Bulk buying: A look into the viability of the business model of group-buying websites

Date of Publication

2012

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Business Management

Subject Categories

Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Business Management

Thesis Adviser

Maria Victoria Tibon

Defense Panel Chair

Aida Velasco

Defense Panel Member

Raymond Paderna

Abstract/Summary

The study investigated the different value propositions that would altogether determine the viability of the group-buying websites business model. Descriptive and correlational in design as well as quantitative and qualitative in method, the study gathered data through surveying 100 customer respondents and 60 merchant establishments. In addition to these, the study also made use of data gathered from three in-depth interviews with three (3) informants from the group-buying site industry. Findings showed how customers are benefited by the usage of group-buying sites due to lower prices, convenience of usage and the variedness of selection of product offerings. In addition to this, most customers also deem the service to be effective given the redemption process as well as the overall satisfaction that they get. Meanwhile, merchants are benefited given the positive impact the use of group-buying sites has brought to their sales and profits. Above all, merchants are benefited from the increased brand exposure that they get when they offer their products in the sites free of charge. In line with this, the study has also uncovered relationships between merchants’ sales and profits, costs and profits, economies of scale and sales, economies of scale and profits and brand recognition and sales. Finally, findings of the study also conclude how group-buying websites are greatly benefited from the profits that they are able to generate from their operations.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU16692; CDTU016692

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

leaves ; 28 cm. + 1 computer optical disc.

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