Group Buying: A Strategic Form of Consumer Collective

•Group buying is a multi-phase consumer collective that creates values prior to, during and after the acquisition of products/services.•Group buying is a consumer collective that centers on consumer needs across brands, activities and lifestyles.•Group buying creates values for consumers through collective bargaining and collective product/brand evaluation.•Group buying creates values for firms through reducing cost and building brand/store awareness.•Long-term benefits for consumers include group buyer community and consumer empowerment.

Existing literature on collective consumption focuses on passionate consumers of particular brands. This research examines group buying (GB), a multi-phase consumer collective activity, that creates value prior to, during and after the acquisition of products and services. Through a two-year, multi-sited, qualitative study, we examine both retailers’ and consumers’ motivations for participating in GB. GB is essentially a consumer collective that centers on consumer needs across brands, activities and lifestyles. This consumer collective is not initiated by brand affiliation or a consumption subculture, but by the need to discover desirable brands and obtain optimal products and services at favorable prices. Furthermore, GB empowers consumers to better protect their rights in an under-regulated market.