Instructor: Kate Chen Presenter: Erin Hsu December 28, 2009 Consumer’s Group-Buying Behaviors on the Internet: An example at Chaoyang University of Technology Instructor: Kate Chen Presenter: Erin Hsu December 28, 2009

Contents Introduction Literature Review Methodology

Introduction Research Background Statement of the problem Purpose of the study Research questions

Research Background More and more retailers are using Internet auctions as an alternative way of selling their products.

Research Background (eBay 2005) By 2005, more than 724,000 American retailers used the Internet auction website (eBay.com) be a major transaction mechanism; 1.5 million individuals increased their income by selling product on eBay. (eBay 2005)

Research Background (Gopal et al. 2006) The rapid development of Internet auction is due to the Internet created a different way of auction items. Items on the Internet can be sold and transaction easily, and costs are low. (Gopal et al. 2006)

Research Background Traditional auctions tend to be short duration, most Internet auctions tend to last for days. This different way of selling products has led to the creation of new auction design features.

Statement of the problem In the past years, majority of group-buying researches focused on price be discussion, but consumer’s decision-making process not only consider economic factors but also be influenced by other reasons.

Purpose of the study to investigate the effects if consumer’s online group-buying behavior with applying viewpoints of economic and psychology.

Research Questions 1. What reasons make price be influential factor when consumer are conducting group-buying behavior? 2. If trust affected consumer’s re-patronage behavior on the viewpoint of psychology?

Literature Review Group-Buying Online Group-Buying Economic viewpoint of Group-Buying Psychology viewpoint of Group-Buying Re-group-buying intention and Re-group-buying behavior

Group-Buying (Anand & Aron, 2003) Group-buying : 1. demand aggregation 2. Volume discounting Group-buying is an activity gathering consumers' demands to reduce the prices. (Anand & Aron, 2003)

Group-Buying For supplier, expense cost of group marketing is lower than individual marketing. (Rha & Widdows, 2002)

Online Group-Buying a network platform to offer consumer with purchasing several products on the internet that could not limited by location or a single shop. negotiate prices with suppliers and get products with low price. An originator order products and send to members. (Anand & Aron, 2003; Chen et al., 2007; Kauffman & Wang ,2001)

Economic viewpoint of Group-Buying Demand externalities indicate group-buying members increased will affect other members who have no purchase intention originally. (Kauffman & Wang, 2001)

Economic viewpoint of Group-Buying Price Conscience means consumer’s emphases on price. Price means low price. For price-sensitive consumers, low price will influence their purchase intention greatly. (Lichtenstein, Ridgway, & Netemeyer,1993)

Psychology viewpoint of Group-Buying Catherine et al. (2002) deemed three reasons to affect member’s trust worthiness: 1. Member respondency 2. Individual information credibility 3. Disposition of trust

Re-group-buying intention and behavior Re-group-buying behavior is when consumers have re-patronage intention, consumers process group-buying auction constantly. shopping intention affect shopping behavior (Ajzen &Fishbein,1980)

Methodology Research Framework Research Hypotheses Data collection Instrument Data Analysis

Research Framework Economic viewpoint of Group-Buying Purchase intention Psychology viewpoint of Group-Buying H2

Research Hypotheses H1a: Demand externalities affect consumer’s re-group-buying intention. H1b: Price Conscience affect consumer’s re-group-buying intention.

Research Hypotheses H2a: Member respondency affect consumer’s reliance H2b: Credibility affect consumer’s reliance H2c: Disposition of trust affect consumer’s reliance

Chaoyang University of Technology Participants The undergraduates of Chaoyang University of Technology Participants Questionnaire 300 copies Sampling Convenience sampling

the 5-point Likert Scale Instrument Questionnaire the 5-point Likert Scale 1 2 3 4 5 Strongly disagree Strongly agree

Data Analysis SPSS version 12.0 Descriptive statistic analysis Reliability analysis Validity analysis Exploratory factor analysis

Thanks for your attention