Factors Influence Consumers to Make Buying Decision on Group-Purchasing Service in Vietnam

FACTORS INFLUENCE CONSUMERS TO MAKE BUYING DECISION ON GROUP-PURCHASING SERVICE IN VIETNAM

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ABSTRACT

Recently, group purchasing model is developing rapidly and impressively in Vietnam as a type of online shopping. This study aims at investigating the motivations that influence consumers' intention to purchase on group purchasing sites. I find that social inference, the buyers' needs, satisfactions in price discount and perceived playfulness have significant positive effects on their intention to buy on group purchasing sites.

Keywords: Group-purchasing, Group-purchasing site, social inference, satisfaction in price discount, perceived playfulness.

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Table of content

I/ INTRODUCTION 3

II/ LITERATURE REVIEW 4

III/ THEORETICAL MODEL 5

IV/ METHODOLOGY 8

V/ REFERENCES 10

I/ INTRODUCTION

In Vietnam, according to electronic information website Maskonline, 6/2010, website phagia.com appeared officially, marking an underground river to the field of electronic commerce in the country. Consecutive months later, many other group purchasing sites competed with one another to be born, as cungmua.com, muachung.vn, nhommua.com... According to uncompleted statistics, up to now, Vietnamese market has about 97 sites that offer group purchasing services. Besides, there are 14 pages integrated discounted products and services from those sites. Since the number of pages of this business model is more and more, so all those websites try their best in building brands (E-Money, 2011).

Group purchasing model adopts "tipping point" mechanism in which a minimum number of participants for each deal is required. The transaction only occurs when the number of actual participants is greater than the minimum number and the potential buyers have prepaid for the deal (Cohen, 2009). A deal usually refers to the product or service with a price discount. When the number of people reaches a certain limitation, customers will enjoy preferential policies on prices through direct discounts on goods or services or they can buy vouchers with attractive prices (E-Money, 2011).

Mr. Khanh – representative of cungmua.com - raised the difficulties Groupon model development in Vietnam, which is capable of replication and coordination. This model