The Impacts of Online Social Network and Website Qualification on the Customers’ Purchase Intention via Deal-of-the-day Website in Thailand

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Dissatat Prasertsakul
Pakawakarn Koottatep

Abstract

Nowadays, “E-Commerce” has grown dramatically and become a multi-billion U.S. dollar business due to the widespread of the Internet usage and its continuingly improving connection speed. With the arrival of online social network a several years ago, many “E-Commerce” websites have evolved to take advantage of its ability to connect customers with their friends, to update and to shares news, events or products and promotion online. These fascinating features bring about the birth of “Social Commerce”. The paper aims to empirically investigate the impacts of the website qualifications and online social network on consumers’ purchase intention from deal-of-the-day websites that features discounted gift certificates usable at local or national companies. A survey method approach was employed in this study. The information was gathered from 400 respondents who were using both online social network and deal-of-the-day websites in Thailand, whilst the hypotheses in the proposed model were tested using multiple regression analysis. The results revealed that antecedents of trust in product recommendation from online social network were perceived benevolence/integrity, perceived ability, and perceived critical mass. The trust in product recommendations was found to have an important impact on customers’ intention to purchase products/services from deal-of-the-day website. While Custom Satisfaction was found to be an important predictor of Website Loyalty, customers’ trust in deal-of-the-day websites was also found to be an important intervening variable between trust in product recommendations and customers’ intention to purchase products/services. From a practical perspective, companies can increase their customers’ purchase intention by encouraging trustworthy and powerful members in customers’ online social communities to provide positive product recommendations. They should also emphasize on improving the trustworthiness of their social commerce websites. The major contribution of this study is that it is the first attempt to investigate the impact of online social network on customers’ intention to purchase products/services from deal-of-the-day websites in emerging economies. 

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