Critical Examination of Online Group-Buying Mechanisms

Online group-buying mechanism evolves from earlier variant with dynamic discount pricing mechanism to daily-deal variant with fixed discount pricing mechanism. Both mechanisms still face the challenge of attracting customers, either merchants or buyers. In this paper, we examine online groupbuying mechanisms by conducting an exhaustive review of online group-buying literature. Through identifying key design features for group-buying business models, we aim to propose a more sustainable group-buying mechanism. Based on the review of 46 articles, we propose that sustainable group-buying mechanism need to balance the benefits of both merchants and buyers. The nature of group-buying needs to be emphasized, but the mechanism should not be too complicated or simple.

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