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Group buying and consumer referral on a social network
Electronic Commerce Research ( IF 3.462 ) Pub Date : 2019-06-01 , DOI: 10.1007/s10660-019-09357-4
Erbao Cao , He Li

This paper examines a unique selling strategy, group buying on a social E-commerce platform. We proposed a framework on how to design a group buying strategy in the presence of different social network attributes (different structures, different referral costs, and different network externalities) to examine the following questions: (1) How will the group buying threshold depend on consumer referrals under social networks attributes? (2) What determines the optimal group buying threshold and the group buying price in different social networks attributes? (3) What is the efficiency of group buying with threshold compared to the traditional group buying without referrals and referral reward program? We show that the threshold causes an induction effect, but this induction effect is meaningless when the externality is considerably greater than the referral cost. Moreover, we also show that higher referral costs and prices result in a larger threshold when referral cost and externality have approximate impact on the utility of the focal consumer. We also find that the firm cannot set a low price of group buying even when the referral cost is much higher than the network externality. Finally, we present a sufficient condition that a group buying strategy is better than a referral reward strategy.

中文翻译:

社交网络上的团购和消费者推荐

本文研究了一种独特的销售策略,即在社交​​电子商务平台上进行团购。我们提出了一个框架,用于在存在不同社交网络属性(不同结构,不同的推荐费用和不同的网络外部性)的情况下设计团购策略,以研究以下问题:(1)团购阈值如何取决于社交网络属性下的消费者推荐?(2)是什么决定了不同社交网络属性中的最佳团购阈值和团购价格?(3)与没有推荐和推荐奖励计划的传统团购相比,具有阈值的团购的效率如何?我们表明阈值会引起感应效应,但是,当外部性远大于推介成本时,这种诱导效果就毫无意义。此外,我们还表明,当推介成本和外部性对重点消费者的效用产生近似影响时,较高的推介成本和价格会导致较大的门槛。我们还发现,即使推介成本比网络外部性高得多,该公司也无法设定低的团购价格。最后,我们提出了一个充分的条件,即团购策略比推荐奖励策略更好。我们还发现,即使推介成本比网络外部性高得多,该公司也无法设定低的团购价格。最后,我们提出了一个充分的条件,即团购策略比推荐奖励策略更好。我们还发现,即使推介成本比网络外部性高得多,该公司也无法设定低的团购价格。最后,我们提出了一个充分的条件,即团购策略比推荐奖励策略更好。
更新日期:2019-06-01
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