An Innovative Business Model for Online Cosmetics: A Group Volume Discount (GVD)-Based Approach

• Main Authors: Hsiao-Mei Huang, 黃筱梅
• Other Authors: 游張松
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/c728xq

碩士 === 國立臺灣大學 === 企業管理碩士專班 === 96 === Because of the growth in Internet business and female consumers, we planed to start out business on the Internet with focusing on female consumer. That’s why we decided to run an online cosmetic business. We provided multiple choices with the combination of virtual store, physical store, and direct sale to the consumer. Retrieve the advantages of each distribution channel, including the convenient and popularity of the Internet, experiencing the product through the physical store, and the one-to-one service of direct sale. The model was based on the knowledge sharing which were provided by the consumer, expert, opinion leader, supplier, and the doctor. We extracted the information and knowledge to become the i-magazine with interactive layout. Furthermore, we created the group volume discount (GVD) to attract the users to increase the total expenditure of the cosmetics, thereby we can have the bigger bargaining power when negotiated the prices with the suppliers. The product designer chose the products and decided the price levels for GVD. Consumer decided the purchase quantity for specific price level. When the quantity of the specific price level was met, the consumer who applied for that price level or the higher one can complete the transaction with the price. Searching for and making decisions about information is becoming increasingly difficult as the amount of information and number of choices increases. Recommendation system can help users find items of interest, especially for the cosmetics that is highly different from person to person. Therefore, we recorded the user’s shopping pattern, online behavior, and the preference, and extracted the user profile with the data mining technology. After matching the user profile and the product profile, we provided the personal recommendation which was unique for each user to access to the GVD and information of the products that meet their needs. On the other hand, this recommendation was also an important data for the suppliers to understand the needs and wants of the consumer. Through this model, we can attract more users to buy the product with lower price and increase our revenue.