Consumers’ satisfaction with online group buying – an incentive strategy

Abstract

Purpose

The purpose of this paper is to propose that online group buying is different from the traditional purchase model in that an aggregation of purchases on the internet can lead sellers to adopt various bargaining strategies. When buyers and sellers do not have the opportunity to meet face to face, consumer satisfaction is an important consideration for sellers.

Design/methodology/approach

This study investigates the influence of sellers’ strategies for offering bargains on consumers’ satisfaction, considering buyers’ characteristics and involvement. Data are analyzed by employing the multivariate analysis of variance.

Findings

The results demonstrate that the stage decreasing range strategy results in the highest level of consumer satisfaction with online group buying. In addition, consumers’ cognitive style, computer self-efficacy and involvement have a significant moderating effect on the relationship between incentive strategy and consumer satisfaction.

Practical implications

The findings show that for group buying consumers, stage decreasing range strategy reveals certain advantages, such as a short waiting time for gathering group buyers. Enterprises or online sellers that propose special offers for online group buying as part of their competitive strategy should consider the stage decreasing range strategy. Moreover, enterprises and sellers can adjust their operations according to consumers’ individual characteristics and construct good relationships in online group buying.

Originality/value

This study has investigated the influence of incentive strategies for offering bargains in online transactions on consumer’s satisfaction. The results of this study will provide some guidelines for managers of the e-retailing firms to maximize their abilities in terms of marketing activities.

Citation

HUNG, S.-W., Cheng, M.-J. and Hsieh, S.-C. (2015), "Consumers’ satisfaction with online group buying – an incentive strategy", International Journal of Retail & Distribution Management, Vol. 43 No. 2, pp. 167-182. https://doi.org/10.1108/IJRDM-09-2013-0183