Study On Strategy Selection Of Group-buying On The Web Based On Customers’ Expected Price

In recent years, with the rising and wide application of e-commerce industry, group-buying on the web has been developed. The research about the operation management of group-buying is limited compared with the flourish of group-buying. Although the commercial model of group-buying is introduced a few years, the number of websites which engage in group-buying is nearly to1726[1]. So, exploring the operation management and strategy selection of group-buying has an important influence for raising the customers’ satisfaction and improving the competitiveness and operation efficiency of the website.Based on relevant results, this research has studied the operation management of group-buying on the web systematically with the current development of group-buying, from the concept, features and the process. The aim and meaning of this study is to get the classification the group-buying which organized by commercial website, and to get the framework of group-buying strategy selection which is meaningful for the further study of operation management of group-buying. The optimization model considering the benefit of customer, seller, and the website gives a quantitative strategy selection method. The strategy selection method in the paper is applied the notebook group-buying, which showed that this method has feasibility and effectiveness.This research has mainly completed four aspects work as following:Firstly, the related concept is analyzed. The related concept and feature of group-buying is analyzed. The process which contains offering commodity or service and paying process, bargaining and bidding process and offering commodity or service and paying process is listed. It also analyses the critical factors which has an important influence for the success of group-buying.Secondly, the theoretical framework of strategy selection is given in this paper. It integrates the demand analysis of participant in group-buying on the web. It also gives the definition and feature of the strategy selection and the classification of group-buying. The description of this research is given, and the steps and process is presented.Thirdly, the strategy selection method based on optimization model. It gives the related symbol definition and explanation of the strategy selection, and also screens the customers’ preference based on knowledge rules, and then computes the customers’ surplus and the benefit of sellers and website, based on these factors designs the optimization model and the Partheno-Genetic Algorithm which is for solving the optimization model.Fourth, a case about strategy selection is analyzed. This case is about a group-buying strategy selection of H notebook, which demonstrates the selection method. And this application also illustrates computing process of the method, at the same time it displays the feasibility and effectiveness of the method.In the end of this paper, the main research results, conclusions, major contribution and limitations are summarized. The prospect of required work for further research is also given.