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Explaining Online Shopping Behavior A Cross

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A Conceptual Framework for
Online Shopping Behavior:
Trust and National Culture
Felix B Tan
Auckland University of Technology
Cathy Urquhart and Sarah Yan
The University of Auckland
Agenda
Motivation
Online Shopping Behavior
Theory of Planned Behavior
Limitations in the Context of OSB
Theoretical Framework
Propositions
Discussion & Conclusion
Motivation
Why Online Shopping Behavior?
Global Trend
• 605.6 million Internet users (Nua, 2002)
• 403.7 million purchased online (Ipsos, 2003)
• 302.8 million to increase activity (Ipsos, 2003)
Theoretical Lenses
Technology Acceptance Model
Innovation Diffusion Theory
Theory of Planned Behaviour
Motivation
Limited understanding of
Impact of trust toward online stores
Influence of cultural differences
Purpose
Develop a comprehensive theoretical framework
Integrates trust and culture within OSB context
Theory of Planned Behavior
Contribution
An integrated model
Actual transaction vs intention to transact
Online Shopping Behavior
Investigate OSB by exploring specific area of
Internet shopping.
Information search; Price search
Explore predictors of OSB
Availability, cost issues, positive experiences
Enjoyment, social and perceptual dimensions
Confusion remains
Community-building infrastructure vs usability
Time-saving vs time spent on the Internet
Online Shopping Behavior
Trust influences OSB
Kimery et al., 2002; Pavlou, 2002
Gefen, 2003; Heijden et al., 2003
Not integrated into TPB
Culture affects OSB
Few and conflicting
Selective dimensions studied
Kacen & Lee, 2002; Pavlou, 2002
Integrating Trust & Culture
Within the OSB context and TPB
Theory of Planned Behavior
The reasons of choosing TPB
TPB easier to operationalise than TRA
TPB explains more variance than TAM & TRA
Construct “Perceived Behavioral Control” is
extremely useful in uncertain online
environment
TPB stronger predictive power than TRA
TPB has received substantial empirical
support in IS field
Theory of Planned Behavior
TPB in IS Research
Pure TPB Studies
PC adoption (Venkatesh & Brown, 2001)
Web-based EC adoption (Riemenschneider &
McKinney, 2002)
TPB & Other Theories/Constructs
Trust & eGovt adoption (Warkentin et al, 2002)
DOI & virtual banking adoption (Liao et al, 1999)
Moderators in TPB
Gender (Venkatesh & Morris, 2000)
Internet experience (George, 2002)
Limitations in the Context of OSB
Need for integrating trust with TPB in the
uncertain online environment.
Need for integrating national culture with
online consumption decision.
Theoretical Framework
Add Construct “Trust”
Perceived
Behavioral
Control
Trust
Attitude
Subjective
Norms
Intention to
Actual
Transact
Transaction
Theoretical Framework
Divide Subjective Norms into Societal Norm and Social Influence
Perceived
Behavioral
Control
Trust
Intention to
Attitude
Social
Influence
Subjective
Norms
Societal
Norm
Subjective Norms
Transact
Actual
Transaction
Theoretical Framework
Include five dimensions of national culture
as moderators
High Vs Low Power Distance
Individualism / Collectivism
Long- / Short- Term Orientation
Uncertainty Avoidance
Masculinity/Femininity
Perceived
Behavioral
Control
Attitude
Social Influence
P1
Intention to
Transact
Actual
Transaction
Societal Norm
Subjective Norms
DIRECT EFFECT:
MODERATING
EFFECT:
Trust
P8
Uncertainty
Avoidance
P7
High vs. Low
Power Distance
P6
P5
Collectivism vs.
Individualism
Cultural Effects
P4
Masculinity vs.
Femininity
P3
P2
Long vs. Short
Term
Orientation
Propositions
P1: Intention to transact positively influences actual
transaction.
P2: The positive relationship between perceived
behavioral control and actual transaction is
stronger among people from long-term oriented
cultures compared to people from short-term oriented
cultures.
P3: The positive relationship between perceived
behavioral control and intention to transact is
stronger among people from long-term oriented
cultures compared to people from short-term oriented
cultures.
Propositions
P4: The positive relationship between attitude
and intention to transact is stronger in
masculine cultures than in feminine cultures.
P5: The positive relationship between attitude
and intention to transact is stronger in
individualist cultures than in collectivist cultures.
P6: The positive relationship between social
influence and intention to transact is stronger
in collectivist cultures than in individualist
cultures.
Propositions
P7: The positive relationship between societal norm
and intention to transact is stronger among people
from high power distance cultures compared to
people from low power distance cultures.
P8: The positive relationship between trust and
intention to transact is stronger among people from
high uncertainty avoidance cultures compared to
people from low uncertainty avoidance cultures.
Discussion & Conclusion
The aim of this paper is to develop a
theoretical framework, which examines the
moderating effect of cultural differences on
the key determinants of online consumer
behavior – trust, attitude, societal norms, and
perceived behavioral control – to better
understand the online consumer behavior.
Discussion & Conclusion
Dimensions of
national culture
Long-/short-term
orientation
Masculinity/femin
inity
Moderating effects
Propositions
Perceived behavioral
control –
intention to
transact
The positive relationship between perceived behavioral
control and intention to transact is stronger
among people from long-term oriented cultures
compared to people from short-term oriented
cultures.
Perceived behavioral
control – actual
transaction
The positive relationship between perceived behavioral
control and actual transaction is stronger among
people from long-term oriented cultures
compared to people from short-term oriented
cultures.
Attitude – intention to
transact
The positive relationship between attitude and intention
to transact is stronger in masculine cultures than
in feminine cultures.
References
Hofstede (2001), Pavlou et al.
(2002), Chen et al. (2001)
Hoffman et al. (1996), Tracy
(1998), Wells et al. (1999),
Rodgers et al. (2000),
Kwak et al. (2002),
Rodgers et al. (1999),
Rodgers et al. (2003)
Discussion & Conclusion
Attitude - intention to
transact
The positive relationship between attitude and
intention to transact is stronger in individualist
cultures than in collectivist cultures.
Triandis (1994), Bagozzi et al.
(2000), Lee (2000), Kacen
et al. (2002)
Social influence –
intention to
transact
The positive relationship between social influence
and intention to transact is stronger in
collectivist cultures than in individualist
cultures.
Lee et al. (1991), Markus et al.
(1998), Chan et al. (2001)
Power distance
Societal norm –
intention to
transact
The positive relationship between societal norm and
intention to transact is stronger among people
from high power distance cultures compared to
people from low power distance cultures.
Hofstede (2001), Doney et al.
(1998)
Uncertainty
Avoidance
Trust - intention to
Transact
The positive relationship between trust and intention
to transact is stronger among people from high
uncertainty avoidance cultures compared to
people from low uncertainty avoidance
cultures.
Hofstede (2001), Warkentin et al.
(2002), Fukuyama (1995)
Individualism/col
lectivism
Thank You
Suggestions / Questions?
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