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Bid Together, Buy Together: On the Efficacy of Group-Buying Business Models in Internet-Based Selling (2002)
| Venue: | HANDBOOK OF ELECTRONIC COMMERCE IN BUSINESS AND SOCIETY, BOCA |
| Citations: | 18 - 5 self |
BibTeX
@INPROCEEDINGS{Kauffman02bidtogether,,
author = {Robert J. Kauffman and Bin Wang},
title = {Bid Together, Buy Together: On the Efficacy of Group-Buying Business Models in Internet-Based Selling },
booktitle = {HANDBOOK OF ELECTRONIC COMMERCE IN BUSINESS AND SOCIETY, BOCA},
year = {2002},
pages = {27--28},
publisher = {CRC Press}
}
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Abstract
In recent years, the advent of electronic commerce has led to the creation of many new and interesting business models for Internet-based selling. In this paper, we will explore a variant of the typical dynamic pricing mechanism, in which buyers and sellers actively engage in the price discovery process, that emphasizes the power of group buying. Dynamic pricing approaches are used by many well known Internet-based firms, including firms that offer online auctions such as eBay and Amazon.com. A group-buying discount is a dynamic pricing mechanism that mimics the general approach of traditional “discount shopping clubs. ” Group buying pricing mechanisms permit buyers to aggregate their purchasing power and obtain lower prices than they otherwise would be able to get individually. However, with the recent closing of Mercata.com, a leading group-buying Web site, and the change in strategic direction of another market leader, Mobshop.com, the future of group-buying discount business models in Internet-based selling is no longer clear. In this essay, we will: (1) introduce the innovations associated with group-buying business models in Internet-based selling; (2) characterize the operational aspects of dynamic pricing mechanisms for group-buying through a discussion of a series of mini-cases with different firms that are widely recognized as the innovators in this area; (3) assess the quality of their business models relative to other new business models for Internet-based selling; and (4) draw
Keyphrases
internet-based selling group-buying business model bid together buy together dynamic pricing mechanism group-buying discount business model electronic commerce new business model purchasing power internet-based firm traditional discount shopping club group buying strategic direction typical dynamic pricing mechanism online auction recent closing general approach interesting business model mechanism permit buyer group-buying web site price discovery process different firm group-buying discount business model recent year operational aspect dynamic pricing approach market leader
