Factors affecting satisfaction and loyalty to online group buying.
| Autor | Garcia, Jorge Mazza |
| Cargo | Determinants of loyalty to online group buying |
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Introduction
The rapid growth of information technology on the Internet and in e-commerce has led to the creation of various business opportunities. The Internet influences people through features such as communication, entertainment, social activities and choices of products (Shiau & luo, 2012).
This situation leads to the possibility of group negotiations known as collective purchasing (Benazzi & Pedra, 2011). Group buying is part of electronic commerce, selling products and services at below-market prices (Lim, 2019). This business model stipulates a minimum number of buyers to guarantee a special offer. If this number of buyers is not achieved, the money is refunded to those who had already paid for the offer. Discounts vary significantly (from50to90% of the normal priceofproductsor services). Special offers have a time limit that varies from 24 to 48 h, with a timer on the screen counting down to the end of the offer.
The group buying business model has attracted attention form the market in a number of countries around the world, such as the United States, China, Taiwan, Canada, Russia, Germany and Brazil (Chiu, Chen, Du, & Hsu, 2018; Lin, Yen, Wang, & Yeh, 2018). In China, over a quarter of the country's internet users--more than 180 m people--had already used group buying sites in 2015 (Xiao, 2018). In the United States, it was estimated that the turnover of this sector in 2015 was over four billion dollars (Lin, Yen, Wang, & Yeh, 2018). Peixe Urbano, the largest player in the market, with over 31.5 m users in the country and over 20.5 m in the rest of Latin America (Mercado & Consumo, 2019), grew over 40% in 2016 and more than 30% in 2017 (Exame, 2018).
However, it is important to highlight that increasing competition on a large scale has created difficulties for companies. In China, the mortality rate was over 70% in 2015 (Xiao, 2018). In the United States, 170 of the 530 group buying sites were taken over or went bankrupt in 2011 (Lin, Yen, Wang, & Yeh, 2018). A number of internal and external factors can lead to the failure of group buying sites. One of these critical factors is not considering the reasons why users visit a site, use it and continue to purchase coupons or simply stop buying and abandon the platform.
Diverse studies have sought a deeper scientific understanding of the phenomenon. Their contributions include adopting new group buying formats, with the addition of affective variables (Ieva, de canio, & Ziliani, 2018; Chiu, Chen, Du, & Hsu, 2018) and an interpretative view of uses and gratifications that motivate online group buying (Xiao, 2018). They also involve the interaction between personality traits and cultural orientation as antecedents of group buying intention (Han & Kim, 2019) and analyses of rewards and their effects on customer loyalty (Chiu, Chen, Du, & Hsu, 2018), as well as responses from consumers to service failure on group buying sites (Lin, Yen, Wang, & Yeh, 2018). Frederico, Teixeira, Gahni, & Andrade (2017) investigated the effect of both service quality and quality of the site on loyalty to group buying sites in the Brazilian context. Nevertheless, the literature has yet to provide a model that simultaneously considers variables related to the quality of the relationship and interaction allied with the attractiveness of a special offer, the creativity of the site and brand image. This way, marketing managers could be provided with a broader vision of group buying behavior, under an integrative perspective, that considers both utilitarian/hedonic aspects, as well as more concrete service-related and abstract brand-related aspects.
In Brazil, the group buying operations were launched differently from other countries. While a relationship network, with discussions of the product or service through the site itself prior to purchase is generated, in Brazil, the group buying user purchases through a more individual process, with little or no interaction with other users. The proposed research problem in this study is to discover, in the Brazilian scenario, the determinants of satisfaction and loyalty on group buying sites. In particular, this study intends to analyze the impact of the attractiveness of discount rates, service quality, popularity, online brand image, antecedent word of mouth (WOM), trust and creativity on satisfaction and loyalty on purchases from group buying sites.
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Theoretical framework
In 2018, the electronic market grew 17.9% compared with the previous year, and 58 m Brazilians made at least one online purchase. Of these consumers, 10 m made their first online purchase, showing an active growth in purchases in the digital environment (E-Bit, 2019). The significant growth of electronic commerce, also known as e-commerce, is an alternative for customers to make purchases quickly and practically, without leaving the house. However, all this growth has to be supported by good presale, sale and postsale strategies. Customers are becoming more and more demanding regarding delivery deadlines and the security and reliability of e-commerce (Coelho Oliveira & Almeri, 2013).
Several changes in technology and, consequently, in forms of consumption, lead to an increase of the number of purchase options on the Internet. Group buying has led to much lower prices than normally practiced on the market (Mendes Filho, Jorge, & De SenaJunior, 2016). Therefore, online group buying is an effective form of commercialization. When using this resource, customers enjoy significant discounts on products and services. Not only does this satisfy customer demand but it also helps sellers to find new ways to leverage product sales and open up new business models. In other words, all parties benefit from these transactions (Liao etal, 2012; Lim, 2019).
However, it has been observed that discounts are not the only factors that influence consumers when visiting these sites (Lim, 2019). Perceived risk and trust are also at play (Dias, Santos, Martins, & Isabella, 2014).
Group buying is defined as occurring when products and services are made available at reduced prices in such a way that it is possible to offer a differentiated discount for a limited time compared with the standard applied by the store (Lim, 2019). Therefore, group buying sites seek to create value for all those involved in the transaction. Decision-making in group buying is mainly based on convenience, low prices, trust in quality standards and consumer habits (Coulter & Roggeveen, 2012; Dias, Santos, Martins, & Isabella, 2014; Lim, 2019). Group buying spreads and makes people purchase quickly and often impulsively (Reck & Basso, 2018). It enables the creation of an online network for discussing purchases, where consumers get in touch with other customers before making purchases. Therefore, group buying could mean a possibility to interact with other customers and share information before making purchases (Ku, 2012).
2.1 General satisfaction
When a group buying site user confirms his/her order, he/she analyzes the purchasing process as a whole and attributes a positive or negative feeling to it. This feeling is the result of the entire purchasing process--for instance, of a coupon purchase and use--and is called satisfaction (Zhang et al, 2013).
General Satisfaction is a strong antecedent variable in the construction of customer loyalty (Oliver, 1997; Dick & Basu, 1994; Laran & Espinoza, 2004). There is a relationship between customer satisfaction and declared loyalty, repurchase intention and positive WOM (Parasuraman, Zeithaml, & Malhotra, 2006; Zhang et al., 2013). Nevertheless, the constitution of a customer's satisfaction will depend on a number of factors that precede this final evaluation. For instance, Abdeldayem (2010) proposed and tested a model that considers both online channel and web-store traits as antecedents of satisfaction with online shopping, moderated by consumer traits. The model is robust in terms of explaining online shopping satisfaction and the majority of the variables can also be used to explain group buying behavior concerning the seek for satisfaction. But there are some particularities that will be addressed by this study.
2.2 Loyalty
Loyalty is a strong commitment from a consumer to repurchase a product or service in the future without considering the marketing strategies and efforts that might influence consumer behavior (Oliver, 1997).
The online purchase scenario is characterized by fierce competition, as consumers have almost instant access to large amounts of information, which heightens competition further still and reduces consumer loyalty (Frederico, Teixeira, Ghani & Andrade, 2017). Attitudinal loyalty is structured in three dimensions: repurchase intention, positive WOM and declared loyalty (Oliver, 1999; Dick & Basu, 1994; Lopes, Hernandez, & Nohara, 2009). It is estimated that when the consumer is satisfied with the group buying site experience, he/she will make further purchases and recommend the platform to other people, meaning that he/she will become loyal to the site.
2.3 Repurchase intention
Repurchase intention is a dimension of attitudinal loyalty that identifies the need to acquire a product or service again following a previous, normally positive, experience (Parasuraman, Zeithaml, & Malhotra, 2006). Oliver (1999) claims that loyalty is a commitment to repurchase or future preference for a product, service or brand. Doney and Cannon (1997) add in their study that customers' trust in service companies can lead to a process of commitment and future purchase intentions. This commitment can lead a consumer to make new searches and acquire coupons on a group buying site.
2.4 Positive word of mouth
Positive WOMisadimension of attitudinal loyalty that identifies consumer behaviorinterms of speaking, commenting and propagating an experience in the negotiation of a product or service following a previous, usually positive, purchase and/or product...
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