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

Suggestions / Questions?