Analyzing consumer online group buying motivations: An interpretive structural modeling approach

Abstract

Given the enormous growth and significant impact of group buying on the Internet business marketplace, understanding factors motivating consumer online group buying (OGB) behavior becomes critical for both researchers and practitioners. However, prior studies have provided insufficient understanding of the motivations underlying consumer OGB. This study intends to explore the factors motivating consumer OGB using a qualitative approach based on Uses and Gratifications (U&G) theory, and to build a hierarchical model based on these motivations. The laddering interview technique was used to collect data from 58 online group buyers. A context-specific hierarchical motive model was developed using Interpretive Structural Modeling (ISM), based on the 17 motivations identified. As a timely topic using a novel approach to explore consumer OGB motivations, this study contributes to motivation theory and helps practitioners involved in OGB businesses to better plan and design strategies to attract potential new consumers and retain their current consumers.