Network Group Buying Pricing Under The Influence Of Herd Behavior

As a new kind of consumption, network group changed people’s consumption patterns greatly.With the promotion of the network group buying business model of Groupon, domestic group buying market has developed rapidly since 2010, more and more companies sell their own products using group buying mode, at present group buying industry tends to be mature gradually. Constracting with the traditional marketing model, group buying has unparalleled competitive advantage, it not only meets the needs of consumers, but also solves the problem of marketing promotion using low-cost. In the environment of network, consumers often make decisions based on other people’s decision-making informations, and they could be influenced by psychology, experience and knowledge and so on.In this paper, it considers the impact of herd behavior effect on consumer decision process in network group buying, puts the psychological factor of herd behavior affected consumer’s decision-making behaviors into network group buying pricing, explores group buying pricing decisions based on herd behavior, has important practical significance for riching consumer bounded rationality theory as itll as the group buying pricing research. In this paper, first, it summarizes and comments the related theories of network group buying, herd behavior and dynamic pricing. Secondly, it analyses purchasing and decision-making behavior of consumer influenced by herd behavior, explore the personal factors, group factors and situational factors affecting herd behavior in network group buying, verify the effect on consumer purchasing decisions caused by herd behavior, and find that regret aversion emotions, group size, group evaluation and time pressure factors of consumers will have an impact on herd behavior in the network group buying. Then, using the consumer’s regret aversion as an intermediary, it introduces the impact factor of the herd behavior into group buying pricing model, establish a group buying pricing model from the perspective of price discrimination and advertising effectiveness, to provide a more reasonable pricing strategy for sellers and group buying sites. In the end, this paper analyzes the problems in the process of network group buying pricing under the influence of herd behavior, and prospects the development direction of future research.