Data were collected in the Umbria region (Italy) in 2014 by interviewing 213 consumers’ members of Organic Solidarity Purchase Groups (O-SPGs). The Discrete Choice Experiment methodology was used, and three different models (Multinomial Logit Model (MNL), Mixed Logit Model (RPL) and Endogenous Attribute Attendance (EAA)) were applied to verify the reliability of the estimates. Attribute non-attendance (ANA) behaviour was taken into account. Results reveal that the presence of ANA had an impact on both the relative importance of the estimated attributes and the magnitude of the estimated mean WTP. Therefore, this study suggests that WTP mean estimates should be considered with caution for marketing purposes if ANA is not considered. Looking at pulses, the results help to understand the importance in monetary terms of the relationship between lentil choice and rural sustainability.

Revenue sharing-commission coordination contract for community group buying supply chain considering promotion effort

As a novel retail model in the age of Internet Plus, community group buying (CGB) has received a growing attention from the public. This paper introduces promotion effort (PE) and service level (SL) into system decision-making, and tries to coordinate the CGB supply chain comprising of a supplier, a group buying platform, and a group leader. Firstly, the authors constructed a decentralized decision-making model and a centralized decision-making model for the CGB supply chain, and solved the optimal decisions and profits of each model. On this basis, a coordination mechanism was designed for the CGB supply chain. After that, the model results were verified through numerical simulation. The results show that: Under the decentralized decision-making model, the wholesale price, retail price, platform SL, and leader’s PE are positively correlated with the elastic coefficient of PE, and negatively with the effort cost; under the centralized decision-making model, the retail price, platform SL, and leader’s PE are positively correlated with the elastic coefficient of SL, and negatively with the service cost; using the group leader’s commission as a coordination tool and combining with the traditional revenue sharing contract, the revenue sharing-commission coordination (RS-CC) contract is designed to realize the coordinated operation of the CGB supply chain. The research findings further enrich and improve the theoretical basis of the CGB supply chain, and provide a reference for the decision-making by relevant enterprises.

Fostering ethical consumption in food sector: Insights from the Italian Solidarity Purchasing Groups

PurposeThe paper aims at investigating antecedents and predictors of consumers' buying and consumption processes within the Italian Solidarity Purchasing Groups (SPGs) to enrich current debate about drivers and levers on which act for fostering ethical consumption in food sector.Design/methodology/approachBuilding upon the theory of planned behavior (TPB) a theoretical model is proposed for depicting possible antecedents and predictors of consumers' buying and consumption processes in food sector. The validity of the model has been tested via partial least squares structural equation modeling (PLS-SEM) using SmartPLS for analyzing primary data collected through a structured questionnaire from 354 consumers engaged in SPGs.FindingsWithin the domain of food buying and consumptions through SPGS, results show that consumers' behavior intention (BI) is influenced by consumers' attitude (ATT) and perceived behavioral control (PBC). Moreover, the research also demonstrates that consumers' ATT is influenced by consumers' ethical self-identity (ETH), consumers' willingness to support local economy (SLE), and food safety concern (FSC).Originality/valueThe study contributes to the ongoing debate on sustainable consumerism focusing the attention on SPGs as emerging social organizations inspired by ethical food consumption. Both theoretical development and empirical evidences enrich current knowledge about drivers and levers on which act for fostering ethical consumption in food sector.

Analyzing Social Event Participants for a Single Organizer

Online social networking services allow people to initialize various kinds of offline social events (e.g., cocktail parties, group buying, and study groups), and invite friends or strangers to participate the events in either manual or collaborative manners. However, such invitation manners are tediously long, and irrelevant, uninterested and even spammers can unexpectedly be added into the event. In this paper, we aim at investigating the characteristics of social events participants for a specific organizer. Specifically, we are wondering how social network, user profiles and geo-locations affect user participation when the social event is held by a single organizer. An extensive analysis has been conducted on the real-world event-based social network Meetup dataset. The results of data analysis also demonstrate that these factors actually influence users' event participation.

Customer behavior of online group buying: an investigation using the transaction cost economics theory perspective

Customer behavior of online group buying: an investigation using the transaction cost economics theory perspective

Exploring the economic, social, and environmental dimensions of community-supported agriculture in Italy

The diffusion of community supported agriculture (CSA) in Italy is a very recent phenomenon. The purpose of this paper is to investigate the current status and the evolution of this reality, understanding the social, environmental, and economic benefits for CSA members and the local context. Based on access to CSA data and participant observation during a CSA meeting, a thematic network analysis was adopted to analyse a large piece of information spanning from social, economic, and environmental topics as well as existing relationships between different CSA. Later, we interviewed CSA representatives about CSA production structure and several issues concerning their sustainability, including the role played by CSA members; the economic self-sufficiency; the environmental impact associated with food production. Findings highlighted that in general, the CSA phenomenon in Italy meets sustainability goals, even with different levels of members' involvement, working conditions, economic viability, and environmental impact from a community to one another, with desirable further improvements along all dimensions for most of them. Social transformations in which consumers take the role of producers and consumers at the same time with increased responsibility have been observed. In this context, the members' degree of responsibility contributes to distinguishing CSA in its full sense from CSA initiatives somehow started as ethical purchasing groups, with lower levels of commitment by members, then trying to trigger a higher involvement. The lack of policy support is containing further CSA diffusion and consolidation: new mechanisms are necessary at least to figure out, recognise, and reward the mitigation of environmental impacts characterising local food production and distribution.

Apulia agro-biodiversity between rediscovery and conservation: the case of the «Salento km0» network

Green Revolution and the birth of the current global economic system had two opposite, subsequent effects. If, initially, they led to processes of crop homogenization, seasonal adjustment, homogenization of the landscape and markets standardization, they have subsequently pushed local communities towards a recovery of endemic biodiversity at risk of extinction because of such planetary processes, as well as a fundamental element in terms of local development, food security and sovereignty and reduction of environmental impacts. Starting from these instances of recovery and protection, which are increasingly taking place in Apulia, this work will examine both projects created "from above" and initiatives "from below", being the latter the result of a new consciousness that renews social cohesion and gives new value to the territorial milieu. In this regard, the case of the Salento km0 network will be examined: born in 2011 and now made up of 61 local subjects including producers, restaurateurs, associations, ethical purchasing groups and traditional stores, which represent a key symbol of a territory that resists and a population that has chosen to stay and innovate according to economic, social, cultural and environmental sustainability.

ОРГАНІЗАЦІЯ УПРАВЛІННЯ МАРКЕТИНГОВОЮ ДІЯЛЬНІСТЮ ПІДПРИЄМСТВА СІЛЬСЬКОГОСПОДАРСЬКОГО МАШИНОБУДУВАННЯ НА ВНУТРІШНЬОМУ ТА ЗОВНІШНЬОМУ РИНКАХ

The strengthening of the role of an effective organization of marketing management for agricultural engineering enterprises in Ukraine is due to an increase in competitive pressure from domestic and foreign producers who offer functional analogues, as well as from importers of used equipment, a decrease in the capacity of the domestic market due to the crisis in economy and the loss of control over a part of occupied territories of Ukraine. Analysis of the peculiarities of organizing marketing activities on the example of one of the largest enterprises of agricultural engineering in Ukraine, CJSC “Umanfermmash”, showed that on the domestic market it mainly focuses on small and medium-sized agricultural enterprises, farms, private entrepreneurs providing services of the processing of land plots to the population, and its product and pricing policy in the current marketing strategy corresponds to the described group of potential buyers, which indicates the feasibility of its application in the future. The conducted research revealed a number of problems in the organization of marketing activities of CJSC “Umanfermmash”: low quality of feedback from end users, especially foreign ones, in the context of bringing product characteristics to their needs; insufficient presentation of information about various aspects of the company's activities on its website; narrowing of cooperation with distributors, which negatively affected the effectiveness of sales activities; insufficient attention to quality improvement, which sometimes deteriorates due to the use of cheaper raw materials and materials. Improving the organization of CJSC “Umanfermmash” marketing activities management initially requires adjusting the existing marketing strategy, which should be differentiated. So, for the foreign market, it should be based on an attacking concept, and for the domestic market it should be realized as supportive marketing. In the first case, there should be an active, aggressive position of the company in the market, which is aimed at gaining and expanding the market share, and in the second, – it involves maintaining the level of demand in the market that is optimal for the enterprise

Research on the Community Group Buying Marketing Model of Fresh Agricultural Products in Jilin Province from the Perspective of Internet Marketing and Retail

Under the “Internet +” environment, fresh food operators in Jilin Province are facing new opportunities. The new retail model has obvious advantages in the sale of fresh agricultural products. There are mainly two models of “community store + platform shopping” and “community group buying + centralized pickup.” There are still some problems in the community marketing of fresh agricultural products in Jilin Province. The business model can be improved by improving the logistics and distribution system of fresh agricultural products, promoting fresh agricultural products standards, strengthening supervision and management, actively introducing talents, broadening financing channels, and cultivating markets. Improve measures such as guiding the establishment of new consumption habits.

The economic and environmental sustainability of extra virgin olive oil supply chains: An analysis based on food miles and value chains

Following the growing trend towards globalisation of the agrifood system over the last few years, a number of scientific publications with different aims and methodological approaches have addressed the issue of the progressive link loss between the place of consumption and production of food. In part, thescientific debate has focused on the various agri-food production commercial outlets, highlighting the strengths and weaknesses of both the dominant models like mass market retail, as well as emerging models like solidarity purchasing groups The present study can be classified as concerning the sustainability of agri-food supply chains. It compares five different extra virgin olive oil (evoo) supply chains in terms of the distance between the agricultural producer and end consumer, from both an economic perspective (the number of intermediaries) and a geographical one (production and consumption places). The examined aspects are 1) all the supply chain segments in which value is added to what will be the final food product purchased by the consumer, with a focus on trade and the transport cost estimated in relation to food miles; 2) the environmental impact of transport along the entire supply chain up to the distribution of evoo to the final consumer; and 3) the trade-offs between the environmental impact and economic results.The results obtained confirm some existing general evidence in the literature, such as the greater enhancement of agricultural products through short supply chains, and they emphasize as combining the value chain results with the environmental impact based on FMs, no real trade-offs, but rather trends, emerge.

Between flowers and fears: the new coronavirus pandemic (COVID-19) and the flower retail trade

Abstract In order to support a better understanding of the current scenario of the crisis installed by the New Coronavirus (SARS-CoV-2: COVID-19) in the flower retail trade, it is presented a descriptive exploratory research carried out between April and May 2020 with 30 flower shop managers located in the Southern region of Brazil. The results showed that the most significant impacts were the drop in the number of customers, which reduced the company’s income when compared to the values sold before the pandemic, and that the pandemic scenario generated a 45.3% reduction in financial transactions on average. Among the flower shops in this survey, 70% of flower shops were closed for an average of 21.4 days, when they were reopened with restrictions on attendance related to hours or the number of people inside the stores. The e-commerce and social media were the main tools to confront this situation, and the most used Apps were WhatsApp and Instagram. But other actions such as discounting on purchases by quantity, free delivery and marketing in the surrounding were also registered. Among the possible complementary actions in order to face this crisis and which can have positive effects, it is highlighted the online courses directed to the trade of gardening kits, the adoption of the Just In Time (JIT) methodology that can result in partnerships with local producers in order to reduce inventory costs and purchase prices, and the organization of collective purchasing groups to bargain prices with wholesalers, as well as the reduction of transportation and operational costs at Veiling in Holambra.

Sustainable Development of Online Group-Buying Websites: An Integrated Perspective of ECM and Relationship Marketing

Online group buying (OGB) is a unique, innovative, and interesting online business model that seems to have a bright future. However, many group buying websites (GBWs) have not stood the test of time. Different from traditional e-commerce websites, GBWs create a rich value experience for consumers, but no research has explored how these benefits help GBWs achieve sustainable development. In this study, the expectation confirmation model (ECM) and relationship marketing are integrated to explore how these multi-dimensional perceived values influence relationship quality (satisfaction and relationship commitment) and ultimately shape loyalty (continuous intention and positive electronic word of mouth (eWOM)). The research model and hypotheses are empirically tested with 278 valid responses using partial least squares-structural equation modeling (PLS-SEM). The results show that satisfaction (SAT) and relationship commitment (RC) are primary antecedents of continuous intention (CI) and positive eWOM (PE). We found interesting differences in the effects of multi-dimensional perceived values on relationship quality and loyalty. Hedonic value can help GBWs improve relationship quality and directly promote the spread of PE, thus attracting new users. Utilitarian value can only increase satisfaction and directly affect CI, helping GBW retain existing users. Social value cannot improve user satisfaction, but it can help GBW develop long-term emotional connections with users and indirectly shape user loyalty. Finally, the implication, limitations, and future research directions are described.

Food System Resilience during COVID-19 Pandemic: The Case of Roman Solidarity Purchasing Groups

The restriction measures linked to the COVID-19 shock suddenly highlighted the vulnerability of most socioeconomic systems, including the food sector. In a context in which the limitation to the movement of people and goods has put the longer and more structured supply chains in serious difficulty, many experiences and initiatives have emerged as viable alternatives. The aim of the research was to understand if and how the Solidarity Purchasing Groups (SPG) of Rome have contributed to the resilience of the food system of the metropolitan city during the lockdown. The research was based on the results of a questionnaire administered to the SPGs of Rome during the first period of the pandemic (April–July 2020), enriched by some in-depth interviews carried out by the authors. What emerged was that, despite the limited extent in terms of products conveyed within the whole food system, the SPGs represented an important food supply channel during the lockdown period, for two main reasons: a greater flexibility and agility in moving and in handling goods and the possibility of remunerating local farms, contributing to the resilience of the local agri-food fabric. The analysis of the results confirms the strong vitality of such Food Movements in Rome and, at the same time, allows for the identification of a series of interventions that the institutions could adopt to favor the spread of a food environment more compatible with more sustainable and fairer forms of food production and distribution.

Research on Pricing Models and Strategies of Online Group-Buying

In recent years, the Online Group-Buying has entered a state of development in full swing. The particularity of the OGB platform compared with the traditional market determines that its marketing and price setting model must be different from the traditional market. Based on the summary of domestic and foreign scholars’ literature on the pricing and strategy research of group buying business models, this article analyzes various factors affecting group buying prices. Under various assumptions, parameters and variables, through mathematical calculation and analysis, the optimal price and maximum profit for the healthy development of the enterprise are obtained, and how the merchants on the group buying website should adopt corresponding price-setting strategies and profit models to made some suggestions.

Consumer response towards personalised pricing strategies in online marketing

E-tailers are now capable of customising prices for an individual buyer or a group of buyers who exhibit similar behavioural traits and perceived ability to pay. Tailoring prices based on personal information may evoke unanticipated reactions as it could infringe user's privacy and hurt fair price perceptions. To investigate the potential impact of positive and negative online personalised pricing situations, this study conducted a controlled experiment to observe the changes in consumer behaviour in a personalised pricing context. Seven hundred and twenty responses were collected from thriving online-active communities in India and Malaysia, both countries with high growth of e-commerce activities. Consumers' reaction towards fair price, customer loyalty, privacy concern, purchase satisfaction; and the influence of these constructs on post purchase behaviours such as repurchase intentions, revenge intentions and strategic purchase intentions were analysed using PLS SEM modelling. Results indicate online consumers in both countries have high privacy concerns, and as it increased, their repurchase intentions decreased correspondingly. Strategic purchase intentions and revenge intentions increased regardless of positive and negative purchase situations, while purchase satisfaction mediates fair price perceptions and repurchase intentions.

The Success of Plain People’s Produce Auctions and Partnership with Missouri Extension

The number of produce auctions led by plain Anabaptist producers has surged since the mid-1990s. Typically grower-owned, these businesses are centralized facilities providing a wholesale market to area growers for a diverse group of buyers. For growers seeking an adequate living from growing produce, these facilities help reduce marketing time and product transportation, and provide frequent sales events that guarantee payment. As such, they have developed into a solid and long-standing market for local produce. However, plain growers have experienced challenges trying new crops or scaling up production. This article details how Missouri Extension assisted plain farmers with their challenges through modifications needed for effective engagement. Outreach efforts have been reminiscent of Extension in the earlier part of the twentieth-century, which employed farm visits and tours, direct mailings, and small group gatherings. Service delivery focus has included pest control, produce food safety, effective communication, and business innovation. Extension also worked with the Clark, Missouri, produce auction to adapt to challenges presented by the new federal food safety requirements. An analysis using the U.S. Census of Agriculture data documents that farms associated with produce auctions became critical to fresh vegetable production in Missouri. Market share doubled from 2007 to 2017 (from 13% to 26%). This demonstrates that the auction infrastructure has become a regionally important supply chain channel for fresh produce. [Abstract by authors.]

Green Product Market Development Strategy of Mobile Network Group Buying Community: Based on Three‐Party Evolutionary Game and Simulation Analysis

With the advent of the 5G era, the mobile network group buying community dominated by focusing on social relations shows great development potential. However, in the mobile network group buying community, the mixed information makes the information environment of the community more complex. Information asymmetry will lead to “mistakes” in consumers’ choice, making it impossible for some important markets to be fully developed. Considering the gains and losses of three interest subjects—governments, enterprises, and consumers in the green product market under information symmetry, in this paper, an evolutionary game model involving governments, enterprises, and consumers was built. Numerical experiments and simulation were performed using SciPy, a scientific computing library of Python, to study the main factors influencing the healthy development of the green product market. The research results showed under information symmetry, when the governments’ benefit from increased government credibility was higher than the cost of governments for screening the information of enterprises’ products and identifying the green products, the expected fine of enterprises for producing high carbon products was higher than the difference between the actual cost increment and the actual income increment of enterprises for producing green products, and the utility perception of consumers from purchasing green products was higher than the cost of consumers for purchasing green products, the three‐party game would evolve to a socially ideal stable state. The above conclusions provide useful policy suggestions for governments to vigorously develop the green product market.