Factors influencing the effectiveness of online group buying in the restaurant industry |
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| Institution: | 1. School of Management, Harbin Institute of Technology, China;2. School of Business, Sun Yat-sen University, China;3. School of Hotel and Tourism Management, Hong Kong Polytechnic University, Hong Kong;4. Department of Chinese and Bilingual Studies, Hong Kong Polytechnic University, Hong Kong;1. Daniels College of Business, University of Denver, 2044 E Evans Avenue, Suite 331, Denver, CO 80208, USA;2. School of Management, Harbin Institute of Technology, 92 West Dazhi Street, Harbin 150001, China;1. School of Economics and Management, Tongji University, Shanghai, China;2. Division of Production Economics, Department of Management and Engineering, SE58183, Linköping, Linköping University, Sweden;3. Business School, University of Shanghai for Science and Technology, Shanghai, China;1. School of Management, University of Science and Technology of China, Hefei, China;2. School of Business, East China University of Science and Technology, Shanghai, China; Research Center for Virtual Business, East China University of Science and Technology, Shanghai, China;3. Department of Information Systems, City University of Hong Kong, Hong Kong, China;4. School of Management, Zhejiang University, Hangzhou, China |
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| Abstract: | Group buying, which provides daily discounts for various services and products, is a new form of marketing that has attracted the attention of both practitioners and academic researchers. However, it is unclear what factors influence the effectiveness of a group buying promotion. This study presents an analysis of 862 restaurant group buying deals based on the secondary data collected from a restaurant guide website. The results indicate that group buying effectiveness – namely, the number of coupons sold, satisfaction improvement, and return intention of group buying customers – can be affected by the discount depth of a deal as well as the service quality and popularity of a restaurant. These findings provide useful insights regarding the elements that are necessary to make a group buying promotion work. |
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| Keywords: | Group buying Discount Service quality Satisfaction Return intention Restaurant |
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