The Effects of Risk and Hedonic Value on the Intention to Purchase on Group Buying Website: The Role of Trust, Price and Conformity Intention

By assuming that group buying websites offer consumers an opportunity to gain consumption value from experiential products with potential risks, a theoretical model was proposed to explore the factors affecting buyers’ purchase intentions. In this model, trust, price consciousness and conformity behavior were viewed as antecedents of risks. A study of 164 responses found that the purchase intention was induced primarily by hedonic value; while at the same time, perceived risks will decrease the subjects’ purchase intention, and trust is the only one that can effectively reduce the risks. The results indicate that whether to purchase in group buying website or in brick-mortar stores is actually a trade-off between the perceptions of values gained and risks exposed; and trust plays a pivotal role in reducing risk, leading to stronger purchase intention. Finally, academic and managerial implications are offered.