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The Effect of Pricing Strategies of Group-Buying and Competition Environment to Consumers¡¦ Join Intention

The feature of group buying is that the price will go down as the accumulated orders are increasing. However, consumers will not know the final price until the end. As a result, consumers can only make decision based on the final price forecast of group buying. The final price forecast might be different depending on different pricing strategies of group-buying models and if there are competitions from posted-price stores. The purpose of this research is to understand how consumers¡¦ internal reference price and final price prediction of group buying would be influenced when facing different price curves in different market competition environment. The difference between the internal reference price and final price prediction of group-buying indicates the consumers¡¦ transaction utility. In addition, if consumers¡¦ perceived transaction utilities affect their intentions and behavior of joining group buying is another research purpose. In this research, there are three different pricing strategies, decreasing, neutral, and increasing based on the initial price, discount size and final price. For the market competition environment, it manipulated by if there are other posted-price stores to be chosen or not. The research result indicates that increasing price curve, which has higher final price, make consumers¡¦ final price prediction of group buying higher than the others under the best condition. On the other hand, it indicates that decreasing price curve, which has higher initial price, make consumers¡¦ final price prediction of group buying higher than the others under the worst condition. Consumers¡¦ internal reference prices are mainly influenced by market price information. When there are other posted-price stores to be chosen, consumers¡¦ internal reference price are higher averagely. In addition, the higher consumers¡¦ perceived transaction utilities are, the higher consumers¡¦ intentions to join group buying are. Finally, it shows consumers¡¦ intentions to join group buying have significant effect on their actual behavior.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0720105-145530
Date20 July 2005
CreatorsHsu, Ming-Wei
ContributorsTung-Ching Lin, Hsiang-Chu Lai, Heng-Li Yang, Her-Sen Doong
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0720105-145530
Rightswithheld, Copyright information available at source archive

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