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

Zhang, Ziqiong, Zili Zhang, Fan Wang, Rob Law, and Dechao Li. “Factors influencing the effectiveness of online group buying in the restaurant industry.” International Journal of Hospitality Management 35 (2013): 237–245.

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.

Link to the original paper

https://www.sciencedirect.com/science/article/abs/pii/S0278431913000959