Modeling the determinants of consumers' attitudes toward online group buying: Do risks and trusts matters?

  • Norazah Mohd Suki, Norbayah Mohd Suki
  • Journal of Retailing and Consumer Services, May 2017, Elsevier
  • DOI: 10.1016/j.jretconser.2017.02.002

Consumers' attitudes toward online group buying

What is it about?

The aim of this research is to investigate the determinants of consumers’ attitude towards online group buying (OGB). Furthermore, this study compares male and female shoppers based on their purchasing behavior in OGB.

Why is it important?

Online retail managers should augment customers’ trust and confidence when participating in OGB and customers’ knowledge in its products and services delivered via network group-buying platform. Specifically, online retail managers should improve their transaction security mechanisms and Internet technology to dwindle consumers’ perceived risks in terms of financial, product and time risks. In addition, online retail managers should strengthen customers’ trust and grow online trading confidence when executing OGB. With sufficient knowledge of network group-buying platform, customers would develop more trust to the security of online group-buying platform which lessen the risk cost thereafter. The wide utilization of electronic payment systems including credit cards, PayPal, Google Wallet, etc. among online vendors would enable online payment for goods and services. The effects of financial risk, product risk, time risk, perceived reputation, structural assurance and website trustworthiness jointly accounted for 52 percent of the total variance explained in consumers’ attitude towards OGB, signifying the viability of the proposed method to systematically and precisely investigate the significant factors. These quantitative empirical results transport new and substantial ideas into the marketing model and add to the emergent works around consumers’ OBG behavior.

Perspectives

Professor Dr Norazah Mohd Suki
Universiti Utara Malaysia

A PLS-SEM approach revealed that website trustworthiness was the strongest predictor of consumers’ attitude towards OGB. Consumers noted that the site of initiator appeals to be more trustworthy than other sites and delivers every promise made. Indeed, they felt trusted for their group buying on the Internet when clear legal privacy statements including guarantees are available on the websites. They were assured that initiator’s protective measures for online payment are secured. The reliability and validity of the measurement items used and collection of data via survey questionnaires clearly confirmed the robustness of the research methodology applied which led to the creation of reliable and valid discoveries. Online retail managers should improve their transaction security mechanisms and Internet technology to dwindle consumers’ perceived risks in terms of financial, product and time risks, strengthen their trusts, and grow online trading confidence when executing OGB. With sufficient knowledge of network group-buying platform, customers would develop more trust to the security of online group-buying platform which lessen the risk cost thereafter. The viable quantitative empirical results transport new and substantial ideas into the marketing model as it systematically and precisely investigates the significant factors and adds to the emergent works around consumer OGB behavior.

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http://dx.doi.org/10.1016/j.jretconser.2017.02.002

The following have contributed to this page: Professor Dr Norazah Mohd Suki and Assoc. Prof. Dr. Norbayah Mohd Suki