Factors affecting satisfaction and loyalty to online group buying

Abstract

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.

The impact of online shopping attributes on customer satisfaction and loyalty: Moderating effects of e-commerce experience

“…As confirmed in the literature, this is influenced by satisfaction and various quality factors (Brusch et al, 2019). Studies continue to examine the impact of various factors on e-commerce satisfaction and loyalty (Al-dweeri et al, 2019;Faraoni et al, 2018;Garcia et al, 2020). Recent studies suggest that, when a website design can save shoppers time, makes it easy to use, offers information about product variety, and delivers items quickly, customers can become highly satisfied (Brusch et al, 2019;Raman, 2019).…”

“…As payments are processed through a debit or credit card in online shopping, consumers also give attention to information about the e-retailer as a source of protection (Vasic et al 2018). Dimensions such as fulfilment, ease of use, reliability, security, and privacy are important for websites that market products that need physical delivery (Yang et al, 2005), and customers' demand for delivery deadlines, security, and reliable e-commerce services is very high (Garcia et al, 2020). Shih (2004) reports a significant and positive impact of website security on users' acceptance of taking online delivery.…”

“…Managers who understand the factors driving customers' satisfaction and their choice of online store help their businesses to benchmark and guide future improvements (Vasic et al 2018). Online marketing research postulates that consumers shop online for benefits, including the variety of products and the assurance of reliable delivery options (Torkzadeh & Dhillon, 2002;Xiao et al, 2018), which contribute significantly to greater website satisfaction (Alavi et al, 2016;Ladeira et al, 2016;Tzeng et al, 2020), better attitudes toward online shopping (Park et al, 2015), and greater online store loyalty (Garcia et al, 2020;Pandey & Chawla, 2018;Pandey et al, 2019).…”

The Effect of E-Service Quality and Perceived Price Fairness on Customer Loyalty Which Customer Satisfaction as Intervening Study on Online Shopping Site in Indonesia

“…Besides that, Lazada can pay attention to the pricing provided by each seller. Then further research is suggested to be able to use other variables that can affect customer loyalty, such as Trust Garcia et al (2020) or social media marketing activities Yadav and Rahman (2018). In other words, Lazada's online site is expected to pay attention to factors that can increase its customer loyalty.…”

Fidelização de consumidoras no varejo de roupas e calçados femininos a partir da satisfação com atributos qualitativos

“…Retail loyalty requires the intention of repurchase, obtaining satisfaction as a result. The repurchase or future preference is the need to purchase a product/service again (Garcia, Freire, Santos, & Andrade, 2020).…”