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A Conceptual Framework forOnline Shopping Behavior:
Trust and National Culture
Felix B TanAuckland University of Technology
Cathy Urquhart and Sarah YanThe University of Auckland
Agenda
MotivationOnline Shopping BehaviorTheory of Planned BehaviorLimitations in the Context of OSBTheoretical FrameworkPropositionsDiscussion & Conclusion
MotivationWhy 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 LensesTechnology Acceptance ModelInnovation Diffusion TheoryTheory of Planned Behaviour
MotivationLimited understanding of
Impact of trust toward online storesInfluence of cultural differences
PurposeDevelop a comprehensive theoretical frameworkIntegrates trust and culture within OSB contextTheory of Planned Behavior
ContributionAn integrated modelActual transaction vs intention to transact
Online Shopping BehaviorInvestigate OSB by exploring specific area of Internet shopping.
Information search; Price search
Explore predictors of OSBAvailability, cost issues, positive experiencesEnjoyment, social and perceptual dimensions
Confusion remainsCommunity-building infrastructure vs usabilityTime-saving vs time spent on the Internet
Online Shopping BehaviorTrust influences OSB
Kimery et al., 2002; Pavlou, 2002Gefen, 2003; Heijden et al., 2003Not integrated into TPB
Culture affects OSBFew and conflictingSelective dimensions studiedKacen & Lee, 2002; Pavlou, 2002
Integrating Trust & CultureWithin the OSB context and TPB
Theory of Planned BehaviorThe reasons of choosing TPB
TPB easier to operationalise than TRATPB explains more variance than TAM & TRAConstruct “Perceived Behavioral Control” is extremely useful in uncertain online environmentTPB stronger predictive power than TRATPB has received substantial empirical support in IS field
Theory of Planned Behavior
TPB in IS Research
Pure TPB StudiesPC adoption (Venkatesh & Brown, 2001)Web-based EC adoption (Riemenschneider & McKinney, 2002)
TPB & Other Theories/ConstructsTrust & eGovt adoption (Warkentin et al, 2002)DOI & virtual banking adoption (Liao et al, 1999)
Moderators in TPBGender (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 FrameworkAdd Construct “Trust”
Subjective Norms
Attitude
Intention to
Transact
Actual
Transaction
Perceived Behavioral
Control
Trust
Theoretical Framework
Social Influence
Societal Norm
Subjective Norms
Subjective
Norms
Attitude
Trust
Intention to
Transact
Actual
Transaction
Perceived Behavioral
Control
Divide Subjective Norms into Societal Norm and Social Influence
Include five dimensions of national culture as moderators
High Vs Low Power DistanceIndividualism / CollectivismLong- / Short- Term OrientationUncertainty AvoidanceMasculinity/Femininity
Theoretical Framework
Masculinity vs. Femininity
P8
Subjective Norms
Cultural Effects
Attitude
Social Influence Intention to Transact
Actual Transaction
Societal Norm
Perceived Behavioral
Control
High vs. Low Power Distance
Collectivism vs. Individualism
Long vs. Short Term
Orientation
P2 P3 P4 P5
P1
P6
DIRECT EFFECT:
MODERATING EFFECT:
P7
Trust
Uncertainty Avoidance
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 & ConclusionDimensions of
national cultureModerating effects Propositions References
Long-/short-term orientation
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.
Hofstede (2001), Pavlou et al. (2002), Chen et al. (2001)
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.
Masculinity/femininity
Attitude – intention to transact
The positive relationship between attitude and intention to transact is stronger in masculine cultures than in feminine cultures.
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 & ConclusionIndividualism/
collectivismAttitude - 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)
Thank You
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