1. 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

2. Contents
Introduction
Literature Review
Methodology

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

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

5. 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)

6. 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)

7. 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.

8. 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.

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

10. 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?

11. 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

12. 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)

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

14. 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)

15. 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)

16. 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)

17. 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

18. 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)

19. Methodology Research Framework Research Hypotheses Data collection
Instrument
Data Analysis

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

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

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

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

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

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

26. Thanks for your attention