A case study on the effectiveness of group buying sites under the beauty and wellness industry in the Philippines

• Main Authors: Angeles, Ana Victoria C., Eleazar, Kimberly T., Gan, Jacques Patrick P., Sam, Elora Alyssa S.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Self-care, Health; Beauty culture; Health > Vocational guidance; Beauty, Personal > Vocational guidance; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10634
• Institution: De La Salle University

This case study provides an in depth analysis and evaluation of the effectiveness of top group buying sites in Small and Medium Enterprises (SMEs) under the beauty and wellness industry here in the Philippines. Collection of data was made by (1) interviewing owners and managers of SMEs under the wellness industry who have already participated in group buying promotions to gain insights on their experiences from subscribing to them and to determine the factors that lead to long term profitability and (2) interviewing representatives from the top group buying companies in the Philippines to gain valuable information regarding the group buying processes. A qualitative type of data analysis was utilized throughout the whole research. The variables identified were measured through the use of descriptive statistics and content analysis from the information gathered from surveys and interviews by the researchers. Results of the data analysed showed that group buying promotions provided SMEs with (1) the ability to acquire new customers, (2) group buying customers that spend beyond their voucher value, and (3) gaining repeat full price purchase customers. However, our findings also uncovered a couple of disadvantages on using the group buying promotion namely: (1) inability to accommodate the number of new customers acquired, (2) potential threat to business' reputation, and (3) possible decrease in the standard of quality service. Based on the findings of our study, the group would like to recommend the following: For the merchants - (1) before participating in group buying sites, determine which product or service you want to offer that would give the most profit and assess a ceiling number of vouchers to be released on the site for every deal that is to be offered, (2) set specific offer redemption terms on the vouchers released and to (3) ensure employee satisfaction by providing additional incentives. For group buying sites - (1) always consider both the merchant and the customers as prime stakeholders of this kind of business and (2) implement stricter criteria for accepting merchants. For customers- to carefully read the fine print of the voucher such as policies regarding reservation, validity period and redemption restrictions. This is to avoid conflicts that could arise between the customers and the establishment. For the academe - to integrate in the curriculum of courses in the College of Business the framework of group buying promotion.