Purpose – The purpose of the research is to examine the process of consumer satisfaction formation for e-commerce. The study also predicts that the satisfaction formation model of ecommerce will differ between US and Korean consumers due to differences in cultural background. Design/methodology/approach – The study integrates the expectation disconfirmation theory (EDT) and the technology acceptance model (TAM). The hypotheses are examined by analyzing a structural equation model for consumers in the US and Korea. Findings – The results show that the model demonstrates good fit for both groups. For consumers in both countries, when purchasing fashion products on a new e-commerce site, the performance of the site’s usefulness was found to be a crucial variable in their satisfaction and intention to use the site. While there was no significant difference in the multiple group measurement model invariance test, our findings are meaningful because the slight differences in the standard coefficients of the two groups are considered. Originality/value – It is meaningful to apply EDT and the TAM to the daily deal site environment. The influence of related variables can be reconfirmed and new consumer behaviors can be better understood. The research provides fresh insights into consumer behavior that can benefit managers when they make decisions in the e-commerce field.

Introduction

As the market for smart phones and tablets for mobile entertainment and reading are expanding, a new e-commerce platform is emerging. Connected with social networks and social relationships, this platform is called “social e-commerce.” Social e-commerce differs from existing online shopping in two ways. First, communication among consumers is different since social e-commerce is a consumer participating market where consumers directly use the network effect on, participate in, and create their own markets. It integrates with social networking services (SNSs) to increase consumer participation. Second, most of the prominent social e-commerce business models today are focused on radical price discounts of more than 50% for a limited time. The most common social e-commerce platform is group-buying sites with a daily deal service, as characterized by Groupon. This is also referred to as social shopping because consumers form relationships in the process of sharing shopping information and make purchases based on public opinions formed by those relationships. According to recent surveys, the total transaction value of the online group-buying market in the US reached US$19.7 billion in 2011 and revenue was expected to reach US$41.7 billion in 2015 (Sina, 2011). Online group buying websites are also experiencing rapid growth in Asia (CNN, 2010). In Korea, in 2010, US$45 million was transacted in the market, but by 2011, the market was estimated at US$724 million. Moreover, the market was projected to reach US$4.5 billion in 2014 (Park, 2014). Recently, Coupang, one of the group buying sites in Korea, was listed among the world’s 50 smartest companies for 2016 as selected by the MIT Technology Review, a magazine published by MIT (Massachusetts Institute of Technology) (MIT Technology Review, 2016).