Factors affecting repurchase intention on online group buying websites in China

【Abstract】 The customer dominance business environment is the new trend. So it is necessary to have more understanding about customer behaviors and attitudes. This research aims to examine what are the determinant drivers behind satisfaction， and whether customer satisfaction will influence the repurchase intention on OGB websites in China. More than 200 questionnaires have been distributed and the analytical results from the questionnaire were measured by SPSS and AMOS software. Moreover， the managerial implications for the OGB websites will be given out in the conclusion.

【Key words】Repurchase intention; online group buying; Customer satisfaction

【作者簡介】杨缦卿，陕西工业职业技术学院。

1. Introduction

Online group buying （OGB）， as a new consuming model in China， has brought lots of benefit to the customers. By exploring the driving forces behind the customers satisfaction and relationship between the customer satisfaction and repurchase intention， website operator can get the knowledge about how to improve their business and attract more customers to consume. The aim of this research is to examine what are determinant drivers behind satisfaction and whether customer satisfaction will influence the repurchase intention on online group buying websites in China.

2. Key drivers of customer satisfaction and the model

According to previous research results， cost advantages， customer perceived value and trust will be determined as the main determinant of customer satisfaction. Cost advantage refers to the lower price and lower transaction cost. Trust is of great importance on OGB website. Considering the OGB website features， the presentation and the security offered by the OGB website will be considered as the main trust determinants. The perceived value refers to the consumers comparison between total perceived sacrifices and total perceived benefits. The perceived value can be evaluated by product quality， business service quality and OGB website service quality.

3. Result and discussion

More than 200 questionnaires have been distributed in total. 167 questionnaires are effective questionnaires. With respect to data analysis， a two-step method was applied in this research， including analysis of measurement model and analysis of structural model.

3.1 Measurement model

The measurement model has been evaluated from two aspects. The Cronbachs Alpha coefficient of 8 items is 0.93（greater than 0.7）. The result means that the level of reliability of all items is acceptable. The examination of correlation coefficients indicates great construct validity， because the correlation coefficient between the variable and the total score is greater than the coefficients of association with other variables.

3.2 Structural model

The structural equation model has been analyzed by utilizing AMOS 17.0 software. As shown in the table， the fit of the model is acceptable.

Table 2 shows the standardized regression result， which includes standardized coefficient estimate and result of relations between different variables. Results of this research demonstrate that， under online group buying context， perceived value and trust all positively affect consumers satisfaction. Unexpectedly， the result of the relation between cost advantage and customer satisfaction is negative. researchers just ignored the relationship between discount and the consumers quality perception. Offering low price might have a negative influence on internal reference price and consumers quality perception.

4. Implication

To start with， OGB websites should focus on improving the product quality of OGB deals， including enhancing cost performance and increasing the diversity of products.

Second， OGB website owners should cooperate with high-quality merchants. Before customers make a purchase decision on the OGB website， they will take credibility and reputation of merchants into consideration. The evaluation of this experience could be influenced by service quality during the offline consumption process.

Lastly， improving customer satisfaction and building customer trust on group buying sites are of great importance. Consequently， so as to win the fierce competition in the group buying industry， website should provide reliable deals and a safe payment environment.

References：

[1]Hung S W， Cheng M J ， Hsieh S C . Consumers satisfaction with online group buying – an incentive strategy[J]. International Journal of Retail & Distribution Management，2015，43（2）：167-182.

[2]Yang L M， Yang X Z . A Survey Study of Factors Influencing the Customer Satisfaction of Group Buying Sites[J]. Applied Mechanics and Materials，2013，373-375：2241-2246.