Does altruism matter on online group buying? Perspectives from egotistic and altruistic motivation

Purpose – The purpose of this paper is to identify whether altruistic motivation is a significant factor in online group buying and to examine the effects of altruistic and egotistic motivation on online group buying intention through the psychological processes of trust and satisfaction. Design/methodology/approach – A field study on Ihergo ( www.ihergo.com /) was chosen because it is the largest online group buying marketplace in Taiwan. An online survey method was used to collect data. Returned questionnaires numbered 302 responses with 20 incomplete data, resulting in 282 valid responses for data analysis. Collected data were analyzed using structural equation modeling. Findings – The findings of the study shows that altruism is relevant to online group buying, and trust and satisfaction have significantly positive effects on online group buying intention. The results emphasize that altruism, reciprocity, and reputation of motivations are significantly positive predictors of trust. Altruism and reciprocity have significantly positive effects on satisfaction, whereas reputation does not. Research limitations/implications – Altruism, reciprocity, and reputation represent three key elements of online group buying behavior. Integration of the altruism, reciprocity, and reputation results in a better explanation on online group buying intention through the psychological process, trust, and satisfaction. This study extends the value of online group buying and sheds light on the potential effects of altruistic and egotistic motivation on online group buying intention. Practical implications – Online group buying is more complex than individual online shopping and is not easy to fulfill customer requirements. To satisfy online group buying, e-vendors might provide altruistic activities, enhance reciprocal services and products, develop better reputation mechanisms, and present an easier approach to encourage online group buying on the web site. Originality/value – To the best of the knowledge, this is first paper to examine the effects of altruism on online group buying. The contribution of this study draws attention to the altruistic value of electronic commerce, by theorizing and validating the effects of altruistic and egotistic motivation on online group buying intention through psychological processes (trust and satisfaction).