How signaling mechanisms reduce “lemons” from online group buying (OGB) markets? A study of China

2018 ◽  
Vol 48 (7) ◽  
pp. 658-681 ◽  
Author(s):  
Mohammad Alamgir Hossain ◽  
Shams Rahman ◽  
Tamgid Ahmed Chowdhury ◽  
Caroline Chan ◽  
Xiaoyan Yang ◽  
...  
Keyword(s):  
Information Asymmetry ◽  
Signaling Theory ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Research Model ◽  
Content Type ◽  
Group Buying ◽  
Signaling Mechanisms ◽  
Wide Range ◽  
Online Group

PurposeA major transformation in retail logistics over the few years is backed by enormous improvements in internet technologies. It is now easy for e-retailers to entertain delivery progression, or consumers can share use-experience with future customers and thereby reducing information asymmetry. The purpose of this paper is to investigate the effect of different signals on consumer behavior in the presence of information asymmetry, in the context of online group buying (OGB) markets in China.Design/methodology/approachBased on the lemon market theory (LMT) and signaling theory, the study develops a research model of the OGB consumers’ context in China, which is validated using data from an online survey. A total of 528 responses are used for data analysis applying structural equation modeling technique.FindingsThe findings of the study show that perceived vendor quality (PVQ) and perceived product quality (PPQ) have significantly positive effects on intention to purchase from OGB websites. PVQ is associated with perceived reputation and perceived trustworthiness (PT) of vendor, and the determinants of PPQ are quality assurance information of products, and information about mer-chants. Further, PT has a mediating effect, while asymmetry of information has a moderating effect.Research limitations/implicationsThe research model is valid as a generic OGB model that can be investigated in other contexts to understand the generalizability of the findings. Future research is needed to incorporate additional relevant factors (e.g. price, advertising activity/investments) that may help increase the acceptability of the model to a wide range of e-commerce contexts. Two of the control variables (gender and prior internet experience) were found to be significant; this could be further examined in future studies to determine the relative impact on each causal relationship.Originality/valueWhereas prior studies in the domain of consumer service proposed different signaling mechanisms that were believed to eliminate information asymmetry from a market, the study sheds light on the effectiveness of the signals in the OGB context. This is a unique effort that applies and extends LMT and signaling theory in OGB context by theorizing the associated dimensions and their causal effects.

Consumer decision journey for online group buying: psychological and intentional procedure perspectives

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shu-Chiung Lin ◽  
Hsiao-Ting Tseng ◽  
Farid Shirazi
Keyword(s):  
Food Industry ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Research Model ◽  
Repurchase Intention ◽  
Consumer Decision ◽  
Content Type ◽  
Group Buying ◽  
Online Group

PurposeThis study investigates the relationship between buyers’ psychological antecedent and repurchase intentions in online group buying. Considering and evaluating pre-purchase, the authors measure the buyers’ overall experience of online group buying through their perceived value (PV) and risk. This study examines the influence of PV and perceived risk (PR) on positive electronic word-of-mouth (eWoM) communication and repurchase intention in online group buying.Design/methodology/approachThe authors verify the research model using SPSS and the structural equation modeling-partial least square (SEM-PLS) to analyze 839 convincing respondents. This quantitative research provides insights into online group buying, including the food industry.FindingsThe results demonstrate that the buyers’ PV of online group buying enhanced positive eWoM communication and repurchase intention. The willingness of buyers to spread positive eWoM indicates their recognition and satisfaction with a product or brand. Thus, they have the behavioral intention to repurchase in online group buying. The study found that while positive eWoM communication significantly impacts repurchase intention, PR negatively affects PV. The research provides theoretical and practical implications at the end of the study.Research limitations/implicationsThis study has some limitations. First, the study only used PV and PR to measure consumers’ considerations and evaluations of the initial stage in the consumer decision journey. Future studies can include more dimensions that may further affect these considerations and assessments to verify the research model. Second, the study only used positive eWoM communication to measure the “enjoy-advocate-bond” of consumption and usage in the post-purchase stage.Originality/valueThe study proposes the sequential relationship in the psychological decision procedure of participating in online group buying and provides valuable managerial implications for managers operating online group buying on third-party platforms. The findings provide good knowledge for the food industry to stay connected with customers and develop their satisfaction.

Understanding group-buying websites continuance

2015 ◽  
Vol 25 (5) ◽  
pp. 767-793 ◽  
Author(s):  
Hong Zhang ◽  
Yaobin Lu ◽  
Sumeet Gupta ◽  
Ping Gao
Keyword(s):  
Web Sites ◽  
Web Site ◽  
Consumer Satisfaction ◽  
Critical Mass ◽  
Site Quality ◽  
Research Model ◽  
Continuance Intention ◽  
Content Type ◽  
Group Buying ◽  
Online Group

Purpose – Sustainable success of group-buying web sites implies that consumers not only accept them initially but also use them continuously. Most group-buying web sites, however, are unable to achieve such sustainable success. Drawing on expectation-confirmation model (ECM), the purpose of this paper is to examine the factors that influence group-buying web sites continuance. Design/methodology/approach – In total, 605 valid responses were collected via a survey of a leading group-buying web site in China. Structural equation modeling was used to test the research model. This study also compared the three competing models of continued use behavior, namely, ECM, the research model and the integrated model. Findings – The results show that perceived web site quality, perceived price advantage and confirmation are important determinants of consumer satisfaction, while perceived web site quality, perceived reputation, satisfaction and perceived critical mass significantly influence consumers’ continuance intention. The research model accounts for more variance in satisfaction and continuance intention than ECM and is the best-fitting model among the competing models. Originality/value – Drawing on ECM, this research proposes a model by incorporating three online group-buying characteristics (perceived price advantage, perceived reputation and perceived web site quality) and two social influence factors (subjective norm and perceived critical mass). Specially, this study uses these three online group-buying characteristics to represent perceived usefulness in ECM. These constructs are found to influence consumer satisfaction and continuance intention. This study extends ECM and provides a better explanation of consumers’ post-purchase behavior in the online group-buying context.

Studying the relationship between the perceived value of online group-buying websites and customer loyalty: the moderating role of referral rewards

2018 ◽  
Vol 33 (5) ◽  
pp. 665-679 ◽  
Author(s):  
Ya-Ling Chiu ◽  
Lu-Jui Chen ◽  
Jiangze Du ◽  
Yuan-Teng Hsu
Keyword(s):  
Customer Loyalty ◽  
Affective Commitment ◽  
Perceived Value ◽  
Equation Modeling ◽  
Content Type ◽  
Group Buying ◽  
Revisit Intention ◽  
The Impact ◽  
The Relationship ◽  
Online Group

Purpose The purpose of this study is to examine the effect of perceived value on customer loyalty through affective commitment in the online group-buying (OGB) context. This paper addressed the following questions: what are the factors affecting customer loyalty (i.e. revisit intention and buy more intention); and how do referral rewards moderate the impact of affective commitment on customer loyalty? Design/methodology/approach All data were collected from OGB websites’ members in Taiwan. The total number of respondents to the online survey was 403. The data were analyzed using structural equation modeling (SEM) to test a perceived value–commitment–loyalty model. Findings This study shows that three proposed antecedents (i.e. OGB scheme value, hedonic value and social value) can trigger customer loyalty through affective commitment. Monetary savings, a variety of merchandise and aspirational products are all critical OGB scheme value components. The results also show that referral reward importance positively moderates the relationship between affective commitment and revisit intention. Practical implications The findings have implications for managing people and work tasks in OGB websites. First, understanding the importance of dimensions of value should enable OGB managers to develop more accurate targeting strategies. This study provides guidance on the design of the platform and the OGB scheme, for the effective allocating of marketing resources. Second, a referral reward mechanism can be a critical CRM tool; in addition to the potential to attract new customers, they can also help to retain existing customers. This mechanism is a very effective method to enhance customer stickiness. Originality/value The marketing literature generally recognizes the importance of developing and maintaining long-term relationships with customers. This study is the first one to explore the importance of affective commitment in developing and sustaining loyal relationships in the OGB context. Referral rewards are an important moderator variable: affective commitment has a stronger effect on the revisit intention when the referral rewards are high. The findings of this study provide insights into how OGB website developers can create customer commitment and more effectively retain existing customers through the use of referral rewards.

Does altruism matter on online group buying? Perspectives from egotistic and altruistic motivation

2015 ◽  
Vol 28 (3) ◽  
pp. 677-698 ◽  
Author(s):  
Wen-Lung Shiau ◽  
Patrick Y.K. Chau
Keyword(s):  
Structural Equation ◽  
Online Survey ◽  
Equation Modeling ◽  
Survey Method ◽  
Psychological Processes ◽  
Content Type ◽  
Group Buying ◽  
Altruistic Motivation ◽  
Positive Effects ◽  
Online Group

Purpose – The purpose of this paper is to identify whether altruistic motivation is a significant factor in online group buying and to examine the effects of altruistic and egotistic motivation on online group buying intention through the psychological processes of trust and satisfaction. Design/methodology/approach – A field study on Ihergo (www.ihergo.com/) was chosen because it is the largest online group buying marketplace in Taiwan. An online survey method was used to collect data. Returned questionnaires numbered 302 responses with 20 incomplete data, resulting in 282 valid responses for data analysis. Collected data were analyzed using structural equation modeling. Findings – The findings of the study shows that altruism is relevant to online group buying, and trust and satisfaction have significantly positive effects on online group buying intention. The results emphasize that altruism, reciprocity, and reputation of motivations are significantly positive predictors of trust. Altruism and reciprocity have significantly positive effects on satisfaction, whereas reputation does not. Research limitations/implications – Altruism, reciprocity, and reputation represent three key elements of online group buying behavior. Integration of the altruism, reciprocity, and reputation results in a better explanation on online group buying intention through the psychological process, trust, and satisfaction. This study extends the value of online group buying and sheds light on the potential effects of altruistic and egotistic motivation on online group buying intention. Practical implications – Online group buying is more complex than individual online shopping and is not easy to fulfill customer requirements. To satisfy online group buying, e-vendors might provide altruistic activities, enhance reciprocal services and products, develop better reputation mechanisms, and present an easier approach to encourage online group buying on the web site. Originality/value – To the best of the knowledge, this is first paper to examine the effects of altruism on online group buying. The contribution of this study draws attention to the altruistic value of electronic commerce, by theorizing and validating the effects of altruistic and egotistic motivation on online group buying intention through psychological processes (trust and satisfaction).

Impact mechanism of direct supervisor’s leadership behaviors on employees’ extended use of information technologies

2019 ◽  
Vol 32 (4) ◽  
pp. 626-645 ◽  
Author(s):  
Zhen Shao
Keyword(s):  
Transformational Leadership ◽  
Structural Equation ◽  
Information Technologies ◽  
Leadership Behaviors ◽  
Mediating Effect ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Job Autonomy ◽  
Research Model ◽  
Content Type

Purpose The purpose of this paper is to examine the mediating effect of job autonomy on the relationship between direct supervisor’s transformational leadership behaviors and employees’ extended use of information technologies (IT). In addition, this study considers IT innovativeness as a significant moderator in the research model, in order to examine if the relative influences of leadership behaviors on IT extended use are contingent upon employees’ IT innovativeness. Design/methodology/approach A field survey was conducted in China and empirical data were collected from 299 employees who use IT in support of daily work. Structural equation modeling technique was used to examine the research model and corresponding hypotheses. Findings The empirical results indicate that: three dimensions of transformational leadership, specifically interpersonal consideration, intellectual stimulation and inspirational motivation, are significant antecedents of employees’ IT extended use; perceived job autonomy partially mediates the relationships between transformational leadership behaviors and IT extended use; and employees’ IT innovativeness positively moderates the effects of transformational leadership behaviors on IT extended use. Practical implications This study can provide first-line managers with a better understanding of how to stimulate employees to make an extended use of IT by granting them more freedom in job assignments. Furthermore, the managers also need attend to subordinates’ personal IT innovativeness when exhibiting transformational leadership behaviors. Originality/value This study contributes to the extant literature of IT extended use through the lens of transformational leadership and job characteristics theory. In particular, this study identifies the boundary condition of the proposed research model by uncovering the moderating effect of IT innovativeness between transformational leadership behaviors and IT extended use.

Impact of initial trust, involvement, and mood on trusting belief

2016 ◽  
Vol 26 (1) ◽  
pp. 91-108 ◽  
Author(s):  
Ying-Hueih Chen ◽  
Jyh-Jeng Wu ◽  
Shu-Hua Chien
Keyword(s):  
Mediating Effect ◽  
Equation Modeling ◽  
Research Model ◽  
Initial Trust ◽  
Content Type ◽  
Trust Development ◽  
Customer Involvement ◽  
Research Findings ◽  
Customer Trust ◽  
The Impact

Purpose – The purpose of this paper is to incorporate social exchange theory to elaborate on the antecedents that underlie consumers’ trust of innovative financial product providers. In particular, this study investigates the mediating role of positive moods in stimulating customer trust. Design/methodology/approach – The research model was tested using data collected from 440 elite customers from top-ten financial holding companies in Taiwan. Structure equation modeling was employed to verify and validate the research model. Findings – The findings suggest that initial trust and customer involvement significantly and positively impact customer moods. In addition, customer initial trust, involvement, and positive moods significantly influence customers’ trusting belief of service providers. Research limitations/implications – This study focussed on the financial services industry only. While this industry represents an ideal new product development context, future research is needed to test the theory in different industries. Practical implications – The research findings advance the understanding of how to successfully build customer trust for innovative products. Originality/value – Current research unfolds the impact of customer involvement on trust development and supplements existing trust study findings by examining the mediating effect of positive mood on trust development through quantitative research. The research findings increase the understanding of how customers develop trust with service provider.

scholarly journals Factors affecting satisfaction and loyalty to online group buying

2020 ◽  
Vol 27 (3) ◽  
pp. 211-228
Author(s):  
Jorge Mazza Garcia ◽  
Otávio Bandeira De Lamônica Freire ◽  
Eduardo Biagi Almeida Santos ◽  
Josmar Andrade
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Brand Image ◽  
Purchase Behavior ◽  
Equation Modeling ◽  
Repurchase Intention ◽  
Content Type ◽  
Group Buying ◽  
General Satisfaction ◽  
Online Group

PurposeIn 2008, a phenomenon emerged in online retail that attracted the attention of many people, creating a new virtual model of commerce. This phenomenon was called online group buying and arrived in Brazil in 2010. The purpose of this study was to identify the factors that affect satisfaction and loyalty to group buying sites.Design/methodology/approachThrough structural equation modeling, the relationships between the attractiveness of discount rates, service quality, popularity, online brand image, antecedent word of mouth (WOM), creativity and trust in relation to consumer general satisfaction, declared loyalty, repurchase intention and positive WOM were observed. A total of 727 valid questionnaires were collected from online group buyers to test the 11 hypotheses proposed in this study.FindingsThe main contribution of this study was that it identified the strong influence of service quality, popularity and online brand image on consumer general satisfaction, and the influence of service quality, trust and general satisfaction on repurchase intention. It also identified the influence of trust, creativity and general satisfaction on declared loyalty, and finally, the influence of trust and general satisfaction on positive WOM.Research limitations/implicationsBecause of the extensive and robust model, other statistical interactions among the constructs were gauged. It is possible that new structures and paths for alternative models can be proposed in the future with the inclusion of new relationships not analyzed in the present study. Furthermore, future studies should consider testing the generated model in other countries, as the particular features of collective purchasing in Brazil should be taken into account.Practical implicationsIn addition to being concerned with the attractiveness of discounts, marketing managers of group buying sites should concentrate their efforts on strengthening perceived quality, image, trust and the creativity of the site to ensure customer loyalty.Social implicationsThe online group buying business model that was established in Brazil differs significantly from the American and European models. As many online group buying studies have been conducted in these markets, Brazilian consumers will enjoy substantial gains in the quality of the service provided by collective purchasing sites through the development of actions that focus on improving the factors that affect these consumers.Originality/valueThe originality of this study lies in the development of a single model that tests a set of factors gauged separately in other studies related to online purchase behavior in a broader perspective.

Emotion as signal of product quality

2019 ◽  
Vol 30 (2) ◽  
pp. 463-485
Author(s):  
Xiaopan Wang ◽  
Junpeng Guo ◽  
Yi Wu ◽  
Na Liu
Keyword(s):  
Information Asymmetry ◽  
Product Quality ◽  
Signaling Theory ◽  
Cognitive Effort ◽  
Emotional Content ◽  
Mediating Effect ◽  
Content Type ◽  
Customer Reviews ◽  
Online Customer Reviews ◽  
Perceived Product Quality

Purpose Information asymmetry is an inevitable issue in e-commerce and largely hampers the development of online shopping. The purpose of this paper is to propose a model to investigate the emotional content of online customer reviews, which are considered an efficient way to reduce information asymmetry, as a potential signal of product quality. The moderating effects of perceived empathy and cognitive effort are also explored on the basis of signaling theory. Design/methodology/approach A laboratory experiment with 120 subjects was used to empirically test the proposed research hypotheses. The subjects were randomly assigned to two treatment groups, with 60 subjects in each group. ANOVA, linear regression and binary logistic regression were used. Findings The emotional content of online customer reviews positively influences perceived product quality, which subsequently and positively affects purchase decisions. The emotional content of online customer reviews greatly influences perceived product quality when perceived empathy or cognitive effort is high. Originality/value This study is the first to extend extrinsic cues to emotional content on the basis of signaling theory and reveals the important role of emotional content of reviews. Moreover, the mediating effect of perceived product quality and the moderating effect of perceived empathy and cognitive effort illustrate the mechanism of the influence of emotional content on purchase decision. Findings demonstrate the positive signal of emotional content and provide important practical implications for sellers and customers.

Child weight and parental feeding practices: a child-responsive model

2015 ◽  
Vol 45 (1) ◽  
pp. 174-188 ◽  
Author(s):  
Elisabeth Lind Melbye ◽  
Håvard Hansen
Keyword(s):  
Weight Status ◽  
Feeding Practices ◽  
Mediating Effect ◽  
Mediating Effects ◽  
Parental Concern ◽  
Content Type ◽  
Parental Feeding Practices ◽  
Child Weight ◽  
Parental Feeding ◽  
Wide Range

Purpose – The majority of previous studies on parental feeding practices have focused on the effect of controlling feeding strategies on child eating and weight (i.e. parental influence on children). The present study turns the arrow in the opposite direction, and it aims to test a child-responsive model by exploring the process in which child weight status might influence parental feeding practices, addressing potential mediating effects of parental concern for child weight (i.e. child influence on parents). Design/methodology/approach – A cross-sectional survey was performed among parents of 10- to 12-year olds (n = 963). The survey questionnaire included measures of parental feeding practices and parents’ reports of child weight and height. Stepwise regressions were performed to reveal potential mediating effects of parental concern for child weight status on the associations between child BMI and a wide range of parental feeding practices. Findings – Our results suggest a mediating effect of parental concern for child overweight on the associations between child body mass index and controlling feeding practices such as restriction for weight and health purposes and responsibility for determining child portion sizes. Originality/value – This study provides an extension of previous research on parental feeding–child weight relationship. It includes a wider spectrum of feeding variables, and integrates parental concern for both child who is overweight and child who is underweight as potential mediators of the associations between child weight and parental feeding practices. Moreover, it has its focus on preadolescent children, while previous studies have focused on infants and young children.

Assessment of knowledge process capabilities toward project management maturity: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adnan Alghail ◽  
Liu Yao ◽  
Mohammed Abbas ◽  
Yahia Baashar
Keyword(s):  
Knowledge Management ◽  
Project Management ◽  
Public Universities ◽  
Equation Modeling ◽  
Success Factor ◽  
Research Model ◽  
Maturity Level ◽  
Knowledge Process ◽  
Content Type ◽  
The Impact

Purpose The reasons behind the project management failure of higher education institutions (HEIs) have been researched for the past few years. One of the reasons is the lack of tools to integrate their knowledge process capabilities (KPC) with their project management (PM) to measure maturity by assessing these capabilities. Various project management maturity (PMM) models exist. Yet, there is a limited number of empirical studies that support the four integrations of KPC and PMM. Therefore, this study aims to propose a new heretical model, namely, KPC-knowledge management (KM) and evaluates a research model that includes the four KPC as an antecedent to PMM. Design/methodology/approach The suggested research model is assessed by using partial least squares structural equation modeling. Furthermore, the study's hypotheses were examined based on a sample of 352 respondents from the project management departments in 10 public universities in Yemen. Findings Analysis revealed that the derived PMM status could be benchmarked with the project management maturity model. Also, the study found that integrating the KPC into PM enables the institutions to perform critical tasks and value chain activities and enhance the PM maturity level as well. In contrast, if one of the capabilities does not positively impact PMM, it affects the maturity level of the entire project. Research limitations/implications The findings are obtained concerning data collected from public universities and represent the Yemeni context, limiting the generalization on a different geographical area. Also, this proposed model can be evaluated in a practical way like conducting a focus group, a set of interviews with specialists, a case study or action research. The qualitative research will help academics to validate our proposal for future research purposes. Practical implications The proposed approach may be adapted to the characteristics of organizations involved in projects as external performers (project-based organizations) and not just the HEIs projects. This study provides managers and policymakers with insights into assessing PMM and improving their organizational effectiveness when deciding which KPCs to focus on in the future. Social implications This study contributes to the current PM awareness in Yemen and facilitates its success using the knowledge processes capabilities in Yemen's HEIs. It encourages organizations to take this opportunity to revive the projects and achieve a maximum level of maturity. Originality/value This study provides new insights into two domains through the link between knowledge management and PM. To the best of the authors' knowledge, this paper is among the first to empirically study the impact of the four KPC toward PMM. It enriches the theoretical perspective of PM. Also, it contributes to the literature on the success factor of KPC, which can be considered to improve organizational performance.

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