Intimate knowledge initiators: Bonding the suppliers and buyers in the online group-shopping environment

Abstract

Purpose

The purpose of this paper is to investigate how marketing capability, dysfunctional conflict, and relationship value affect relational benefits through the relational proclivity between suppliers and initiators in a group-buying web site.

Design/methodology/approach

The initiators selected were those who conducted group buying more than ten times in the group-buying web site. In total, 9,000 invitation e-mails were sent to initiators, of which 389 were returned; the model and hypotheses were tested by using structural equation modeling.

Findings

In online group buying, initiators can know about a new product only through the web site; the marketing capability of suppliers and the relationship value of initiators are positively associated with the relational proclivity between suppliers and initiators. And, the results indicate that the dysfunctional conflict of initiators is not positively associated with the relational proclivity between suppliers and initiators. Finally, The relational proclivity between suppliers and initiators is positively associated with the relational benefit between initiators and buyers.

Practical implications

The supplier and the initiator can work together in brainstorming new products; moreover, initiators can assist suppliers by helping them identify buyers’ demands and giving them relevant feedback.

Social implications

The suppliers’ marketing capability is important for initiators because it can help increase the latter’s ability to catch buyers’ attention. In addition, the initiator and supplier together can think about product innovation and new product designs.

Originality/value

Initiators, as key persons in the group-buying process, serve as a bridge between suppliers and buyers and have a positive impact on group buying. The findings suggest that certain facets of initiators are helpful in explaining the expected product performance of buyers.

Citation

Wu, W.-C., Ku, E.C.S. and Liao, H. (2015), "Intimate knowledge initiators: Bonding the suppliers and buyers in the online group-shopping environment", Internet Research, Vol. 25 No. 1, pp. 67-84. https://doi.org/10.1108/IntR-12-2013-0270