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Overview
A recent survey has reported that Australians are shopping online more frequently than
other developed nations (Parker, 2013). The annual World Internet Project has found the
number of online purchases made by Australians grew by more than 46 per cent between
2011 and 2013. According to the Australian Bureau of Statistics, figures show $258 billion
being spent on retail, with Roy Morgan estimating 9 per cent of that being spent online
(Bainbridge, 2013). Furthermore, some of the most popular online purchases were in
leisure and travel, which made up 45 per cent of online purchases, followed by fashion,
at 23.4 per cent (Bainbridge, 2013).
A recent and increasingly popular trend in internet retailing is online group buying
(Birmingham, 2014; Cheng and Huang, 2013; Hsu et al., 2014; Kitchen et al., 2014). Online
shoppers are now more active in searching for and obtaining electronic coupons and
group buying deals that will offer the best value at bargain prices (Birmingham, 2014;
Fortin, 2000; Hsu et al., 2014). These electronic deals (e-deals) can be obtained from a
cluster of “daily deals” web sites such as “Groupon”, “Scoopon”, “OzBargain”, and Marketing Intelligence & Planning
“CatchOfTheDay”. Internet group buying sites such as “Groupon” negotiate large Vol. 33 No. 5, 2015
pp. 763-783
discounts with local area businesses by promising to deliver a large number of customers. © Emerald Group Publishing Limited
0263-4503
These deals are then offered to site members. Groupon is the largest group buying site, DOI 10.1108/MIP-05-2014-0081
MIP serving 140 markets around the world. LivingSocial (serving 52 markets) is the second
33,5 largest site (Coulter and Roggeveen, 2012).
Most consumers’ e-shopping behaviour studies can be divided along three broad
streams. The first stream of research focuses on the impact of the characteristics of
e-shopping as a shopping channel. Specifically, the dimensions of channel characteristics
of e-shopping include e-shopping service quality (Ahn et al., 2004; Birmingham, 2014;
764 Lee, 2002; Ratten, 2010), relative advantages (Goldsmith and Goldsmith, 2002; Kitchen
et al., 2014; Koyuncu and Bhattacharya, 2004; Verhoef and Langerak, 2001), perceived
risk of and confidence in e-shopping ( Jarvenpaa et al., 2000; Liu and Wei, 2003; Liu et al.,
2005; Ratten and Ratten, 2007), and trust (Corbitt et al., 2003; Grazioli and Jarvenpaa,
2000; Hsu et al., 2014 Liu et al., 2005).
The second stream of research focuses on the vendor and product characteristics. For
example, a characteristic of online group buying sites is that promotional prices are only
valid provided a certain number of consumers sign up for the deal. If not enough consumers
select to purchase, then the deal does not move forward (Coulter and Roggeveen, 2012).
Moreover, online group buying sites are therefore similar to online group auction sites
(e.g. Zag.com; Pikaba.com) in that network externalities are present up until the deal is
“tipped” (i.e. the minimum purchase number has been reached) (Kauffman et al., 2010). Much
of the early research on internet shopping behaviour has focused on predicting the type of
consumer who is likely to use the internet to search for and buy products.
The third stream of research focuses on consumer characteristics (Babin et al., 1994;
Khare, 2014; Phau and Poon, 2000; Wolfinbarger and Gilly, 2001). These include
consumer’s shopping orientations (Li et al., 1999; Koyuncu and Bhattacharya, 2004;
van der Heijden and Verhagen, 2004), personality, social and psychological characteristics
(Blake et al., 2003; Donthu and Garcia, 1999; Kitchen et al., 2014; Limayem et al., 2000),
computer/internet experience (Bellman et al., 2000; Forsythe and Shi, 2003), in-home
shopping experience (Cho, 2004; Shim et al., 2001), and socio-demographics (Bellman
et al., 2000; Bhatnagar and Sanjoy, 2004; Kitchen et al., 2014; Ratten and Ratten, 2007).
With the rapid growth in online retailing, social media channels and internet
technologies, electronic commerce has become a large and crucial segment of the new
digital economy. To this end, the underlying reasons for the differences in consumer
choice characteristics and satisfaction indicators in the context of online group buying
sites or e-coupon or deal providers is still not well understood (e.g. Dawson and Kim, 2009;
Dholakia, 2010; Phau and Poon, 2000; Santos and Ribeiro, 2012; Trenwith, 2011). As such
there is an inherent need to investigate the nature and perceptions of retailers, the
characteristics of online shoppers, and the suitability of different types of products and
services (in the form of online daily deals) with respect to online shopping in Australia.
The study aims to examine two research objectives closing a number of inherent gaps
in the literature. First, it is to examine the impact of antecedents (e.g. “perceived value” and
“price consciousness”) against consumer attitudes towards e-deals (Phau and Poon, 2000;
Santos and Ribeiro, 2012). Second, it is to examine the relationship between consumer
attitudes, subjective norms (e.g. “interpersonal influence”), and perceived behavioural
control and their intention to purchase e-deals ( Jeffrey and Hodges, 2007; Khare, 2014;
Sorce et al., 2005).
Literature review
A general purpose of studies relevant to e-shopping behaviour is to understand and predict
consumers’ e-shopping behaviour as well as, in some cases, to improve the design of
e-shopping sites. Chang et al. (2005) classified the antecedent factors of e-shopping behaviour
into three categories: perceived characteristics of the web as a sales channel, online Factors
consumer characteristics, and vendor and product characteristics. Among these influencing
characteristics, the former two have been examined extensively in previous research,
confirming their importance in understanding e-shopping behaviour.
consumers’
Consumers with different characteristics may react to e-shopping in different ways. attitudes
For example, those unfamiliar with computers and the internet will not think e-shopping
is an active alternative. In particular, a consumer’s shopping orientations refer to a 765
consumer’s general predispositions towards shopping activities. They are conceptualised
as specific dimensions of lifestyle and operationalized based on activities, interests, and
opinions regarding shopping behaviour (Li et al., 1999). Various studies have explored the
links between consumers’ shopping orientations and their intention (or actual choice) to
shop online.
Perceived value
Perceived value is defined as a “concern for price paid relative to quality received”
(Lichtenstein et al., 1993, p. 235), in particular the greater the perceived value received, the
greater the willingness by the consumer to adopt a new product (McGowan and
Sternquist, 1998). On the other hand, if a consumer does not believe that the product has
any value either as a result of price, quality, emotional, or a feeling of social acceptance
received from obtaining the item (Kitchen et al., 2014; Lee et al., 2005; Sweeney and
Soutar, 2001), the individual would not purchase the product.
Today, more consumers are trying to maximise value for money spent, demanding
better quality at lower prices (Kacen et al., 2012). As a result, perceived value is a decisive
factor influencing consumer attitudes and evaluations towards a product and
subsequently their purchasing decisions. Previous studies have identified various
advantages of e-shopping, in particular effort saving (Cho, 2004; Verhoef and Langerak,
2001), product value in terms of price and quality (Vijayasarathy and Jones, 2000). More
importantly, value-oriented consumers are more susceptible to purchasing discounted
deals or value coupons (Phau and Poon, 2000) as such this buying behaviour is reinforced
based on a positive state of fulfilment (e.g. satisfaction) with substantial savings.
Price consciousness
Price consciousness is “the degree to which a consumer focuses exclusively on paying low
prices” (Lichtenstein et al., 1993, p. 235). Price “sensitive” consumers are buyers who seek
best (lowest) prices and in general avoid buying expensive items. This market segment is
known to be more knowledgeable and “thrifty” in their spending patterns. Therefore,
price-conscious consumers are more likely to purchase online when e-shopping sites offer a
lower price or financial benefits (e.g. Koyuncu and Bhattacharya, 2004; Sim and Koi, 2002).
A feature of daily deal is that they tend to involve heavy discounting, far beyond typical
in-store discounting. Common daily deal discounts are in the 30-50 per cent range or more,
which is beyond the generally accepted range of 10-30 per cent (e.g. Gupta and Cooper,
1992; Harlam et al., 1995; Marshall and Leng, 2002). In this case, e-deals that provide
discounted products and services in huge quantity are attractive to price-conscious buyers
(Kacen et al., 2012). These online savings in the form of an online deal is likely to generate
some type of purchase satisfaction resulting in the likelihood of repeat purchase behaviour
and possibly over time, the compulsive buying of e-deals (Dholakia, 2011; Train, 2003).
Consumer attitudes towards e-deals
Consumers’ relevant social and psychological characteristics are mainly derived from
psychological theories such as TPB, social cognitive theory, and Technology Acceptance
MIP Model. Previous findings are consistent with these theories. Favourable attitudes towards
33,5 e-shopping are positively associated with consumers’ e-shopping intention and actual use
(e.g. Ahn et al., 2004; Kitchen et al., 2014; O’Cass and Fenech, 2002; Ratten and Ratten, 2007).
In addition, favourable attitudes towards the internet (Grazioli and Jarvenpaa, 2000; Sim and
Koi, 2002), towards vendors ( Jarvenpaa et al., 2000; McKnight et al., 2002), towards catalogue
retailing (Cho, 2004), and towards marketing and advertising (Donthu and Garcia, 1999)
766 were also found to positively affect the adoption of e-shopping.
Interpersonal influence
An important determinant of an individual’s behaviour is the influence of others
(Bandura, 1986; Bearden et al., 1989; Khare, 2014; Kitchen et al., 2014). Normative
influence based on the number of product-followers (i.e. potential purchasers) could result
in acting to persuade, convince, or influence others for the purpose of having a specific
effect (Kozinets et al., 2010). The number of previous buyers can serve as a form of “social
validation” (Cialdini, 2007; Granovetter and Soong, 1986) for that brand or product –
more specifically, a large buyer number signals higher product quality and/or greater
deal value (Dean and Lang, 2008; Hellofs and Jacobson, 1999). On the other hand,
information susceptibility is the basis of purchase decision on the expert opinions of
others to make informed choices (Bearden et al., 1989).
The assurance of opinion of others plays an important role as a point of reference
especially when consumers have little knowledge of the product category in question.
If peers or reference group were to have expert knowledge on the differences between
online coupon providers or the buying of e-deals and coupons (such as promotions or
product quality) it will consequently have an effect on consumers’ attitude towards e-deals
and its provider. In a similar manner, it is likely that the number of people who have
already purchased a group buying site deal can impact on consumer’s susceptibility
towards buying of e-deals as a form of “social validation”.
Perceived Value H1
Figure 1.
Perceived Behaviour H5 Conceptual
Control framework
MIP price consciousness (Lichtenstein et al., 1993; Koyuncu and Bhattacharya, 2004), towards
33,5 daily deal web sites, e-deals, and similar online services will play a multifaceted role in
influencing consumer attitude towards e-deals (O’Cass and Fenech, 2002; Ratten and
Ratten, 2007) and subsequently their buying behaviour. As such, the theory formulates
the following hypotheses:
H1. There is a positive relationship between a consumer’s price consciousness and
768 attitudes towards using e-deals.
H2. There is a positive relationship between a consumer’s perceived value and attitudes
towards using e-deals.
Survey instrument
The survey instrument was developed using established scales from previous studies in
the same context of this study. It consists of a six-item scale to measure perceived value
(Sweeney and Soutar, 2001), a five-item scale to measure price consciousness (Alford
and Biswas, 2002), an eight-item to measure normative influence (Bearden et al., 1989),
a four-item to measure informative influence (Bearden et al., 1989), a five-item scale to
measure the effects of perceived behavioural control (Kang et al., 2006), a four-item scale
to measure attitude towards the advertised e-deals (Chen and Lu, 2011), and a five-item
scale to measure intention to buy e-deals (Chen and Lu, 2011) (refer to Appendix).
In addition, two print advertisements featuring e-deals in the food category were selected
as stimuli to determine the attitude and purchase intention. A section for demographic
profiles will be included in the last section. All items, excluding attitudes and intention
scales, were measured with a seven-point Likert scale with 1 representing “strongly
disagree” and 7 representing “strongly agree”.
Sample
A total of 780 self-administered questionnaires were distributed to voluntary participants
in universities. Questionnaires with missing data or insufficient responses to particular
sections were eliminated and not used for statistical analysis purposes. As a result, a total
of 611 questionnaires were useable and valid for analysis. Based on the filter questions,
there are 426 e-deals users and 185 e-deals non-users from overall valid data. Data from
426 e-deals users will be used for validity reasoning in this study. The details of the
demographic profiles are shown in Table I. Slightly over 50 per cent of the respondents
were females. Most of the e-deals users were in the “age range 18-25” (60.6 per cent).
Data analysis
Exploratory factor analysis and reliability checks
An exploratory factor analysis was conducted on each scale in the study to ensure the
unidimensionality of the scales, followed by a reliability check. Based on exploratory
factor analysis results, one item from perceived behavioural control scale and one item
from perceived value scale are removed because the factor loading scores are less than
0.40 (refer to Table II). As shown in Table III, all scales exhibit a high degree of reliability
with Cronbach’s α above 0.80 (Nunnally, 1978).
each scale. The results of CFA estimation has shown that all items are loaded significantly
( po0.001) on each factor with adequate factor loadings to prove discriminant validity.
All direct effect estimates are positive and most squared multiple correlations are at least
0.30. RMSEA, GFI, and AGFI will be used to indicate a good model fit for each congeneric
model in CFA testing. These measurement model results also establish divergent validity
of the underlying constructs and establish an essential pre-condition for the validity of
subsequent structural model estimation.
SEM
As suggested by Kline (2005), SEM was conducted to test the conceptual model fit.
Following its conceptual model, the initial full structural model (refer to Figure 2) is
considered not a good model fit based on its fit indicators ( χ2 (570) ¼ 1,771.507,
χ2/df ¼ 3.108, p ¼ 0.000, RMSEA ¼ 0.070, GFI ¼ 0.801, AGFI ¼ 0.767, and CFI ¼ 0.901).
There is a need to amend the model to achieve model fit. First step is to check the
significance of regression weight for each path analysis in the model. Path analysis between
informational influence and intention to purchase e-deals ( p-value ¼ 0.382W0.05) and path
analysis between price consciousness and attitudes towards e-deals ( p-value ¼ 0.113W0.05)
are removed because it shows no significant relationship on both path analysis according
to p-values. Next step is to examine that there is no strong correlation between two
variables (dependent and independent variables) based on modification indices. The strong
correlation between two variables can be interpreted as both variables have similar
measurement, hence, one of the variables need to be omitted from the model. Based on
the results of modification indices, perceived behavioural control variable is removed from
the model because it has strong correlation with perceived value variable and normative
influence variable. In addition, some of the observed variables are removed because it has
strong correlation with other variables. Therefore, three observed variables from normative
influence, one observed variable from perceived value, one observed variable from attitudes
Factors
Factors
Items Norm Intent Attitude PriCon Info ValCon PBC influencing
consumers’
Normative4 0.914
Normative5 0.884
attitudes
Normative6 0.879
Normative3 0.878 771
Normative2 0.865
Normative7 0.851
Normative8 0.845
Normative1 0.803
Intention4 0.858
Intention5 0.836
Intention2 0.832
Intention1 0.830
Intention3 0.814
Attitude2 0.822
Attitude4 0.809
Attitude3 0.807
Attitude1 0.807
PriceConscious3 0.878
PriceConscious2 0.878
PriceConscious4 0.855
PriceConscious5 0.804
PriceConscious1 0.681
Informational3 0.903
Informational2 0.884
Informational4 0.864
Informational1 0.524
PerceivedValue2 0.849
PerceivedValue4 0.837
PerceivedValue1 0.825
PerceivedValue3 0.809
PerceivedValue5 0.758
PerceivedValue6 0.233
PerceivedBehaviorControl2 0.840
PerceivedBehaviorControl3 0.832
PerceivedBehaviorControl4 0.829
PerceivedBehaviorControl1 0.589 Table II.
PerceivedBehaviorControl5 0.359 Exploratory factor
Eigenvalues (% of variance) 34.326 11.088 10.015 9.145 5.700 4.969 3.827 analysis results for
KMO 0.922 each variable (direct
Bartlett Approx. χ2 ¼ 12,424.627; df ¼ 666; Sig. ¼ 0.000 oblimin rotation)
772 e1
0.67
ValCon1 0.82
0.19
Attitude e37
0.40
e10 PriceCon5 0.63
0.55 0.49 0.09
e9 PriceCon4 0.70
0.83
0.91
–0.48 e8 PriceCon3 PriceCons 0.67 0.80
e16 Norm2
0.19 0.60
0.12
e15 Norm1
0.67
e26 Info4 0.82
0.88
0.94
e25 Info3
0.74
0.86
0.27 e29 PBC3 PBC
0.55 0.74
e28 PBC2
0.24
Initial full
structural model Notes: CFA Reactive 2 = 1,771.507; df = 570; CMIN/DF=3.108; p =0.000; rmsea = 0.070;
PCLOSE = 0.000; rmr = 0.628; CFI = 0.901; AGFI = 0.767; GFI = 0.801
towards e-deals, and two observed variable from intention to purchase e-deals are removed.
After a number of iterations of the structural model were engaged, the conceptual model
(refer to Figure 3) can be consideredas a good model fit ( χ2 (86) ¼ 164.485, p ¼ 0.000, CMIN/
df ¼ 1.913), other indicators such as RMSEA ¼ 0.046, PCLOSE ¼ 0.702, GFI ¼ 0.984,
AGFI ¼ 0.934, and CFI ¼ 0.953 are within the recommended fit level (Hu and Bentler, 1999).
acceptable
0.52
e11 e12 e13 Factors
e4 0.72
quality
0.84 0.85 0.75
influencing
0.67
0.82 good favourable positive consumers’
e3 economical
Perceived
attitudes
0.78 0.88 Value 0.92 0.92 0.87
e2 fair price
0.67
0.82 0.47
0.22
773
Attitudes
e1 good value towards e37
edeals
0.64
buy before
0.80 e33
0.73 expire
0.64
0.79
0.89
sense of 0.89
e20 belonging 0.78
0.18 e38
buy if see it e35
0.80
good 0.89
e19 Normative
impression
Influence
0.78 0.88
others’
e18
expectation
0.31
0.64
Based on SEM results, H1 and H3 are accepted and H4 is partially accepted. Conversely, H2
and H5 are rejected.
Discussion
The results generated for H1, revealed a significant factor coefficient value of 0.47 for this
structural pathway. In addition, results suggested that consumer’s perceived value of
e-deals that are characterised as “fair priced” (0.78), “economical” (0.67), and of “good value”
(0.67) outweigh that of “acceptable quality” (0.52). This set of findings mirrors that of past
research in Cho (2004), Verhoef and Langerak (2001), and Vijayasarathy and Jones (2000).
H2 suggests that price consciousness positively influences upon attitudes towards
e-deals. The results did not support this hypothesis. It explains that price-conscious
consumers are not necessarily having favourable attitudes towards e-deals, even though it is
cheaper. This is largely attributed to their willingness to pursue heavily discounted
e-deals regardless of the amount of extra effort required. As per the social cognitive theory,
“learning through observation” is an essential element that influences individual decision
making and further assist individuals to learn and acquire new knowledge or experience
simultaneously (Bandura, 1977; Pincus, 2004). These “bargain hunters” and similar types of
MIP consumers are more likely to perceive (and believe) that these online e-deals and bargain
33,5 vouchers will provide a better or the “best price” in comparison to the existing market
price(s). Furthermore, given the findings it is presumable that Australian consumers are
more likely to be driven by “value” (e.g. e-deals that are economical and have consistent and
acceptable quality) rather than “price” (e.g. e-deals that are heavily discounted) in their
pursuit for online bargains and e-deals. This result contradicts the findings from past
774 research (Sim and Koi, 2002; Koyuncu and Bhattacharya, 2004; Kacen et al., 2012).
Attitudes towards e-deals was hypothesised to have a positive influence upon intention
to buy e-deals and it is supported with a high coefficient value ( β ¼ 0.73) that indicates
a strong relationship. According to the SEM results, “good” (0.84), “favourable” (0.85), and
“positive” (0.75) are the elements of positive feelings that represent individuals’ attitudes
towards e-deals that lead to higher intention to buy e-deals. This finding suggests that it is
important to accentuate what consumers want to observe in the advertisement to enhance
their positive attitudes towards e-deals to increase the chance for them to buy the e-deals.
The result from H3 reflects the concept of TPB model (Ajzen, 1985, 1991), where attitude is
a strong predictor of intention. This outcome also has strengthened the indications from
past research (Ahn et al., 2004; O’Cass and Fenech, 2002).
H4, which states that interpersonal influence has a positive influence on intention to buy
e-deals, is only partially supported. The normative influence dimension is significant but
not for the informative influence dimension. This outcome indicates that individuals, who
are more likely to buy e-deals, are affected by normative influence benefactors, such as
“identify with others” (0.64), “sense of belonging” (0.79), “good impression” (0.80), “others”
expectation” (0.78), and “others” liking (0.64). Even though there is a correlation (r ¼ 0.31)
between “others” expectation” and “others” liking”, both benefactors are essential because
it measures different contexts from others’ point of view about e-deals. Therefore, these
findings suggest that expert opinion from friends, family, or colleagues does not have
significant impact to enhance consumers’ intention to buy e-deals. Conversely, persuasion
or influence from others as a form of “social validation” (Cialdini, 2007; Granovetter and
Soong, 1986) will affect the consumers to buy e-deals because consumer can identify
themselves with others as a sense of belonging. In addition, consumers want to get an
approval of their buying decision from others.
H5 suggests that perceived behavioural control has a positive influence upon intention
to buy e-deals. Even though the probability of regression weight is less than 0.05 ( p ¼ 0.03),
all its independent variables have strong correlations towards other variables that has huge
impact to the model fit. Hence, perceived behavioural control needs to be omitted from the
structural model. The TPB’s “perceived behavioural control” element and concept of self-
efficacy beliefs states that unless the individual believes that his or her actions will have the
desired consequences, they will have little incentive or motivation to engage in those actions
(Fishbein and Ajzen, 1975; Ajzen and Fishbein, 1980; Fortin, 2000; Ahn et al., 2004). In this
case, unless consumers believe that they possess the necessary computer literacy skills to
engage in purchasing e-deals, they will be unlikely to engage in such buying behaviour.
From this finding, it is clear that ease of navigation as a part of perceived behavioural
control does not have a significant effect towards consumers’ intention to buy e-deals. This
outcome also contradicts the findings from past research (Childers et al., 2001; Yoon, 2002).
Concluding comments
Conceptual implications
The research contributes substantively by depicting the specific theoretical meaning and
role that each studied construct plays. The present research was derived from various
research gaps found in the online buying and “shopping” behaviour marketing literature. Factors
Unsurprisingly, given the relative newness of the phenomenon, there is little empirical influencing
study of daily deal web sites and its offerings. Despite the continuous effort to build on the
literature, researchers have little theoretical knowledge as to when, what, why, and how
consumers’
these various socio-psychological factors have their influences on our buying behaviour in attitudes
an online marketplace, and more specifically in the context of evaluating and purchasing
e-deals. Therefore, this study is expanding the current online shopping literature by 775
investigating the concept of “e-deals” which is “an online deal which offers deep discounts
for the product or service being offered”.
In adopting the TPB model, the study proposed and examined its research model based
on a theoretically driven conceptual framework. This study incorporated other relevant
theories such as the social cognitive theory and the theory of reasoned action in relating and
justifying the effects of social and psychological variables and “semantic cues” as an
examination of how consumers would evaluate or decide on purchasing a product or service
from a daily deal web site. These socio-psychological antecedents such as a consumer’s
perceived value, their level of price consciousness, their susceptibility towards interpersonal
influence, and the self-efficacy concept and beliefs to the online business environment or the
“daily deal space” were drawn to provide the foundation in the investigation of consumers’
attitudes and their willingness to purchase e-deals.
Managerial implications
This is one of the pioneering studies in defining and examining the nature of
e-shoppers and their purchase behaviour of e-deals in the Australian context.
This research and its theoretical basis hold valuable implications for the growing
literature on attitude formation and online consumers purchase behaviour
tendencies, which is an important individual-level construct to better understand
e-marketing dynamics.
This study showcases three main findings. First, consumer attitude towards e-deals
shows a positive relationship with consumer’s perceived value, but not with price
consciousness tendencies. The findings reiterate that if a consumer sees the worth of using
an electronic deal or redeeming an e-coupon for a product or service (i.e. the perceived
value), then their awareness levels in terms of the prospective vendor sites and types of
e-deals would increase as well as their frequency in visiting these daily deal web sites
which, in turn would, potentially, promote a favourable attitude towards using e-deals
(Cho, 2004; Verhoef and Langerak, 2001; Vijayasarathy and Jones, 2000). Moreover, given
that the study examines a category of product (i.e. food) that is generally low cost and is
frequently purchased, there is evidence to support its constant purchase pattern over the
internet (Phau and Poon, 2000).
On the other hand, there is a distinct difference between the predictive factors of
“value” and “price”. Put simply, searching for a “cheap or discounted” product or service
online vs one that is “value for money” is two entirely different behavioural intentions.
Consumers who are characterised as “price conscious” are likely to be sceptical of such
online deals and more risk averse to sample similar online discount schemes and
initiatives (e.g. Sim and Koi, 2002; McKnight et al., 2002). The findings suggest that
price-conscious consumers are in fact unlikely to display any signs of favourable attitude
towards using e-deals. Therefore, it is crucial for both marketing practitioners in particular
e-vendors to make more informed decisions especially in terms of “targeting strategies” of
how e-deals and similar online product and service offerings should be communicated
differently to new customers and existing ones.
MIP Promotional strategies should be set up in a way that disseminate positive word of
33,5 mouth and information to raise consumer’s awareness about the “perceived value” in
using e-deals either through online communication initiatives such as social media
(Facebook, twitter), the online communities of bloggers, or via database marketing,
in order for consumers to form more favourable opinions of the e-deals from online
vendors, in specific product or service categories (i.e. beauty vs travel). However, it is
776 important to note that the more price conscious a consumer is about e-deals and
e-shopping in general, does not necessarily mean that they would use e-deals to make a
purchase. In this case, e-providers should consider setting up strategies that will avoid or
at least limit proven buyers (i.e. buyers who would likely buy a given item even without
that 50 per cent discount), instead advertised (or target) these e-deals in such a way that
only new buyers can find them. For example, this could mean offering a discount on a
very specific, niche product, this way; the buyers using the e-deals will likely be
customers with a legitimate interest in the item, not just all-consuming bargain hunters.
Second, the study results show that consumer susceptibility to interpersonal influence
and intention to purchase e-deals is significant and positive. This indicates that
interpersonal influence by peers and norms (i.e. one’s social network) will positively
influence consumer’s intention to purchase e-deals which, in turn, has a positive effect on
the actual choice of e-shopping. Furthermore, this finding mirrors past studies such as
Choi and Geistfeld (2004), Limayem et al. (2000), and Blake et al. (2003). From a managerial
perspective, this finding may create possible opportunities and additional challenges for
e-providers in particular group buying sites with regards to cultivating this type of
positive social validation amongst new and existing buyers and groups. Therefore,
e-providers should consider appointing a “leader” or “trend setter” within the online social
communities in order to create exposure for their business as well as to influence new and
potential consumers to purchase e-deals. For example, utilising a variety of popular
YouTube personalities such as “Ryan Higa”, “Kevjumba”, or “Jenna Marbles” can be a
good starting point in raising the business profile.
With regards to consumer’s perceived behavioural control in using e-deals and
intention to purchase e-deals, the inverse findings deviates from studies such as Limayem
et al. (2000), Shim et al. (2001), and Kang et al. (2006). This means that consumers’ attitude
(and or ability) towards internet searching (or site navigation) will not have a significant
effect on their purchase intention of e-deals. However, it is arguable that “internet
searching” is but one of the multiple components in a consumer’s ability to perform the
necessary behaviour of purchasing e-deals. For instance, other factors such as consumers’
computer skills and facilities, web site quality in terms of security, download delay, and
visual appeal could also hinder the consumer’s “ease of navigation” (e.g. Ahn et al., 2004;
Eroglu et al., 2001). Nonetheless, marketers should try to educate consumers with related
skills to search for tailored e-deals on the one hand, while at the same time, marketers
should do their best to make e-deals and e-coupon redemption easier (Chen and Lu, 2011).
For example, detail instructions of a simple redemption procedure are necessary
to facilitate those consumers who have favourable attitudes towards using e-deals.
Third, the relationship between consumer’s attitude towards using – and their purchase
intentions of e-deals is significant and positive, indicating that consumers with favourable
attitude towards using e-deals are more willing to buy e-deals. This echoes previous results
in other studies such as Chen and Lu (2011), Ahn et al. (2004), and O’Cass and Fenech (2002).
Underpinned by the TPB, the above finding can help formulate effective communication
initiatives and appeals leading to other increasing e-marketing opportunities. There are
some recommendations for new advertising and branding strategies for online retailers who
wish to remain competitive in their current marketplace. It is imperative that businesses Factors
who wish to engage with online group buying sites and e-providers consistently refine their influencing
marketing strategies in order to maintain (or increase) the degree of differentiation and
chances for continued success in this competitive market. This may include research
consumers’
activities such as evaluating online trends, examining buyer behaviour, and even crafting attitudes
new products or services based on the tried and true, and fresh and new ideas. For example,
it is essential for practitioners to create user-friendly applications to assist with purchasing e- 777
deals such as “one-click buy” application can enhance consumers’ attitudes towards e-deals
and will lead them to purchase e-deals easily.
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Further reading
Chen, L.D., Gillenson, M.L. and Sherrell, D.L. (2002), “Enticing online consumers: an extended
technology acceptance perspective”, Information and Management, Vol. 39 No. 6, pp. 705-719.
Holmes-Smith, P. and Coote, L. (2002), Structural Equation Modelling: From the Fundamentals to
Advanced Topics, School Research Evaluation and Measurement Services, Elsternwick.
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Corresponding author
Professor Ian Phau can be contacted at: ian.phau@cbs.curtin.edu.au
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