EXAMINING THE DYNAMICS OF ONLINE GROUP BUYING INTENTION AND SATISFACTION: A SOCIAL EXCHANGE THEORY PERSPECTIVE

Abstract

This paper surveys the literature on online group buying behaviour from a Social Exchange Theory lens. It examines the factors influencing online group buying intentions and consumer satisfaction levels. Specifically, factors such as trust, perceived risk, social interaction, and cost-benefit analysis will be explored. The results were derived from an online survey that was administered to 382 actual participants. The research model is evaluated through the use of PLS analysis. Collectively, the results demonstrate that creativity, trust, reputation, and reciprocity are predictors of the intention to participate in online group purchasing. Most importantly, the aforementioned dynamics, through satisfaction, are able to forecast whether or not consumers will be satisfied with online group buying. The results suggest that online group buying is driven by goal-oriented, reciprocal transactions and embedded in long-term relationships. With a better understanding of how these factors affect consumer behaviour, businesses can better tailor their strategies to capitalise on the opportunities of online group buying.