The Effect of Customer Perceived Service Quality on the Optimal Group-Buying Strategy

DOI

10.2991/amsm-16.2016.100How to use a DOI?

Keywords

group-buying; perceived service quality; pricing; sales channel

Abstract

In this paper, we study the popular group-buying model in which theseller offers discount on the group-buying websites to attract new customers coming to experience its service. This paper analyses seller's pricing decision between only running offline business and joining the group-buying business. We find that when only running offline business, higher perceived service quality will bring more profit for the seller. However, if the seller joins the group-buying website and the perceived service quality is relatively low, seller's profit will decrease with it. If the seller's service quality is higher than the perceived service quality, he will improve his regular price after joining the group-buying website. Moreover, only when the group-buying website scale is relatively big can the seller make more profit by joining the group-buying website.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yifan Wu
AU  - Ling Zhu
PY  - 2016/05
DA  - 2016/05
TI  - The Effect of Customer Perceived Service Quality on the Optimal Group-Buying Strategy
BT  - Proceedings of the 2016 International Conference on Applied Mathematics, Simulation and Modelling
PB  - Atlantis Press
SP  - 442
EP  - 445
SN  - 2352-538X
UR  - https://doi.org/10.2991/amsm-16.2016.100
DO  - 10.2991/amsm-16.2016.100
ID  - Wu2016/05
ER  -