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Social group buying pricing decisions

  • 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)

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.

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Article provided by Far East Research Centre in its journal Far East Journal of Psychology and Business.

Volume (Year): 6 No 1 Paper 1 January (2012)
Issue (Month): 2 (January)
Pages: 22-29

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Handle: RePEc:fej:articl:v:6a:y:2012:i:2:p:22-29
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