The group purchase is known as a consumer collective action. Customers who want product discounts will go to group providers and all will agree to the same product, only if it is given at a lower price. It is also known as daily deals, social buying or collective buying. This process originated in China as Tuangou and is now quite common in many regions of the world.
One of the largest group buying firms in the United States is Groupon. Recently, a new shopping trend is attracting the interest of the online shopping community. Various websites are emerging that offer an area-based discount offer on various products and services. Consumers have several group shopping sites from which they receive offers on a wide range of products at greatly reduced prices. Now, each retailer submits offers through shopping sites to capture sales.
By adapting to this emerging new trend, sellers are engaging their customers in a completely innovative way. In this way, they can not only offer great deals to their existing customers, but also market their product to the friends and family of existing customers.
Group shopping or customer shopping is a win-win situation for both the seller and the buyer. A buyer wins because he saves money, he does not have to wait for the product to go on sale and, to top it off, he has more bargaining power than the seller. The seller is also satisfied that selling in this way lowers his holding price, can attract new customers, and can make higher profits by selling more. Group buying opens up new alternatives for the owners and customers of each business enterprise. The trend of monthly purchases has started from this concept alone, if someone buys a dozen of a particular product than one piece, by piece, and the cost goes down.