Group-buying or Advertising? Research on the Selection of Sales Strategy

Abstract

Abstract:

As a new sales strategy, online group buying has got more and more attention. In this paper, pricing models of three sales strategies are built to study whether the online group guying can increase participating merchants' profits compared with the traditional ad-vertising promotion. Finally, a numerical variation is designed to analyze influences of the change of main parameters on commodity prices, demand, advertising investment level and revenue. The results show that advertising is always beneficial to merchants if there is no minimum level of advertising. When the size of high value market is large, the demand in high value market is not sensitive to price changes, the unit cost of goods is small, the advertising effect of the website is large or the profit sharing ratio is small, participating in the online group buying is more favorable to merchants. Otherwise, advertising is more favorable.

Key words: online group buying, advertising, pricing, sales strategy

Wu Cuilian, Wang Qian, Tian Xin, Chen Qinghong. Group-buying or Advertising? Research on the Selection of Sales Strategy[J]. , 2016, 28(11): 235-244.

References

[1] 中国电子商务研究中心.2013年度中国网络团购市场数据检测报告[R]. www.100ec.cn, 2014
[2] Kauffman R. J., Wang B. New Buyers' Arrival under Dynamic Pricing Market Microstructure:The Case of Group-buying Dis-counts on the Internet[J]. Journal of Management Information Systems, 2001,18(2):157-188
[3] Byers J. W., Mitzenmacher M., Zervas G. Daily Deals:Prediction, Social Diffusion, and Reputational Ramifications[R]. Pro-ceedings of the Fifth ACM International Conference on Web Search and Data Mining, Seattle, Washington, USA, ACM, 2011
[4] Tai C. L., Hong J. Y., Chang C. M., et al. Determinants of Consumer's Intention to Participate in Group Buying[J]. Social and Behavioral Sciences, 2012,57:396-403
[5] Shiau W. L., Luo M. M. Factors Affecting Online Group Buying Intention and Satisfaction:Social Exchange Theory Perspective[J]. Computers in Human Behavior, 2012,28:2431-2444
[6] Cheng H. H., Huang S. W. Exploring Antecedents and Consequence of Online Group-buying Intention:An Extended Perspective on Theory of Planned Behavior[J]. International Journal of Information Management, 2013,33(1):185-198
[7] 李先国,杨晶,刘雪敬.时间压力和参照群体对消费者团购参与意愿的影响[J]. 中国软科学, 2012,(4):117-124
[8] 赵保国,成颖慧.网络团购中消费者购买意愿影响因素研究[J]. 中央财经大学学报, 2013,(10):91-96
[9] Anand K. S., Aron R. Group Buying on the Web:A Comparison of Price-discovery Mechanisms[J]. Management Science, 2003, 49(11):1546-1562
[10] Chen R. R., Li C., Zhang R. Q. Group Buying Mechanisms under Quantity Discounts[R]. Working Paper, University of Califor-nia at Davis, CA, 2010
[11] Edelman B. S., Jaffe S. D., Kominers. To Groupon or Not to Groupon:The Profitability of Deep Discounts[R]. Harvard Business School NOM Unit Working Paper No. 11-063, 2011
[12] Jing X. Q., Xie J. H. Group Buying:A New Mechanism for Selling through Social Interactions[J]. Management Science, 2011, 57(8):1354-1372
[13] 陈剑,陈熙龙,宋西平.逢低买入拍卖中的共谋研究[J]. 系统工程理论与实践, 2002,22(10):94-104
[14] 唐方成,池坤鹏.双边网络环境下的网络团购定价策略研究[J]. 中国管理科学, 2013,21(3):185-192
[15] 胡东滨,李洋,陈晓红,彭宛露.基于信息共享角度的团购策略研究[J]. 系统工程理论与实践, 2014,34(11):2849-2861
[16] 郭三党,刘思峰,方志耕.网络团购供应链委托代理激励机制研究[J]. 数学的实践与认识, 2014,44(24):67-76
[17] Roman K., Mass J. How to Advertise:Third Edition[M]. New York:St. Martin's Press, 2005
[18] Khouja R. Linking Advertising and Quantity Decisions in the Single-period Inventory Model[J]. Int J Production Economics, 2003,86:93-105
[19] 周永务,杨善林.Newsboy型商品最优广告费用与订货策略的联合确定[J]. 系统工程理论与实践, 2002,22(11):59-63
[20] 张延龙,梁樑.供应商数量折扣策略和零售商广告策略投入博弈分析[J]. 运筹与管理, 2009,6(18):99-104
[21] 卜祥智,赵泉午,黄庆,武振业.易逝商品最优广告投入与订货策略的博弈分析[J]. 系统工程理论与实践, 2004,24(11):100-105
[22] Joskow P., Tirole J. Reliability and Competitive Electricity Markets[R]. CSEM Working Paper Serious, 2004
[23] Desiraju R., Shugan S. M. Strategic Service Pricing and Yield Management[J]. Journal of Marketing, 1999,63(1):44-56
[24] Xie J., Wei J. Coordination Advertising and Pricing in a Manufacturer-retailer Channel[J]. European Journal of Operational Re-search, 2009,197(2):785-791
[25] 易余胤,肖莉珺.考虑广告影响的闭环供应链协调[J]. 管理评论, 2012,24(11):44-50
[26] 周名阳,林杰,袁玥赟.供应链广告与定价联合决策模型研究[J]. 软科学, 2014,28(7):29-33
[27] 赵礼强,徐家旺.基于电子市场的供应链双渠道冲突与协调的契约设计[J]. 中国管理科学, 2014,22(5):61-68