Factors influencing the effectiveness of online group buying in the restaurant industry

Ziqiong Zhang, Zili Zhang, Fan Wang, Chun Hung Roberts Law, Dechao Li

Research output: Journal article publicationJournal articleAcademic researchpeer-review

62 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)237-245
Number of pages9
JournalInternational Journal of Hospitality Management
Volume35
DOIs
Publication statusPublished - 1 Dec 2013

Keywords

  • Discount
  • Group buying
  • Restaurant
  • Return intention
  • Satisfaction
  • Service quality

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

Cite this