Online Group Buying Research Articles

Fairness and Social Words on Online Group-Buying Intentions: A Two-Level Hierarchical Linear Model

Online group buying, which is a system that provides daily discounts for various services and products, is a new form of marketing at the junction of promotion and pricing that has attracted the attention of both practitioners and academia. It allows strangers to unite in order to buy products at cheaper prices and has gained exponential growth in online sales worldwide. Consumers are more likely to trust group-buying if they perceive fairness. The words of others may influence members' decisions of group-buying; this study investigates the two-level hierarchical relations between the individual perception and group climate, utilizing hierarchical regression analysis of the data from 221 respondents. The results indicate that at the individual level, buyers' perceptions of fairness positively influenced trust; their perceptions of the usefulness and ease of use also had positive effects on their attitudes. At the group level, it was shown that a critical mass could influence attitudes and intentions.

Evaluation of satisfaction and repurchase intention in online food group-buying, using Taiwan as an example

Purpose– The purposes of this study are: to investigate the relationship of personal background to online group buying's satisfaction and to establish the relationship between consumer's satisfactions and repurchase intention.Design/methodology/approach– This research used a questionnaire to survey and chose consumers with online group buying experience as research subjects. The study used SPSS statistic software to analyze.Findings– The outcomes of this study are: demographic variables have effects on consumer's online food group-buying satisfaction. Consumer's satisfaction has an effect on repurchase intention.Originality/value– This paper investigates the relationship of personal background to online group buying's satisfaction. It establishes the relationship between consumer's satisfaction and repurchase intention.

Factors Affecting Online Tourism Group Buying and the Moderating Role of Loyalty

Online group buying has become increasingly prevalent, and people frequently shop on group buying (GB) sites. This study examines the relationships among transaction cost advantage, preview, trust, satisfaction, and repurchase intention within online tourism GB environments. To investigate differences in the constructs between the high and low emotional loyalty (EL) groups, this study draws on the moderating role of EL. The results reveal that transaction cost advantage, preview, and trust significantly and positively affect satisfaction, which, in turn, influences repurchase intention. The high-EL group shows stronger relationships between preview and satisfaction and between satisfaction and repurchase intention than the low-EL group. The low-EL group shows stronger relationships between transaction cost advantage and satisfaction and between trust and satisfaction than the high-EL group. The findings have implications for tourism academics and the tourism industry.

Factors influencing the effectiveness of online group buying in the restaurant industry

Group buying, which provides daily discounts for various services and products, is a new form of marketing that has attracted the attention of both practitioners and academic researchers. However, it is unclear what factors influence the effectiveness of a group buying promotion. This study presents an analysis of 862 restaurant group buying deals based on the secondary data collected from a restaurant guide website. The results indicate that group buying effectiveness – namely, the number of coupons sold, satisfaction improvement, and return intention of group buying customers – can be affected by the discount depth of a deal as well as the service quality and popularity of a restaurant. These findings provide useful insights regarding the elements that are necessary to make a group buying promotion work.

Does altruism matter on online group buying? Perspectives from egotistic and altruistic motivation

Purpose– The purpose of this paper is to identify whether altruistic motivation is a significant factor in online group buying and to examine the effects of altruistic and egotistic motivation on online group buying intention through the psychological processes of trust and satisfaction.Design/methodology/approach– A field study on Ihergo (www.ihergo.com/) was chosen because it is the largest online group buying marketplace in Taiwan. An online survey method was used to collect data. Returned questionnaires numbered 302 responses with 20 incomplete data, resulting in 282 valid responses for data analysis. Collected data were analyzed using structural equation modeling.Findings– The findings of the study shows that altruism is relevant to online group buying, and trust and satisfaction have significantly positive effects on online group buying intention. The results emphasize that altruism, reciprocity, and reputation of motivations are significantly positive predictors of trust. Altruism and reciprocity have significantly positive effects on satisfaction, whereas reputation does not.Research limitations/implications– Altruism, reciprocity, and reputation represent three key elements of online group buying behavior. Integration of the altruism, reciprocity, and reputation results in a better explanation on online group buying intention through the psychological process, trust, and satisfaction. This study extends the value of online group buying and sheds light on the potential effects of altruistic and egotistic motivation on online group buying intention.Practical implications– Online group buying is more complex than individual online shopping and is not easy to fulfill customer requirements. To satisfy online group buying, e-vendors might provide altruistic activities, enhance reciprocal services and products, develop better reputation mechanisms, and present an easier approach to encourage online group buying on the web site.Originality/value– To the best of the knowledge, this is first paper to examine the effects of altruism on online group buying. The contribution of this study draws attention to the altruistic value of electronic commerce, by theorizing and validating the effects of altruistic and egotistic motivation on online group buying intention through psychological processes (trust and satisfaction).

Re-examining the revival of online group buying mechanisms

In commercial environments consumers with limited order size can aggregate their demand through a group buying mechanism allowing them to enjoy the benefits of a wholesale deal. In electronic commerce, group buying was first introduced in the late 90s. Researchers in various fields conducted studies showing the business viability of the group buying model and it was even regarded as the shopping method for the 21st century. However, web-based group buying did not live up to its initial expectations and experienced an early fall down. In this paper, we provide an evaluation of some of the work carried out on group buying and an analysis of the group buying business model. Moreover, we examine a number of important trends in e-Commerce from a group buying perspective. Based on this analysis, we derive a set of conclusions regarding the re-introduction of the group buying model to the electronic marketplace. Key words: Electronic commerce, group buying, customer coalition formation, group management, demand aggregation mechanisms

Customer Satisfaction with Online Group-Buying Services

Given the essential role of customers to the success of any business, particularly newly-established ones, it is crucial for Hanoi’s online group-buying (OGB) companies to make constant efforts to keep their customers satisfied. This research aims at investigating customer satisfaction in the context of Hanoi’s OGB through both quantitative and qualitative methods including an online customer survey with 150 OGB customers, in-depth interviews with 20 customers, and participant observation of five OGB websites. The research results show that the key factors affecting OGB customer satisfaction include product price, merchandise variety, information quality, product quality, and delivery. Also, despite the high likelihood of customers’ repurchasing and recommending to others, Hanoi’s OGB business has not yet met customer satisfaction, particularly in terms of the information quality, supplier’s reputation, product quality and delivery. The root causes of this situation include the incomplete legal framework and ineffective management at macro-level; the poor quality management and business ethics of OGB companies; and the limited OGB customers’ awareness of their rights and responsibilities.

Perceived benefits, perceived risk, and trust

PurposeThe purpose of this paper is to investigate how perceived benefits, perceived risk, and trust influence Chinese consumers' online group buying organized by institutional initiators.Design/methodology/approachIn total, 578 valid samples were collected via an online survey. Multiple regressions were used to test the research model.FindingsThe results show that three perceived benefits (price benefit, convenience benefit, and recreational benefit) and three factors that together represent trust of the initiator (perceived reputation, structural assurance, and website trustworthiness) significantly positively influence consumers' attitudes toward online group buying.Originality/valueThis study is the first one to specifically focus on how perceived benefits and perceived risks influence consumers' attitudes toward online group buying.

The research on buying behaviour among group buyers: the case of Croatia

In Croatia, first group buying website appeared in 2009 and today there are 40 active group buying websites. For the purpose of this paper, a primary research was conducted among social network fans of group buying websites. The research instrument was online questionnaire. The purpose of the research was to profile group buyers in Croatia regarding their demographic and behavioural characteristics and to identify factors customers take into consideration when deciding whether to make a purchase and which group buying websites to use. Results analysis was conducted using parametric and non-parametric test for comparing means and assessment of characteristics independence. Research findings imply that customers’ demographic characteristics significantly affect their group buying behaviour and that some factors have detrimental effect on adopting of online group buying. Research findings are expected to help group buying websites to attract new customers, keep existing ones satisfied and learn how to distinguish themselves from their competitors.

The Study of Negative Service Encounters during Redeeming Process of Online Group-Buying

The Study of Negative Service Encounters during Redeeming Process of Online Group-Buying

Online Group Buying Behavior in CC2B e-Commerce: Understanding Consumer Motivations

With the development of Internet commerce, online group buying plays an important role in the recent electronic market. This study tries to understand consumer motivations with online group buying behavior in CC2B e-commerce, a popular group buying community Web site in Taiwan (Ihergo.com), which is designed to aggregate the power of buyers to gain volume discounts. Through online group buying literature as well as Netnography, four types of motivations for online group buying—profit, value, emotion, and achievement—have emerged. Moreover, the dynamic process of motivations found in online group buying will be further conceptualized and explained. The implications for researchers and marketing management are discussed.

Exploring antecedents and consequence of online group-buying intention: An extended perspective on theory of planned behavior

With the development of electronic commerce, many dotcom firms are selling products to consumers across different countries and regions. The managers of online group-buying firms seek to increase customer purchasing intentions in the face of competition. Online group-buying refers to a certain number of consumers who join together as a group via Internet, for the purpose of buying a certain product with a discount. This study explores antecedents of intention to participate in online group-buying and the relationship between intention and behavior. The research model is basaed on planned behavior theory, electronic word-of-mouth, network embeddedness, and website quality attitude. An online survey is administered to 373 registered members of the ihergo website. Data is analyzed using the partial least squares method, and analytical results demonstrate that for potential consumers, experiential electronic word-of-mouth, relational embeddedness of the initiator, and service quality attitude influence intention to engage in online group-buying; for current consumers, intention to attend online group-buying is determined by the structural and relational embeddedness of the initiator, system quality attitude positively affects intention, and intention positively affects online group-buying behavior. This study proposes a new classification of electronic word-of-mouth and applies the perspective of network embeddedness to explore antecedents of intention in online group-buying, broadening the applicability of electronic word-of-mouth and embeddedness theory. Finally, this study presents practical suggestions for managers of online group-buying firms in improving marketing efficiency.

Beyond price: how does trust encourage online group's buying intention?

PurposeThe purpose of this paper is to investigate how online trust affects group shopping intention in the Ihergo web site.Design/methodology/approachSamples from the Ihergo web site were collected by mailing a questionnaire survey to those who agreed to participate.FindingsGroup‐buying operators need to understand their consumers and the scheduling shopping rules between internet shoppers and firms. Moreover, word‐of‐mouth (WOM) can be created online by offering web visitors the ability to access the opinions of satisfied customers.Practical implicationsAn online business may adopt different methods to enhance its customer satisfaction level. When people enter a significant amount of personal data at a web site, they are typically reluctant to change vendors and enter the data again.Social implicationsCustomers view a group‐buying operator as a shopping expert, and expect that the group‐buying operator can handle shopping problems before a dispute occurs.Originality/valueThe findings of this study provide interesting insights for group‐buying operators interested in group‐buying commerce; consumers having a high level of interest in shopping possess a strong motivation and desire to interact with the group‐buying operator.

An Empirical Study on Consumers’ Continuance Intention Model of Online Group-buying

This paper examines the factors influencing consumers’ intention to continue using a new pattern of online group-buying, which benefits consumers from high discounts and is prevalent in many countries of the world since 2009. A theoretical model is proposed based on Expectation-Confirmation Model of IS Continuance (ECM-ISC) from the previous IS continuance literature, integrating with e-recovery service quality, perceived risk and two external variables. Data collected from a questionnaire survey of OGB consumers provides empirical support for the proposed model. The results indicate that consumers’ satisfaction with prior use and perceived usefulness significantly influence consumers’ continuance intention. Consumers’ satisfaction is determined primarily by consumers' confirmation of expectation from prior use and secondarily by perceived erecovery service quality. Further, confirmation also has a significant influence on post-acceptance perceived usefulness. Confirmation, in turn, is significant influenced by both product quality and information quality. Some suggestions for practitioners are also offered.

Predicting intention to purchase on group buying website in Taiwan

PurposeThis study proposes integrating the perceived risk and social influence literatures on online group buying (OGB) intentions with the basic TAM variables (perceived usefulness and perceived ease of use).Design/methodology/approachBased on an empirical survey of 304 online adopters of OGB in Taiwan, the paper uses structural equation modeling to confirm the research model.FindingsThe results reveal that perceived critical mass had the largest total effect on intention to use group buying websites. The findings also indicate that perceived usefulness and a sense of virtual community (SOVC) have significant effect on OGB intention. In addition, both perceived ease of use and website quality influence perceived usefulness. As expected, perceived risk has negative effect on OGB intention.Research limitations/implicationsThis study only considered buying intention with regard to foodstuffs, and it is unclear whether these analytical results can be generalized to other items. Further research could apply this model to examine group coupons (such as discount vouchers for restaurants).Practical implicationsTo sustain a successful group buying website, attention must be paid to enhancing user's SOVC, enlarging the critical mass, and lowering the perceived risk. Practitioners can apply the findings of this study to focus on the determinants of success for their online shopping websites.Originality/valueTheoretically, while drawing upon TRA studies, this paper provides a model that is capable of lending an understanding of the determinants of OGB intention. From a managerial perspective, the findings indicate that webmasters can improve or manage website members' buying intentions by increasing the sense of virtual community and critical mass.

Research on Business Model of Rural Online Group-Buying on Contacts

up-buying activities based on the characteristics of the rural market and online group-buying. Then it presents a rural online group-buying model based on the contacts. Finally, it analyses this mode based on the SWOT approach. Generally speaking, this paper provides an inspiration and reference for the development of the group-buying online industry, by the exploring study on the online group-buying of the rural areas.

Factors affecting online group buying intention and satisfaction: A social exchange theory perspective

This study investigates factors that affect consumer continuous use intention toward online group buying and the degree that reciprocity and reputation of social exchange, trust, and vendor creativity affect consumer satisfaction and intention toward online purchasing. Data from 215 valid samples was obtained using an online survey. The research model is assessed using partial least squares (PLS) analysis. The results show that the intention to engage in online group buying is predicted collectively by consumer satisfaction, trust, and seller creativity. Consumer satisfaction with online group buying is predicted primarily by trust, followed by consumer reciprocity. The proposed research model explains 67.7% of variance for satisfaction and 39.7% of variance for intention to engage in online group buying. The results suggest that reciprocity, trust, satisfaction, and seller creativity provide considerable explanatory power for intention to engage in online group buying behavior.

A Conceptual Model for Investigating Online Group Buying in Virtual Communities

In virtual communities, people can pool together to buy a product at a lower price, which is called online group buying (OGB). We argue that besides product-related features, the initiators’ social capital is a key factor in one successful OGB event. Based on Social Capital Theory, we present a conceptual model for investigating the relationship between initiators’ social capital and the success of OGB event. Our study offers implications on: 1) how can the virtual community managers attract and sustain more members by facilitating successful OGB events; 2) what may become the future of online group buying mechanism, which is a booming phenomenon in electronic commerce.

An Empirical Study on Consumer Purchasing Intention in Online Group-Buying

Online group-buying characterized by Groupon model is developing rapidly in recent years. This study presents three perspectives of price stimulation, demand extendibility, and perceived trust to investigate factors influencing consumer participation intention in Online group-buying. Based on the foundation of existing empirical research results, an empirically validated comprehensive model is proposed and tested.

Buzzing and Tipping Frenzies: Threshold Effects in Online Group-Buying Diffusion

This paper studies two types of threshold-induced effects: a surge of new sign-ups around the time when the thresholds of group-buying deals are reached, and a stronger positive relation between the number of new sign-ups and the cumulative number of sign-ups before the thresholds are reached than afterwards. This empirical study uses a dataset that records the inter-temporal cumulative number of sign-ups for group-buying deals in 86 city markets covered by Groupon, during a period of 71 days when Groupon predominantly used “a deal a day” format for each local market and posted the number of sign-ups in real time. We find that the first type of threshold effects is significant in all product categories and in all markets. The second type of threshold effects varies across product categories and markets. Our results underscore the importance of considering product and market characteristics in threshold design decisions for online group buying.