Intention to Repurchase Group Coupon Service: The Intertwined Effect of Service Quality of Vendor and Service Provider

Abstract

The success of Groupon creates many followers who attract consumers by providing location-based electronic coupons with big discount. Despite of its great growth rate, there were many complaints from consumers. The purpose of this research is to learn how service quality of vendors (i.e. the websites selling the electronic coupons) and service providers (i.e. the stores where consumers can redeem coupons) interactively affect the intention to repurchase coupons from a vendor or a service provider. The results indicate that service quality of both the vendor and the service provider will affect the intention to repurchase coupons from vendor, but the service provider’s service quality has higher effect. It means that if a service provider does not provide good quality, it will affect the sales of the coupon vendor. The service quality of service provider will affect the intention to buy service from the service provider at either the regular price or the coupon price. These findings indicate the coupon vendor should be careful in recruiting service providers.