A Typology of Online Group Buyers: Using Means-end Structures for Benefit Segmentation

Given the enormous growth and significant impacts of group buying on Internet business marketplaces, this study aims to develop a typology of online group buyers based upon benefits pursued by them and develop the hierarchical decision making process model for different segments of consumers from a Means-end Chain (MEC) theory perspective. The laddering interview technique was used to interview 52 online group buying users and to capture their reasons behind the online shopping behavior, with grounded theory used to determine categories, which were then classified into attributes, consequences/benefits, and values/goals. Cluster analysis was conducted based on benefits level factors and three segments of consumers were identified: economic shoppers, balanced shoppers, and destination shoppers. Three decision making process model were developed and compared. Both similarities and differences were identified. This study has the potential to make significant contributions to both IS research and e-business regarding consumer online group buying decisions.