Developing E-Loyalty Amongst Impulsive Buyers via Social Influence on Group Buying Websites

Group buying websites typically need a pre-determined minimum number of buyers for a deal before that deal is on. With the proliferation of these websites, it becomes very crucial for marketers to understand how they can capture online group sales early. Consumers at group buying websites are usually not aware of the deals prior visiting the websites. Therefore purchases made at group buying websites are usually impulse purchases, i.e. unplanned buys. With a 24-hour countdown timer or an indication of the number of deals sold in real time, consumers may be misled into committing to purchases, which may cause them to have negative feelings and hence low loyalty. This study therefore serves to investigate loyalty in group buying websites. In trying to “tempt” consumers to buy the deals impulsively, it is important to understand how this will eventually affect their loyalty. Knowing what can motivate consumers to make a purchase as early as possible is also important. Our findings help group buying websites understand how they can better design their online platforms so that they can get consumers to commit fast, while still build loyalty in them. This is very important in ensuring the long-term survival of group buying websites.