Decision-making styles of restaurant deal consumers who use social commerce

Abstract

Purpose - The purpose of this study is to segment consumers according to their decision-making styles in the context of social commerce. Additionally, the differences among consumer segments in consumer innovativeness, perceived risk, satisfaction and demographic characteristics are evaluated. Design/methodology/approach - A total of 384 respondents who shopped for restaurant deals through social commerce participated in this study through an online survey. Two-step cluster analyses were used to segment social commerce consumers into groups, using their decision-making styles. Findings - The results showed three types of social commerce consumers of restaurant deals: innovative brand-preferring consumers; realistic consumers; and passive consumers. Innovative brand-preferring consumers chose specific brands and showed the most innovativeness, while realistic consumers and passive consumers were price-conscious and far more cautious in purchasing restaurant deals using social commerce. Passive consumers were, in addition, confused by overchoice. All three consumer groups perceived higher risks to privacy in purchases using social commerce. Passive consumers were especially aware of the risk, while the innovative brand-preferring consumers and the realistic consumers were less concerned about risk. Consumers were especially likely to perceive economic risk, performance risk, social risk, psychological risk, privacy risk and time risk. Innovative brand-preferring consumers were more likely to be innovative and showed a higher level of satisfaction, while passive consumers showed the lowest satisfaction and the least innovativeness. Research limitations/implications - This study provides additional insights on consumer decision-making styles in the context of social commerce in Korea. Practical implications - Consumer decision-making styles can help restaurant managers to develop deals tailored to specific types of consumers, as well as create customized products and services. Originality/value - This study is one of the very few attempts to investigate consumer decision-making styles in social commerce for restaurant deals, so it contributes to the literature on social commerce in the hospitality industry. This study shows that consumer decision-making styles are important in understanding the behavior of social commerce consumers.