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An equity theory perspective of online group buying

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  • Lim, Weng Marc

Abstract

This article presents a purchase equity model for online group buying (OGB) to examine the antecedents and consequences of OGB behavior. The study tests 458 usable responses collected by means of mall-intercept systematic sampling from consumers who had previously participated in OGB against the purchase equity model using structural equation modeling. Drawing from both input constructs (perceived sacrifice and perceived risk) and output constructs (perceived benefit and perceived quality) for equity, the findings support the purchase equity model. The findings show the significance of perceived sacrifice, perceived risk, perceived benefit, and perceived quality on consumer perceptual evaluations of purchase equity in OGB. The results suggest that OGB marketers and site operators should focus on promoting perceived benefits (value for money, good selection of products and services, convenience) and perceived quality (ease of use, aesthetics, prompt processing speed) and implementing measures that reduce consumers’ perceived sacrifice (monetary, time, effort) and perceived risk (security, privacy, purchase redemption, purchase delivery) in OGB.

Suggested Citation

  • Lim, Weng Marc, 2020. "An equity theory perspective of online group buying," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:joreco:v:54:y:2020:i:c:s0969698918304144
    DOI: 10.1016/j.jretconser.2018.12.013
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    Cited by:

    1. Lim, Weng Marc, 2020. "The sharing economy: A marketing perspective," Australasian marketing journal, Elsevier, vol. 28(3), pages 4-13.
    2. Lim, Weng Marc & Ahmed, Pervaiz Khalid & Ali, Md Yunus, 2022. "Giving electronic word of mouth (eWOM) as a prepurchase behavior: The case of online group buying," Journal of Business Research, Elsevier, vol. 146(C), pages 582-604.

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