Academic journal article Journal of Electronic Commerce Research

Unity Is Strength: Understanding Users' Group Buying Behavior in Taiwan from a Collectivism Perspective

Academic journal article Journal of Electronic Commerce Research

Unity Is Strength: Understanding Users' Group Buying Behavior in Taiwan from a Collectivism Perspective

Article excerpt

ABSTRACT

This study proposes a theoretical model from a collectivism perspective to examine the factors affecting buyers' motivation to engage in auctions through online group-buying websites. The model was tested using the data collected from 218 buyers participating in a Taiwan online group-buying website. The results show that the intention to participate in online group-buying auctions significantly affected group-buying behavior, while conformity, attitude, and collective efficacy had significant influences on the intention to participate in online group-buying auctions. The results also indicate that trust in websites, trust in auction initiators, and trust in buyers are the antecedents of attitudes toward online group-buying auctions. Implications for theory and practice and suggestions for future research are discussed.

Keywords: Online group-buying auctions; Collective efficacy; Trust; Conformity; Theory of planned behavior (TPB)

1. Introduction

Recent e-commerce developments have created new opportunities for marketers to develop innovative selling strategies [Jing and Xie 2011] and provide a diverse range of transaction types for consumers as well. Among the various types of business models emerging, online group-buying constitutes a substantial proportion of the online customer market. Group-buying auctions, such as Groupon, are transaction mechanisms in which buyers are recruited in order to generate volume orders, so as to create a basis for lower transaction prices [Kauffman et al. 2010a]. By the end of 2012, Groupon had 41 million active customers. Moreover, according to the China E-Business Research Center, an independent research institute, the transaction value of the group buying market in China reached US$5.5 billion in 2012 [Statista 2013]. Because online group-buying is a unique phenomenon and more complex than traditional e-commerce models (e.g. business to customers (B2C) or customers to customers (C2C)), group-buying auctions provide interesting and novel opportunities for both practitioners and researchers.

Prior information systems (IS) and marketing researchers have discussed online group-buying in different ways. Some studies have stressed the functionality and usability of group buying systems [Zhu et al. 2010; Tsai et al. 2011]. Their findings show that technological factors such as navigation functionality, communication support and systems quality can enhance the buyers' perceptions of shopping experiences. Some studies have concentrated on determining the basic antecedent variables for group-buying arising from psychological factors [Chen 2012; Shiau and Luo 2012; Cheng and Huang 2013; Wang and Chou 2014]. For example, the reciprocity and reputation of a buying group, the relational and structural embeddedness of initiators, as well as the price consciousness and price sensitivity of buyers have all been analyzed. Other studies have focused on the important role trust plays in affecting group-buying intention [Ku 2012; Shiau and Luo 2012]. Although a substantial number of studies have been carried out to explore the critical factors that affect buyers' purchasing behavior, the present study attempts to address two research gaps by proposing a novel model and empirically testing buyers' purchasing behavior in terms of the group nature of action.

First, since B2C and C2C are characterized as individualistic in nature, whereas group buying auctions are collectivistic [Bin and Sun 2004; Wei et al. 2011; Noh et al. 2013], relatively few studies have examined online group-buying auctions in terms of social and psychological factors from a collectivism perspectives. Online group-buying auctions can be viewed as buyer-driven sites, where buyers can form buying groups by their own initiative to generate volume orders to purchase the products they want. Once enough buyers are recruited to purchase a minimum quantity of products, the auction initiators will negotiate with vendors over prices to get volume discounts [Kauffman et al. …

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