Factors influencing loyalty intention behaviours of online social buying consumers in South Africa

Abstract

Social buying is a recent marketing innovation in which provides Pareto-improving welfare gains to merchants, consumers, and brokers. Consumers benefit from access to significant discounts on advertised products and services, the broker benefits from taking a significant cut in each transaction with very low fixed costs, and merchants are able to reduce their advertising costs, gain access to new markets and drive traffic to their stores. The phenomenal growth of social buying carries commensurate risks for brokers, including increased competition due to a lack of service differentiation and low entry barriers. The complete social buying transaction is completed over two stages: the initial online e-commerce transaction and the subsequent fulfilment transaction where the voucher is redeemed with the merchant. In order to explore the sustainability of the social buying business model, it is necessary to identify the factors which drive loyalty behaviours in social buying, as well as the interrelationships between the factors. This research proposes from the marketing literature Oliver’s (1980) expectancy-disconfirmation theory (EDT) as the main theoretical framework on which to model these relationships. EDT is then successfully synthesised with DeLone and McLean’s (2003) information systems success model to create a framework which can appropriately model both the online and traditional stages of the social buying transaction. This study contributes to the marketing literature by establishing EDT as a suitable framework for investigating social buying. It is believed that this study is the first to do so. Furthermore, it is believed this is the first study examining the social buying innovation in the South African context.