Professional Documents
Culture Documents
1, 2017 1
Xiaqing Zhao*
Xi’an Qingsong Technology Co., Ltd.,
7 Biyuan 2nd Road,
Hi-Tech Development Zone,
Xi’an, Shaanxi, 710118, China
Email: charlenezhao@sina.cn
*Corresponding author
Reference to this paper should be made as follows: Zhao, X. and Wan, H.L.
(2017) ‘Drivers of online purchase intention on Singles’ Day: a study of
Chinese consumers’, Int. J. Electronic Marketing and Retailing, Vol. 8, No. 1,
pp.1–20.
1 Introduction
Singles’ Day, falling on every November 11th, is a day of celebration for those people
who are still living a single life. This date is chosen based on the connection between
singles and the number ‘1’. Singles’ Day was initially celebrated in Nanjing University in
China in 1993 as a version of Valentine’s Day for unattached people. This tradition is
gradually carried into society from university as students graduate. Some parties are held
on Singles’ Day aiming to create romantic chances for single person. November 11, 2011
was marked as the Singles day of the century because of having six ‘1’ (QUARTZ,
2014).
Singles’ Day was once a little known celebration day. Now it is the world’s largest
online shopping event surpassing US Cyber Monday in terms of sales with the help of
Taobao advertising it as an occasion to splurge on oneself. For instance, men could easily
seek solace by buying electronic devices – an answer to Valentine’s Day and most other
popular festivals in China with a focus on buying gifts for others (QUARTZ, 2014). On
Singles’ Day, most e-retailers in Taobao and Tmall are required to offer discounts and
those having 50% discounts are featured on the home page of Tabao.com and Tmall.com
to attract consumers’ attention. It is reasonable to assume that a large group of consumers
are lured by big discounts while not everyone falls into this category. A woman from
Zhejiang province bought herself a 13.33-carat diamond at the cost of $3.37 million
(WantChinaTimes, 2013). Nowadays Singles’ Day has become a special day not only for
singles, but for all fashionable people.
The sales on Singles’ Day in 2012 hit $3 billion, and this figure reached $5.75 billion
on the next Singles’ Day in 2013, more than the combined sales of US retailers during
Cyber Monday and Black Friday (Bloomberg, 2013). Approximately 402 million
people, almost a third of the Chinese adult population, visited Taobao or Tmall on the
Singles’ Day and 100 million RMB was spent every minute over the course of 24 hours.
Moreover, it is astonishing that within the six minutes of the start of November 11, 2013,
one billion RMB transactions on both platforms has been made. Since Alibaba initially
launched its first sales campaign in 2009 on Singles’ Day, it ended up with a continuous
rise in sales by virtue of its two platforms year by year. The total transaction revenue on
the passing Singles’ Day, 11/11/15 comes to $14.3 billion (Bloomberg, 2015). Thus
several rivals have joined the Singles’ Day bandwagon, for instance, Jingdong Mall,
Suning.com, and Jumei.com, which all provide specific marketing campaign to boost
sales. However, the performances of rivals are incomparable to that of Taobao
Marketplace and Tmall (Bloomberg, 2013).
The significance of this study is twofold in terms of its theoretical contribution and
managerial contribution. Firstly, there have been extensive studies regarding
understanding consumer online purchase behaviour. For instance, Park and Kim (2003)
identify information of an online store such as product and service information quality,
and user interface quality as important predictors of consumers purchase intention.
Nonetheless, little academic literature has been done with a focus on drivers of
consumers online purchase intention on a particular day except for several studies done in
the context of Black Friday or Cyber Day in the states. Specifically, Swilley and
Goldsmith (2013) argue that consumers purchase intention on Cyber Monday is mainly
due to gift needs. Online channels allow consumers a wider selection of gifts choices and
are convenient, avoiding crowds in store during the peak holiday shopping. In contrast,
Black Friday provides consumers an enjoyable shopping experience since it is usually
Drivers of online purchase intention on Singles’ Day 3
done with close friends or family members (Swilley and Goldsmith, 2013). Therefore, the
findings of the present study will add to the existing body of knowledge in the domain of
online shopping consumer behaviour on a particular day in the context of China.
Secondly, a better understanding of such drivers will allow e-retailers to make efficient
marketing strategies to cater for consumers’ preference to boost their sales on Singles’
Day and sustain competitive advantage.
The purpose of the present study is to understand the drivers of Chinese consumers
online purchase intention on Singles’ Day so as to aid e-retailers in working out
marketing programs that can help increase sales on that day. There are several frequently
employed theories in consumer behaviour research, for instance, the technology
acceptance model (Chiu et al., 2009), the theory of reasoned action, the theory of planned
behaviour, and the stimulus-organism-response (SOR) framework. Specifically, SOR is
employed in the present study. A conceptual framework is proposed explaining either
direct or indirect relationship between four drivers, namely promotion, e-store
atmosphere, word of mouth, advertising and consumption rituals and online purchase
intention on Singles’ Day with perceived value, shopping enjoyment, impulsive buying
orientation, browsing as mediators.
Little research has done focusing on factors influencing consumers online purchase
intention on Singles’ Day. In the following sections, four drivers such as promotion,
e-store atmosphere, word of mouth, and advertising and consumption rituals are justified
based on the literature review including those that investigate consumers purchase
intention in the context of Black Friday or Cyber Day in the states.
2.1 Promotion
2.1.1 SOR framework
The SOR paradigm proposed by Mehrabian and Russell (1974) and grounded in
environmental psychology explains that a stimulus (S) located in physical environment
has an effect on people’s internal affective and cognitive evaluations (O i.e., organism),
which in turn results in behavioural responses (R) (Eroglu et al., 2001). This model has
been widely employed in numerous studies on consumer behaviour as a theoretical basis.
Applied into online shopping context, a stimulus can refer to the product features, price,
advertising, website layout, and music, which exhibit an effect on consumers’ approach
or avoid behaviour with emotional states serving as a mediating variable. In this study,
promotion is assumed as one of the drivers determining consumers online purchase
intention on Singles’ Day based on the SOR framework.
attractiveness of promotion instead of in need. Chen et al. (1998) also claim that
promotions are frequently used in retailing to boost sales via changing consumers’
purchase decision. However, promotions are not always credible. An increasing number
of consumers start to wonder whether the price is authentically reduced especially when
there is an incredible big price reduction (Chen et al., 1998). Nonetheless, promotion is
still an important factor usually used for affective evaluation of a product and it serves as
an economic incentive to purchase a product (Honea and Dahl, 2005). Moreover, offering
promotions is still a widely employed and perceived effective way to attract consumers
both online and offline, especially during holiday seasons with higher promotion
responsiveness as reflected in greater spending (Oh and Kwon, 2009). Grewal et al.
(2003) find that online shoppers generally tend to perceive lower prices offered in online
stores than in physical malls.
positive e-words of mouth about an item online, the potential consumer is more likely to
have a positive expectation about the product, which leads to his or her
purchase intention. On the contrary, if most e-words of mouth are negative, he or she will
possibly have a negative perception of the product, which reduces his or her purchase
intention.
Studies show that Chinese consumers have a strong tendency of following the
mainstream. In cognitive psychological point of view, it is called herding, which can be
explained as the alignment of individuals’ thoughts and behaviour in a group through
interaction (Raafat et al., 2009). Herd mentality is used to describe a kind of human
behaviour which is influenced by peers to adopt a herd following behaviour such as
following trends and paying much attention to word of mouth message. Xia and Guan
(2014) affirm that the purchase behaviour and recommendations of relatives and friends
have a significant influence on consumers purchase intention. The rapid widespread use
of group buying websites in China also supports the powerful impact of word of mouth
on Chinese consumers with herd mentality (Cheng et al., 2012; Liu and Sutanto, 2012).
Driven by the effect of word of mouth, the group of hesitating buyers are more easily
influenced to purchase the product with large number of existing orders and positive
reviews. Accordingly,
2.4 Browsing
Floh and Madlberger (2013) suggest that exposure to in-store stimuli or a product may
result in unplanned or impulsive buying orientation. Although browsing in a store does
not necessarily predict the purchase behaviour, the increasing engagement in browsing
tends to increase the possibilities of consumers’ impulsive buying orientation. This is
further supported by Moe’s (2003) findings that people in the process of browsing in a
store tend to purchase items which are not in plan driven by impulsive buying orientation
since he or she is more receptive to environmental stimuli in browsing. Hence,
H9 The more the customer is engaged in browsing in the e-store, the more possible
he/she has impulsive buying orientation.
acknowledging the power of discourse put forth by Foucault (Hall, 2011). The discourse
of advertising helps consumers’ identity construction if the advertisement is interpreted
or encoded with some resonance with consumers themselves. In this study, Singles’ Day
as an online shopping festival is constructed in consumers’ minds with the help of
advertisement.
Ritual behaviour is pervasive in everyday life including media, religious, gift-giving,
shopping as well as business. From a marketing perspective, Rook (1985) defines ritual
as a type of expressive, symbolic activity constructed of multiple behaviours that occur in
a fixed, episodic sequence, and that tends to be repeated over time. More specifically,
ritual symbols are incorporated in advertisements to remind consumers, for example,
when to send a card or hold a celebration. Taobao Marketplace succeeds in this. For
instance, the aim for Singles’ Day shopping advertisement is to appeal to customers by
playing on the idea of singleness, which is the reality faced by millions of young people
in China. Taobao Marketplace initially post advertisement “It is too miserable to shop
alone in the mall on Singles’ Day. Exciting discounts are available in Taobao. Only for
one day!”. The former part, miserable, Singles’ Day, alone, all three words create the
sense of loneliness associated in in-store shopping while an attractive sell point,
promotion, is offered on the online store, which successfully arouse resonance of single
youths. Meanwhile, Otnes and Scott (1996) justify that advertisement campaign has an
effect on ritual changes as demonstrated by an example that advertisement of diamond
ring in Japan transfer its meaning as a gift offered from the groom’s family instead of the
widespread ritual as an engagement ring. In this regard, advertisement placed by Taobao
Marketplace has shifted the original rituals on Singles’ Day such as participation in
singles party to a new ritual recommending singles to splurge online.
3 Methodology
3.1 Sample
The sample poll targeted consumers with online purchasing experience on Singles’ Day
in China. An online survey questionnaire is distributed via convenience and snowball
sampling. Of the 214 eligible respondents, 108 are male and 106 are female. It was found
that most of respondents are less than 34 years old. 67.3% of the respondents are with the
salary below 4,000 RMB, followed by 16.3% in the range of 4,000 RMB to 5,999 RMB,
and 10.3% in the range of 6,000 RMB to 9,999 RMB. As for occupational pattern, it was
found that 96 out of 214 respondents are students and 110 are employed.
3.2 Measures
The questionnaire comprises of seven questions to tap demographic information of
respondents in terms of age, gender, income, and education background and 32 items to
measure the constructs of the study using a five-point Likert scale ranging from strongly
disagree to strongly agree. The adapted scales were perceived value (Chandon et al.,
2000); e-store atmosphere, shopping enjoyment and browsing (Floh and Madlberger,
2013); impulsive buying intention (Floh and Madlberger, 2013); online purchase
intention (Thompson et al., 1991); and two items for advertising and consumer rituals.
The scales for promotion and word of mouth and two items for advertising and consumer
rituals were self-developed. The questionnaire was translated into Chinese, the
respondents’ native language before it was distributed online.
10 X. Zhao and H.L. Wan
3.3 Procedures
An online survey questionnaire designed using Qualtrics was employed to collect data
from respondents who had online purchasing experience on Singles’ Day. This particular
website was chosen as it allows the researcher to access real-time data and respondents to
access it any time. More importantly, it is easy to transfer the collected data into SPSS for
further analysis. The questionnaire link was sent to friends who shopped online
frequently with a request to distribute the link to their friends. The data collection process
started from July 10, 2014 and ended on July 15, 2014. The total number of responses
collected was 387, but 114 were incomplete. 59 completed surveys were abandoned since
those respondents answered ‘No’ in the first question meaning that they do not have
online shopping experience on Singles’ Day. Consequently, 214 responses were available
for data analysis.
.327 (e-store atmosphere and shopping enjoyment), .361 (shopping enjoyment and
impulsive buying orientation), .393 (impulsive buying orientation and purchase
intention), .505 (word of mouth and browsing), .449 (browsing and impulsive buying
orientation), .511 (advertising and browsing).
Table 2 Correlations
1 2 3 4 5 6 7 8
Promotion 1
Perceived value .606 1
E-store .409 .435 1
atmosphere
Shopping .493 .518 .327 1
enjoyment
Impulsive .401 .308 .258 .361 1
buying
orientation
Word of mouth .451 .493 .319 .460 .477 1
Browsing .389 .366 .312 .422 .449 .505 1
Advertising and .481 .501 .386 .600 .494 .533 .511 1
consumption
rituals
Purchase .531 .616 .315 .636 .393 .532 .386 .651
intention
Table 3 Coefficients
Collinearity statistics
Model Beta t Sig.
Tolerance VIF
1 (constant) –.765 .445
Promotion .119 1.913 .057 .551 1.815
Perceived value .307 4.830 .000 .525 1.903
E-store atmosphere –.062 –1.167 .244 .753 1.328
Impulsive buying orientation .011 .192 .848 .671 1.490
Word of mouth .136 2.276 .024 .592 1.689
Advertising and consumption rituals .387 6.268 .000 .558 1.793
R-square .561
Also, Hypothesis 10 that states that advertisement and consumption rituals on Singles’
Day positively influence consumers’ purchase intention is supported. R2 of .561 indicates
that the proposed model explain 56.1% of the variance in online purchase intention on
Singles’ Day.
4.4 Mediation
Based on the results generated from PROCESS (Table 4), the regression of promotion on
online purchase intention, ignoring the mediator, was significant, b = .57, t (212) = 9.12,
p < .001. Secondly, the regression of promotion on the mediator, perceived value, is also
significant, b = .53, t (212) = 11.09, p < .001. The next mediation process shows that the
mediator (perceived value), controlling for promotion, is significant, b = .57,
t (211) = 7.04, p = .0000. The last step analysis reveals that, after controlling for the
mediator (perceived value), promotion is also significant predictor of online purchase
intention, b = .27, t (211) = 3.78, p = .0002, but it shows a reduction in effect. It is
concluded that perceived value partially mediates the relationship between promotion and
online purchase intention on the Singles’ Day. Therefore, Hypothesis 3 that perceived
value mediates the relationship between promotion and online purchase intention is
supported.
Table 4 Mediator process analysis
R2 Beta t df p
Promotion .3673 .5306 11.0946 212 .0000
Outcome: perceived value
Perceived value .4186 .5660 7.0415 211 .0000
Promotion .2659 3.7783 211 .0002
Outcome: purchase intention
Promotion .2820 .5663 9.1240 212 .0000
Outcome: purchase intention
5 Discussion
5.1 Promotion
The results of the study confirm that promotion is positively related to consumers online
purchase intention with perceived value serving as a mediator, which coincides with
findings. That is exactly the strategy most e-stores employ on Singles’ Day. Consumers
generally have positive perceptions of product value if they are provided with promotion
due to the increasing perceived savings and positive perceptions of deal value. Moreover,
perceived value serves as a mediator which has a strong correlation with purchase
intention. Specifically, consumers pursue either utilitarian benefits (monetary savings) or
hedonic benefits (entertainment from promotion advertisement) (Chandon et al., 2000).
Their perceived value directly affects their purchase intention. However, promotion does
not have a significant strong direct influence on purchase intention based on the results.
This may be caused by a phenomenon that consumers nowadays have a more cautious
Drivers of online purchase intention on Singles’ Day 13
attitude towards the authenticity of retailers’ promotion strategies. Their perceived value
of promotion is decreasing since a few retailers are reported to raise the price of
promoted products first then discount them on Singles’ Day. In this, a group of
consumers sensitive to the price of product are less encouraged by heavy promotions on
Singles’ Day since they find it is not real price discounts in fact. In addition, some free
gifts provided by e-retailers are found to be of poor quality without utility.
Nonetheless, promotion is still used as an important marketing tool for e-retailers by
virtue of influencing consumers’ purchase intention. It is suggested that e-retailers should
use effective and authentic promotions to attract new consumers. The higher the
perceived value of the products on sales is, the more easily the consumers are stimulated
to make an initial purchase. Furthermore, promotions like coupon distribution are
effective in offering those loyal consumers with a reward for their purchase. In addition,
if a time limited promotion is provided on Singles’ Day, it will stimulate consumers’
urgent need to purchase.
mouth message is given by those people with closer relationship with the message
receiver (Bansal and Voyer, 2000; Frenzen and Nakamoto, 1993). For instance, Chinese
consumers’ decision on buying imported infant formula and brand chosen heavily rely on
recommendations of relatives (Xia and Guan, 2014). Besides, a number of Chinese
consumers start to know Singles’ Day online shopping craze from surroundings talk
about it. Thus, they are encouraged to browse online shopping malls on Singles’ Day
with a curious mind. The more the consumer is engaged in browsing in the e-store, the
more possible he or she has impulsive buying orientation due to the influence of exciting
environmental stimuli in e-store on Singles’ Day, thus leading to purchase intention.
Moreover, one of the Chinese consumers’ characteristics, herd mentality, contributes to
the fact that consumers are used to be affected by word of mouth message especially in
making a purchase decision.
In this, e-retailers should encourage those consumers who have purchase experiences
in their store to leave a user experience or post a picture about the purchased products.
And, there is a rating system for consumers to justify the usefulness of the e-word of
mouth message. It is possible to offer rewards like coupons to those providing high rating
recommendations to others. On one hand, old consumers are stimulated to share purchase
message to potential consumers. On the other hand, e-word of mouth message helps
potential consumers to make a purchase decision. E-retailers may also provide some
rewards for those consumers who have succeeded in recommending a product to their
friends to purchase. In this, it is reasonable to set a specific number.
higher real-time sales on Singles’ Day on their platform homepage. The real time ratings
will navigate those shoppers without purchasing plan to browse around the popular
stores, thus increasing the possibility of purchase resulting from impulsive buying
orientation. For e-stores on different platforms, they can initially send their advertisement
designed specifically for Singles’ Day to those consumers having purchasing experiences
in their store in advance. Those initial launched e-stores also can invest on advertising
their stores on the homepage of the online shopping platform to increase the click rate
when Singles’ Day is approaching.
6 Conclusions
This paper theoretically has expanded research on drivers of consumers online purchase
intention on Singles’ Day in China. Previous studies on this have been mainly limited to
investigation of consumers purchase intention in a general context. The present paper
specifically put forward a new research focus, establishes a conceptual framework to
discuss the motives of consumers online purchase intention on Singles’ Day. Overall, it
was concluded that promotion, e-store atmosphere, word of mouth, advertising and
consumption rituals have a positive impact on Chinese consumers online purchase
intention on Singles’ Day. The correlation between them is found to be positive ranging
from medium to high. The most influential driver is advertising and consumption rituals.
The results of advertising and consumption rituals reveal that Chinese consumers are
motivated by various advertisement theming Singles’ Day to purchase online. Online
shopping on Singles’ Day has become a consumption ritual of an increasing number of
Chinese consumers.
Regardless of how Singles’ Day originated, there is no misunderstanding on the
impact of this single day in terms of online sales. Singles’ Day has five years history as
an online shopping festival witnessing the rapid development of e-commerce in China.
E-retailers prepare for this big day two or three months in advance in terms of stocking
up commodities for 24-hours of non-stop supply on that day, advertising, providing
commodities, and redesigning the store specifically for 11.11. Singles’ Day sales in 2013
on Taobao Marketplace were at record highs, with $5.75 billion spent by consumers
online on this one day alone. Hence, it is suggested that e-retailers make authentic
16 X. Zhao and H.L. Wan
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Drivers of online purchase intention on Singles’ Day 19
Appendix A
Appendix B