Examining the Website e-Satisfaction and Trust towards Purchase Intention on Two Group Buying Sites in the Philippines

Abstract

Online Group Buying Sites have been considered as one of most successful ecommerce business today because it not only benefits the firms but also customers as well- it’s a win-win situation for shareholders. It is a Daily Deals website wherein it offers goods and services at a very low price given that there are certain number of people buying the product or service and in a predetermined time. This type of business model not only attracts the practitioners but also people from the academe.In the Philippines, Many online group buying sites have emerged since the start of their existence in the country on 2010 however there were only few remains to date. This paper tries to examine Filipino consumer’s purchase intention towards group buying sites specifically Cash Cash Pinoy and Ensogo Philippines using Social Exchange Theory (Trust, Reciprocity, Reputation and Vendor’s Creativity) and UTAUT Theory (Performance Expectancy, Effort Expectancy, Facilitating Conditions, Social Influence and Purchase Intention). Research results are based on samples collected from 315 respondents. 142 of which are respondents with previous purchase experience from the mentioned sites and 173 of those are inexperienced or haven’t tried purchasing from the mentioned group buying sites. Two Clusters with Recency, Frequency, Monetary variables are done and results shows that there is a significant effect on Low monthly income earners on how much they buy and how frequent they buy from the group buying sites. Furthermore, results also show that for all the respondents that satisfaction has a significant effect towards Purchase Intention. Moreover, a difference in results from experienced and inexperienced buyers are observed; inexperienced buyers tends to focus more on facilitating conditions of the websites while experienced buyers tend to focus more on Performance expectancy, Effort Expectancy, Reputation and Social Influence that have significant effects on Satisfaction that leads consumers to purchase. This research tries to study both experienced and inexperienced consumer behavior by examining the antecedents of Purchase Intention with the consideration of Technological and Psychological contexts. Future research directions and implications are also discussed further in this research.