PACIS 2020 Proceedings


Online group buying is typically a two-phased process from online sale to offline redemption. However, most research on online group purchase has only focused on one of these two phases. Drawing from the signaling theory, we propose an integrated two-phased model of online group buying, hypothesizing that quality- signaling, price-signaling and availability-signaling affect deal effectiveness, which subsequently impacts sales performance. Moreover, we investigate how weather condition moderates the relationship between deal effectiveness and sales performance. This two-phased model is verified by a unique dataset of 3,539,697 observations of 53,401 online deals from a group sales company. The results of a fixed-effect model largely support the proposed hypotheses. Our findings also suggest that rainy weather weakens the casual relationship between deal effectiveness and sales performance. These findings provide insights to online group buying platforms on how to enhance deal effectiveness and sales performance through designing different signals of deal characteristics.



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