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The Study on Consumers' Group Buying Behavior in the Dynamic Pricing Model |
XU Qing1,SUN Qianyun1,ZHANG Yi1,SUN Zhifeng2 |
1. 2. Zhejiang University
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Abstract Group buying has become a popular lifestyle to buyers since the fast development of the e-commerce market in recent years. To attract more buyers, group buying websites have released various new shopping mechanisms. In 2012, the presale website of Tmall.com launched a dynamic pricing mechanism, where the price went lower as the size of the group grew bigger. Some studies have found, price dropping effect exists in dynamic pricing mechanism, namely, within a certain range the number of customers increases before the price dropping, but declines after the price dropping. We argued that price comparison and illusion of control influence the buyers'group buying behaviors. We design an experiment to prove our hypotheses. We find that illusion of control plays a great role in dynamic pricing group buying even though the price advantage is the most important over the whole group buying life. Strong illusion of control can even overwhelm the effect of price disadvantage when it approaches the price dropping point. These results give recommendations to the e-commerce websites and the sellers when determining pricing strategies. It also helps to understand the impact of attracting more buyers when the price drops.
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Received: 28 April 2016
Published: 15 October 2016
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Corresponding Authors:
SUN Zhifeng
E-mail: eeszf@zju.edu.cn
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