1. The impact of online group-buying to relationship quality: FAIRSERV as a moderating variable Advisor: Kate Chen Presenter: Erin Hsu Date: June 2, 2010 1

2. Contents 2 Introduction 1 Literature review 2 Methodology 3

3. Introduction  Research Background  Research Motivation  Statement of Problem  Research Purpose  Research Questions 3

4. Research Background Buyers and sellers can retrieve benefits through online group- buying for the reason that the result reduces transaction costs. (Lai, 2002) In the part of FAIRSERV, when service providers are delivering services, consumers are both interested in service quality and fairness. (Carr, 2007) Relationship quality was the degree of appropriateness of a relationship to fulfill the needs, is applied to examine the strength of perceptions of online group-buying. 4

5. Research Motivation The motivation of this research is exploring the relationship of online group-buying to relationship quality through the characteristic of fair service. 5

6. Statement of Problem In the past years, majority of online group-buying researches focused on product price. Previous researchers seldom investigated the relationship quality of online group-buying from consumers’ perceptions. 6

7. Research Purpose - to explore that the perceptions of online group-buying would influence the relationship quality based on the viewpoint of fair service 7

8. Research Questions 8 1. What is the relationship between perceptions of online group- buying and relationship quality? 2. Would the fair service affect the perceptions of online group- buying and relationship quality directly or indirectly?

9. Literature Review  Online Group-Buying  FAIRSERVE  Relationship Quality 9

10. Online Group-Buying Definition of Online Group-Buying Online Group-Buying Model Operation of the Group Buying Model Typologies of Group Buying 10

11. Definition of Online Group-Buying Online group-buying uses of websites or online platforms to get discounts and occurs when online groups of consumers unite to buy particular goods when manufacturers have offered wholesale prices to consumers. (Gottlieb, 2000) 11

12. Online Group-Buying Model Vakrat and Seidmann (2000) noticed that the number of bidders—or bid density—in an auction is closely related to a number of factors, which included the duration of the auction, the minimum bid increment required, the quantity of items available, and the average closing price. 12

13. Operation of the Group Buying Model 13 Participation Externality Effect Price Drop Effect Price-Level Effect Cycle-Ending Effect

14. Typologies of Group Buying Tsvetovat, Sycara, Chen, and Ying (2000) classified group buying into two categories, with five stages which are negotiation, coalition formation, leader election/voting, payment collection, and execution/distribution. The two categories are pre-negotiation and post- negotiation. 14

15. FAIRSERVE Carr (2007) pointed out that when service providers are delivering services, consumers are not only interested in service quality, but also service fairness. 15

16. FAIRSERVE Equity Theory The Structure of Fairness Dimension of Fairness 16

17. Equity Theory “Individuals are motivated by comparing the ratio of their inputs to their outcomes with the same ratio of others.” (Adams, 1963, p.424) 17

18. The Structure of Fairness 18 Interpersonal Procedural Informational Distributive Fairness

19. Relationship Quality The Definition of Relationship Quality Trust Satisfaction Commitment 19

20. The Definition of Relationship Quality Henning-Thurau and Klee (1997, p.738) defined relationship quality between customers and companies as the “degree of appropriateness of a relationship to fulfill the needs of the customer associated with the relationship.” 20

21. 21 Trust Trust Satisfaction Satisfaction Commitment Commitment

22. Trust Kristof, Gaby, and Dawn (2001) defined trust as a customer’s confidence in a retailer’s reliability and integrity. 22

23. Satisfaction Kristof et al. (2001) defined satisfaction as a customers’ affective state resulting from an overall appraisal of the customers’ relationship with a retailer. 23

24. Commitment Commitment is defined as a consumer’s enduring desire to continue a relationship with a retailer accompanied by the consumer’s willingness to make efforts to maintain it. (Kristof et al., 2001) 24

25. Methodology  Research Framework  Research Hypotheses  Research Method  Research Instrument  Research Procedure  Data Collection and Analysis 25

26. Research Framework 26 Perceptions of online group-buying Relationship qualityFAIRSERV H1 H2

27. Research Hypotheses 27 H1: The positively stronger perceptions of the online group-buying, the better the relationship quality is. H2: The degrees of FAIRSERV would influence the relationship quality to the online group-buying.

28. Research Method 28 Participants The undergraduates and graduates of Chaoyang University of Technology Quantity Pilot study: 60 Formal study: 300 PeriodOne month

29. Research Instrument - Questionnaire Part 1 Part 2 Part 3 Part 4 Online Group-Buying FAIRSERV Relationship Quality Demographic Data 29

30. Research Instrument 30 Strongly disagreeStrongly agree the 5-point Likert’s Scale 12345

31. Research Procedure 31 To conduct pilot study To design questionnaire To modify questionnaire To conduct formal test To collect and analyze data

32. Data Collection and Analysis 32 SPSS version 17.0 for windows Descriptive statistic analysis to analysis mean and standard deviation for understanding difference of strength degrees Reliability analysis to measure consistency and stability aiming at every item of each variable Validity analysis to measure how accurate every item could represent each variable Exploratory Factor Analysis to examine the pattern between variables

33. Thanks for your attention! 33