A recent arrival in the internet marketing world is the 'group buying' service offered by a growing number of internet businesses. The strategy is related to the internet marketing use of 'viral advertising' and a form of 'crowd sourcing'. It principally targets consumers who are 'bargain hunters'. Businesses are invited to offer heavily discounted goods or services on the condition that a minimum number of consumers purchase vouchers for the product.
The group buying web business collects a high fee (reputed to be up to 50%) for each purchase.
Q1. How is this related to eBay auctions?
Q2. What is the benefit to the businesses offering their products?
Q3. Is this method of marketing and retailing sustainable?
