The factors affecting restaurant customers' return intention after online group buying promotion

Abstract

With the expansion of online group buying, this new promotion model is used by more and more restaurants. However, it is difficult for restaurant owners to make profit from one time online group buying promotion; they are expecting that customers brought by online group buying could return and become their long-term customers. This study adopts both correlation analysis and structural equation modeling to analyze the factors affecting restaurant customers’ return intention after online group buying promotion and finds that perceived quality, perceived value and customer satisfaction would greatly affect customers’ return intention. Perceived value and customer satisfaction are also mediating variables in our study model. This study also finds that the deeper discount restaurants offer, the less likely the customer would return to consume at the original price without discount. Keywords-online group buying; return intention; customer satisfaction; perceived value.