Abstract

In group-buying schemes, a product is put on sale with a specified auction cycle. According to a predetermined price change trajectory, quantity discounts are offered on the total of all customer orders. As more buyers join the group to purchase the product, the imputed price is updated dynamically. At the end, all buyers who participate in the cycle will be charged the same clearing price, irrespective of what their actual bids were. This study, through experimental design, manipulates the starting price, price interval, and the ending price of group-buying schemes, and incorporates in perceived attractiveness and believability as endogenous variables; to explore their influences on consumers' group buying intentions. The findings are as follows: First, with regard to the ending price, when manipulated to be in unreasonable low level, consumers perceive the attractiveness of group buying most. Second, the reasonableness of price interval and ending price have significantly positive influences on consumer's perceived believability of group buying. Third, group buying believability results in positive effect on perceived attractiveness, and both strongly contribute to consumers' group buying intentions.