The Pros And Cons Of Online Group Buying

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Online group buying through Internet based platforms and channels such as and have become popular and a game changing tool for consumers and companies alike in recent years. Considering the benefits of deeply discounted prices for consumers and opportunities to drive store traffic and enhance product trials for retailers, the popularity is not surprising. Even thou the apparent mutual benefits, there are risks too. This review paper focused on the unique features of online group buying (daily deals) promotions and the impact they have on persuading consumers to purchase goods and services. Additionally, this research analyzed how Massdrop, Groupon and LivingSocial use social networking as a relationship-building tool…show more content…
Besides that, it has also brought a different direction or alternative to commercial activities. The Internet has created a new market for both customers and organizations and even individuals and has been an alternative market to the traditional market. Web sites provide a chance to search information about products/services, place a comment or give orders (Hoffman and Novak, 1996; 51). Therefore, the previous experiences of marketing has turned into a different segment. Now organizations are taking consider to provide different payment methods, different shipping alternatives and even different web interfaces for different…show more content…
2004). Online shopping has experienced an extremely fast pace of growth during the recent years due to its unique advantages for both consumers and retailers, such as shopping at round the clock facilities, decreasing dependence to store visits like Kampala road, saving travel costs, increasing the reach of the customers, decreasing overhead expenses and offering a wide range of products. More than 85% of world’s online population has ordered goods over the internet during the recent year. Todd and Jarvenpa, (1997) introduced technology-centered view and consumer oriented views for adoption of online shopping. The technology-centered view involves the technical specifications of an online store that influence consumer’s awareness of using that technology (Chen et al. 2002). This paper tries to analyze studies done by various researchers in order to explore what is the best way for customers and organizations using group online buying channels. The study will create more understanding about why and how group on-line consumers go through their buying decision process. It will be helpful in drawing a new modified and more effective group online selling technique. Group online

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