How Group Leaders Build Stable Community Buying Groups: A Perspective Based on the Differential Mode of Association

Research School of Economics, College of Business and Economics, Australian National University, Canberra ACT, 2601, Australia

^* Corresponding author: Xiang.Si@anu.edu.au

Abstract

Since 2016, community group buying has grown significantly in China, largely driven by its efficient logistics, supply chains, low prices, and convenience. This model has been further popularized during the COVID-19 pandemic due to its effectiveness in meeting daily needs while minimizing human-to-human contact. A key component of this business model are the “group leaders” - influential individuals within a community responsible for managing group buying activities, which include order collection, supplier liaison, and goods distribution. Their primary task is to form and sustain a reliable community group buying consortium, a task that demands excellent organizational and interpersonal skills. This paper examines this phenomenon using the lens of the differential mode of association, a theoretical model explaining interpersonal relationships in traditional Chinese society. The research indicates that group leaders, through regular interaction with consumers, are able to alter their social network position, increase their influence, understand consumer needs, provide satisfying services, and enhance trust, thereby transforming consumers into loyal group buying participants. This transformation not only brings stability to group buying activities but also reinforces the community influence of group leaders, thus fostering the growth of community group buying.