Analyzing Factors Affecting loyalty on Group-Buying Platforms: A Case Study of Pinduoduo

Chong Chie Wong, Pengting, Wei Chien Ng and Yu Qing Soong
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Chong Chie Wong: Department of Accountancy and Business, Tunku Abdul Rahman University of Management and Technology, Penang Branch, 11200 Tanjung Bungah, Pulau Pinang, Malaysia
Pengting: School of Management, Universiti Sains Malaysia 11800 USM Pulau Pinang, Malaysia
Wei Chien Ng: School of Management, Universiti Sains Malaysia 11800 USM Pulau Pinang, Malaysia
Yu Qing Soong: Department of Accountancy and Business, Tunku Abdul Rahman University of Management and Technology, Penang Branch, 11200 Tanjung Bungah, Pulau Pinang, Malaysia School of Management, Universiti Sains Malaysia 11800 USM Pulau Pinang, Malaysia

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 14, 388-400

Abstract: In the current global economy, group-buying e-commerce platforms like Pinduoduo continuously adapt to changing consumer attitudes and behaviors. The rapid development of e-commerce has transformed shopping habits and consumption patterns globally, especially after the emergence of Covid-19 where consumers changed from physical purchasing to online purchasing. Therefore, attracting and retaining customers and increasing consumer loyalty is a core concern amidst fierce competition, especially when there are so many group-buying e-commerce platform emerged during the pandemic. Despite the success of platforms like Pinduoduo, improving user loyalty remains a critical challenge to survive in this gruesome competition. Frequent price fluctuations, inconsistent product quality, and poor after-sales service are key points for users, negatively affecting consumer satisfaction and loyalty. By the end of 2022, over six group-buying platforms in China ceased operations due to low user retention and engagement rates. Therefore, this study aims to explores how Pinduoduo can effectively retain customers and enhance loyalty by evaluating consumer loyalty through constructs such as price, product quality, and service quality. Data from 418 consumers were collected via an online questionnaire, and structural equation modeling was adopted to test the research hypotheses. The results show that product price, product quality, and service quality have significantly impact on consumer satisfaction, which plays a crucial mediating role in loyalty. Based on these key factors, the study provides guidance for group-buying e-commerce platforms to cultivate customer loyalty and attract potential customers. This will subsequently increase the revenue from group-buying e-commerse platforms, which is essential to the growth of the company.

Date: 2024
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