Online group buying: Some insights from the business-to-business perspective

Extant marketing research has examined online group buying (OGB) from the consumer behavior perspective. The goal of this article is to broaden understanding of OGB by offering insights into the topic from the business-to-business (B2B) perspective. In doing so, it offers insights to help stimulate greater interest in and scholarly work on better understanding and improving B2B relationships and outcomes in OGB. Three discovery-oriented qualitative studies were conducted and analyzed using content analysis with an interpretive approach and contingency theory as a theoretical lens. The findings reveal that marketing exchanges through OGB offers businesses the opportunity to raise corporate and product brand awareness, gain an immediate pool of large groups of customers, expand the customer base, sell other products, contribute to better cash flow, encourage positive word of mouth, and increase sales during non-peak sales periods. However, marketing exchanges through OGB may also be challenging for businesses in terms of maintaining business profitability, managing costs, withstanding competition, obtaining support from OGB website operators, and managing customer expectations of continued discounts. These findings should help businesses that promote and sell their products through OGB to become better informed of the potential benefits and pitfalls of engaging in OGB, and thus improve their navigation in the OGB marketplace to achieve desired marketing outcomes.