A Study On Brand Equity Of Vendors In Group Buying Markets

Online group buying platform has a huge consumer traffic, and vendors on the online group buying platform broaden their online marketing channels by releasing online promotional products.Vendors' marketing effect of participating in the online group buying business can be measured from two aspects, one is a direct and short-term marketing effect, namely the enterprise to achieve rapid growth in product sales, to increase profits and market share. An indirect and long-term effect of marketing is an expansion of the brand awareness of enterprises to a certain extent, enhancing the brand image so that consumers have more sense of brand, so as to affect the subsequent business and brand development. This paper will study on the vendors' strategy and give advices by measuring these two aspects of marketing effect from the point of view of brand equity.In this paper we assume that brand equity is composed of brand awareness, brand quality,brand image and we use data from the third party platform to measure these three dimensions. This paper uses real transaction and vendors' data from dianping.com and use Stata to model, by establishing the linear regression equation to model the impact of brand equity on group purchase commodity sales, and establishing the difference in difference method to model the impact of carrying out online group buying promotional activities on the brand equity effect. The empirical results show that brand equity significantly positive correlate to sales of products; price significantly moderates the effect between vendors' brand assets and sales of products. Carrying out online group buying promotional activities has a positive effect on its brand awareness and construction of brand image, but has no significant effect on perceived quality. This shows that carrying out online group buying promotional activities can bring more traffic to the vendor's home pages, to a certain extent it is meaning that it will raise the brand awareness, and users get engaged in writing comments, adding pictures and so on, to a certain extent it is meaning that it will has a positive effect on brand image construction. But carrying out online group buying promotional activities does not enhance brand perceived quality. The study deepen and rich studies on group buying commodity demand and the evaluation of the effects of carrying out group buying promotional activities on brand equity, and put forward some constructive suggestions for the marketing strategy ,brand construction and product design strategy.