Economics and Value of Information Systems


Group purchasing sites have recently gained tremendous popularity on the Internet. Besides the collective buying model, theleading website,, also introduces a tipping point mechanism to the U.S. e-market. The current study creates atheoretical model that integrates the theory of mind with models from e-commerce research to further study the buyer’sdecision making influenced by a shopping group. We find that the buyer’s satisfaction with price discounts, their expectationof quality, and group inference have significant positive effects on the buyer’s purchase intention. The findings provideseveral constructive implications to practitioners as well.