Research On The Motivations Of Internet Word-of-Mouth Referral Based On Group-Buying Websites

With the development and popularization of Chinese social media and the use of Internet word-of-mouth (IWOM), group-buying websites have quickly developed. Using the spread of IWOM referral, group-buying websites can acquire new customers and improve their profitability based on internet. By studying word-of-mouth literatures and combining with the specific context of group-buying websites, this paper studies the impact of the motivations of IWOM referral on word-of-mouth behavior venting negative feelings.This paper points out the motivations of IWOM referral though studying word-of-mouth literatures and interview. This study indicates which directly affect motivations of IWOM referral including:concern for other consumers, social benefits, expression of positive emotions, convenience, the margin of preference and supporting group-buying websites. Referral reward and convenience indirectly affect IWOM referral. And this paper builds a conceptual model on motivations of IWOM referral based on group-buying websites. In this study, using 343 questionnaires survey data, hypotheses are verified by structural equation modeling method. The results show that:First of all, IWOM referral behavior is significantly affected by concern for other consumers, expression of positive emotions, supporting group-buying websites and the margin of preference. In addition, IWOM referral behavior is indistinctively affected by social benefits and convenience. What's more, Referral reward significantly affects concern for other consumers, social benefits, expression of positive emotions and support group-buying websites, then it indirectly affects IWOM referral. Finally, convenience significantly affects expression of positive emotions, and then it indirectly affects IWOM referral. The main innovation places are as following:Based on the specific environmental background of group-buying websites, this paper brings three new motivations of IWOM referral—the margin of preference, convenience and supporting group-buying websites. And this paper builds a conceptual model on motivations of IWOM referral based on group-buying websites.According to the research findings, this study gives the following management recommendations for group-buying websites. Group-buying websites' managers use IWOM referral as an important marketing tool. During management of the motivations of IWOM referral, they should improve the internal needs of consumers, strengthen the referral reward, improve convenience on consumption and referral and make an appropriate margin of preference.