Consumer Characteristics, Social Influence, and System Factors on Online Group-Buying Repurchasing Intention

Abstract

ABSTRACTOnline group buying (OGB) has recently captured the attention of academic researchers. Because of the lack of an integrated perspective of external variables in the technology acceptance model (TAM), we investigated the influence of consumer characteristics (economic shopping orientation and prior buying frequency), social influence factors (subjective norms and visibility), and system factors (system quality and information quality) on perceived usefulness (PU) and perceived ease of use (PEOU) of the OGB web site. We also examined the effects of PU and PEOU on attitudes and behavioral intention. We collected 1,163 useable questionnaires through a quantitative online survey, and used structural equation modeling (SEM) to analyze the data. The results show that, whereas economic shopping orientation, subjective norms, and information quality had a positive effect on PU, purchasing frequency and system quality affect the PEOU of the OGB web site. However, the relationship between visibility and PU was non-significant. We integrated consumer characteristics, social influence, and system factors in OGB research, and the findings can assist OGB administrators to improve their understanding of the attendant factors of PU and PEOU to form positive user attitudes toward OGB and increase their reuse and repurchasing intentions.Keywords: Online group buying; Technology acceptance model; Consumer characteristics; Social influence; System factors1. IntroductionThe main concept of group buying is that consumers recruit potential consumers to achieve a sufficient order volume for obtaining a discounted group price [Jing andXie, 2011]. Group buying is a common method used by consumers, but group buyers have previously been restricted to asking only peoplewith whom they are familiar to engage in group buying [Liao et al., 2012] .The practice of group buying has existed for many years, but the Internet has made it much more practical than before [Anand and Aron, 2003].By using the Internet, buyers with common interests can connect easily without the involvement of an established acquaintance or geographical limitations [Yuan, 2004] and, thus, OGBcan eliminate the restrictions of traditional group buying [Liao et al., 2012]. Research has suggested that online group-buying (hereafter, OGB)web sites are a particularly effective form of buying [Liao et al., 2012]. OGB web sites has therefore made rapid progress in recent years [Matsuo, 2009]. OGB web sites such as Groupon (www.groupon.com) and LivingSocial (www.livingsocial.com) negotiate with businesses to provide members with substantial discounts [Coulter and Roggeveen, 2012]. In addition to setting low prices to attract OGB web sites users and persuade them to purchase products and services, Ihergo (www.ihergo.com.tw), for example, updates product information daily, which includes multiple upcoming products and the main product features [Ku, 2012]. AlthoughOGB web sites have grown dramatically in the past several years in Taiwan (e.g., GOMAJI, Groupon, 171ife, Ihergo, GoodLife), retaining Web users who continue to use these sites isa critical concern for OGB managers.Increasingly more online consumers are attracted to OGB, causing widespread academic attention [Anand and Aron, 2003].Certain studies have focused on the price-discovery mechanism [Anandand Aron, 2003; Matsuo, 2009], whereas several consumer studies have focused on consumer motivations such as price advantage, discount amount, novelty, and extraordinary offers [ErdogmusandCicek, 2011], as well as gender difference in OGB buying preferences [Liao et al., 2012]. Despite these findings and their insights into OGB literature, research investigating factors that form positive consumer attitudes and intent to reuse OGB web sites is minimal. Based on our research, only one study has explored the factors affecting OGB behavioral intention [Tsai et al., 2011], and their findings indicated that perceived usefulness (PU) and perceived ease of use (PEOU) are antecedent factors of OGB intention. …

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