A study on information disclosure, trust, reducing search cost, and online group-buying intention

Purpose More and more disputes have quickly emerged and accumulated, hence generating uncertainties and doubts among consumers regarding the online group-buying. In order to decrease such uncertainties, the purpose of this paper is to explore the relationships among information disclosure, trust, reducing search cost, and online group-buying intention, as well as proposing concrete suggestions for enhancing online group-buying intention. Design/methodology/approach In order to explore the relationships among information disclosure, trust, reducing search cost, and online group-buying intention, the questionnaire and statistical analytical techniques were used. Moreover, as this study was an early attempt to develop a model for information disclosure, trust, reducing search cost, and online group-buying intention, partial least square therefore was appropriately to analyze data. Findings The results showed that the level of information disclosure and trust on a group-buying website have positive influence on reducing search costs, while reducing search costs and trust have positive influences on online group-buying intention. Research limitations/implications This research applied a purposive sampling method and obtained a slightly inadequate number of respondents. Therefore, it is suggested that future research should apply a random sampling method to collect more responses and increase the generalizability of the findings. Practical implications By more actively disclosing information it is possible for group-buying websites to increase consumer trust and decrease search costs, thus enhancing their group-buying intentions. Originality/value There are few studies on the relationships among reducing search cost, trust, and group-buying intention from the perspective of information disclosure. This study thus applies a questionnaire survey method to explore the relationships among them. This study also offers concrete suggestions to enhance group-buying intentions, and provides marketing strategies that can be used by online group-buying websites to raise their sales.

[1]  Chun-Ming Chang,et al.  Understanding the determinants of online repeat purchase intention and moderating role of habit: The case of online group-buying in Taiwan , 2015, Int. J. Inf. Manag..

[2]  Wynne W. Chin.  The partial least squares approach for structural equation modeling. , 1998 .

[3]  Detmar W. Straub,et al.  Trust and TAM in Online Shopping: An Integrated Model , 2003, MIS Q..

[4]  Matti Rossi,et al.  Mobile Games: Analyzing the Needs and Values of the Consumers , 2010 .

[5]  D. Gefen,et al.  E-commerce: the role of familiarity and trust , 2000 .

[6]  Paul A. Pavlou,et al.  Building Effective Online Marketplaces with Institution-Based Trust , 2004, Inf. Syst. Res..

[7]  Carl J. Dahlman.  The Problem of Externality , 1979, The Journal of Law and Economics.

[8]  James A. Narus,et al.  A Model of Distributor Firm and Manufacturer Firm Working Partnerships , 1990 .

[9]  Thompson S. H. Teo,et al.  Online buying behavior:a transaction cost economics perspective , 2005 .

[10]  J. Baker,et al.  The effects of appropriateness of service contact personnel dress on customer expectations of service quality and purchase intention: The moderating influences of involvement and gender , 2004 .

[11]  L. Hosmer.  TRUST: THE CONNECTING LINK BETWEEN ORGANIZATIONAL THEORY AND PHILOSOPHICAL ETHICS , 1995 .

[12]  D. Midgley.  Patterns of Interpersonal Information Seeking for the Purchase of a Symbolic Product , 1983 .

[13]  Shih-Wei Huang,et al.  Exploring antecedents and consequence of online group-buying intention: An extended perspective on theory of planned behavior , 2013, Int. J. Inf. Manag..

[14]  Wynne W. Chin.  Issues and Opinion on Structural Equation Modeling by , 2009 .

[15]  R. Daft,et al.  Information Richness. A New Approach to Managerial Behavior and Organization Design , 1983 .

[16]  Chun-Ming Chang,et al.  Determinants of repurchase intention in online group-buying: The perspectives of DeLone & McLean IS success model and trust , 2014, Comput. Hum. Behav..

[17]  Hean Tat Keh,et al.  Corporate reputation and customer behavioral intentions: The roles of trust, identification and commitment ☆ , 2009 .

[18]  Diego Gambetta.  Trust : making and breaking cooperative relations , 1992 .

[19]  I. Ajzen,et al.  Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research , 1977 .

[20]  Paul A. Pavlou,et al.  Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model , 2003, Int. J. Electron. Commer..

[21]  Jack P. Friedman,et al.  Dictionary of Real Estate Terms , 1984 .

[22]  Alexander Joslin,et al.  An investigation into the expression of uncertainty in property valuations , 2005 .

[23]  F. Reichheld,et al.  E-LOYALTY: YOUR SECRET WEAPON ON THE WEB , 2003 .

[24]  Ming-Tien Tsai,et al.  Understanding online group buying intention: the roles of sense of virtual community and technology acceptance factors , 2011 .

[25]  John G. Lynch,et al.  Wine Online: Search Costs Affect Competition on Price, Quality, and Distribution , 2000 .

[26]  Shuping Chen,et al.  Voluntary Disclosure of Balance Sheet Information in Quarterly Earnings Announcements , 2001 .

[27]  Bin Wang,et al.  New buyers' arrival under dynamic pricing market microstructure: the case of group-buying discounts on the Internet , 2001, Proceedings of the 34th Annual Hawaii International Conference on System Sciences.

[28]  Pertti Hurme,et al.  MOBILE COMMUNICATION AND WORK PRACTICES IN KNOWLEDGE-BASED ORGANIZATIONS , 2005 .

[29]  Manfred F. Maute,et al.  The effect of attribute qualities on consumer decision making: a causal model of external information search , 1991 .

[30]  A. Woodside,et al.  Building and testing theories of decision making by travellers , 2005 .

[31]  Joseph P. Cannon,et al.  An Examination of the Nature of Trust in Buyer–Seller Relationships: , 1997 .

[32]  D. Nanda,et al.  Accounting Information , Disclosure , and the Cost of Capital , 2007 .

[33]  B. Ratchford,et al.  An Empirical Test of a Model of External Search for Automobiles , 1991 .

[34]  Sung-joon Yoon,et al.  The antecedents and consequences of trust in online-purchase decisions , 2002 .

[35]  George A. Akerlof.  The Market for “Lemons”: Quality Uncertainty and the Market Mechanism , 1970 .

[36]  Yung-Ming Li,et al.  A social recommender mechanism for location-based group commerce , 2014, Inf. Sci..

[37]  William B. Dodds,et al.  Effects of Price, Brand, and Store Information on Buyers’ Product Evaluations , 1991 .

[38]  Dongyu Chen,et al.  The Study of Consumer Trust in C2C e-Commerce Based on Reputation Score, Information Disclosure, Online Consumer Review Quality , 2010, 2010 International Conference on Management of e-Commerce and e-Government.

[39]  M. R. Solomon.  Consumer Behavior: Buying, Having, and Being , 1993 .

[40]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[41]  Ahmet Can Kutlu,et al.  Outsourcing Contracting Strategies from Supplier's Side: A Real Options Approach Based on Transaction Costs , 2012 .

[42]  Ting-Peng Liang,et al.  An empirical study on consumer acceptance of products in electronic markets: a transaction cost model , 1998, Decis. Support Syst..

[43]  Weng Marc Lim,et al.  Consumer Acceptance and Continuance of Online Group Buying , 2014, J. Comput. Inf. Syst..

[44]  Jennifer Francis,et al.  Voluntary Disclosure, Earnings Quality, and Cost of Capital , 2008 .

[45]  Naser Abdelkarim,et al.  Investor Perception of Information Disclosed in Financial Reports of Palestine Securities Exchange Listed Companies , 2009 .

[46]  Prashant Palvia,et al.  The role of trust in e-commerce relational exchange: A unified model , 2009, Inf. Manag..

[47]  Nils Urbach,et al.  Structural Equation Modeling in Information Systems Research Using Partial Least Squares , 2010 .

[48]  Jagdip Singh,et al.  Agency and trust mechanisms in consumer satisfaction and loyalty judgments , 2000 .

[49]  Yehoshua Liebermann,et al.  Message strategy by product-class type: A matching model , 1996 .

[50]  G. Haines,et al.  The Theory of Buyer Behavior. , 1970 .