Abstract
Given the rapid growth of online group buying (OGB) market in China, this study was designed to examine the influencing mechanism of online reviews on Chinese consumers’ purchase intention in OGB context. A comprehensive model was developed based on technology acceptance model (TAM) and information adoption model (IAM). The construct named overall reviews was included in the research framework along with the variables from TAM and IAM. Promotional marketing (PM) was expected to play a moderating role between online reviews and consumers’ purchase intention. A quantitative study was conducted, and data were collected using a survey. To test the conceptual model’s hypotheses, Amos 18.0 was applied to estimate the structural equation model (SEM). The results indicate that review quality and reviewer characteristics have significant relationships with consumers’ perceived credibility and usefulness of an online review, which in turn to influence their purchase intention. Overall reviews proposed in this study also have significant effects on purchase intention. Furthermore, low-interest promotional marketing group act more rational purchase behavior than high group. Specific practical and theoretical implications and study limitations are discussed based on the results.
Highlights
The evolution in information technology (IT) has been transforming electronic commerce (e-commerce) practices continuously
Thirty-seven out of 50 college students who we randomly interviewed in January 2016 have installed online group buying (OGB) apps on their phones
All the composite reliability (CR) coefficients are greater than the recommended level of 0.7, showing good reliability of the constructs (Fornell and Larcker 1981)
Summary
The evolution in information technology (IT) has been transforming electronic commerce (e-commerce) practices continuously. Information-based technologies have created many new business models and marketplaces (Narayanasamy et al 2011; Lim 2015). Consumers have been able to search for product information and make purchases on websites for decades. The considerable number of options among online shopping platforms has made consumers uncertain about what to buy. With the availability of online product reviews, consumers’ purchase decision process has been greatly improved. Product reviews help retailers and companies understand consumers’ needs faster and more accurately, which can reduce businesses’ costs for marketing and
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