Abstract

Group buying websites have emerged as a major channel in e-commerce because they encourage consumers to negotiate deals with product/service providers. They also feature a “deal of the day” for consumers and an anticipated transaction volumes and discounts. Consumers can leverage their collective bargaining power to acquire products or services at discount prices when a minimum number of people are willing to purchase collectively. Considering the characteristics of collective bargaining power in Internet group buying and the continuance behavior of online consumers, this study integrated consumer psychological factors into expectation–confirmation theory to examine consumer cognitive processes. A survey was conducted to collect and analyze empirical data from ihergo—a popular Taiwanese group buying website. The results demonstrate that in the pre-purchase phase, consumer trust in group buying initiators and websites significantly affects their perceived risk and attitude toward Internet group buying deals, generating more positive expectations and group buying intentions. Moreover, in the post-purchase phase, a higher level of confirmation reflects higher trust and lower perceived risk. In addition, trust, perceived risk, and attitude significantly affect consumer satisfaction. This study suggests both practical and theoretical views for elucidating and enhancing the effectiveness of collective power in e-commerce.

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