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Social group buying pricing decisions

Author

Listed:
  • Oren Gil-Or

    (PhD student, Faculty of Business and Economics University of Pécs, Hungary)

  • Prof. Gabor Rekettye

    (PhD, Professor of Marketing, University of Pécs Faculty of Business & Economics, Hungary)

Abstract

Social buying became an extremely popular phenomenon in the last year and this study examined the factors that can lead vendors to be successful using this trend. We’ve found that coupon’s category, coupon’s website and coupon’s prices have an effect on the number of coupons purchased, one of the success criteria of group buying. In the different coupons categories, restaurants and bars were more successful compared to other various products and services (excluding spas, self-care, fashion and food). Between the coupons sites, there are sites (the ones that are global, in this research) that are more successful than others. The 15-30 USD prices category was found to be more successful compared to the higher coupon prices. Coupon discount levels didn’t have an effect on the success of the coupons, mainly as a result of the low range of discount levels. Additional research is recommended in order to better understand the global factors that affect social group buying success in a longer-term view from the vendor perspective.

Suggested Citation

  • Oren Gil-Or & Prof. Gabor Rekettye, 2012. "Social group buying pricing decisions," Far East Journal of Psychology and Business, Far East Research Centre, vol. 6(2), pages 22-29, January.
    • Handle: RePEc:fej:articl:v:6a:y:2012:i:2:p:22-29
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    References listed on IDEAS

    as
    1. Moshe Givon, 1984. "Variety Seeking Through Brand Switching," Marketing Science, INFORMS, vol. 3(1), pages 1-22.
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    More about this item

    Keywords

    Pricing Decision; Group Buying; Price; Social Group.;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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