An Empirical Study on Purchasing Intention of Online Group-buying in China

In recent years, the development of electronic commerce has led to the creation of many new and interesting business models for internet-based buying, and online group-buying has become an effective form of it. Online group-buying is a model in which consumers collaborate and purchase a good at a discounted price. Many online group-buying websites are focusing on social service products which have great potential space for a bigger discount. Customers use "online shopping, offline consuming" as a way to consume, which has different perceived risks along with the change of business model. The purpose of this study is to examine the effect of reputation, price and service on purchasing intention through mediator which is perceived risk. To empirically test the proposed model, a survey was conducted and 140 samples were collected. The result of this study shows price has a significant effect on purchasing intention through perceived risk. This result also shows service and reputation have an insignificant relationship with perceived risk. Therefore, online group-buying retailers should not only focus on making money from the business but also consider how to keep consumers for future business.