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A Conceptual Framework for Online Shopping Behavior: Trust and National Culture

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

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A Conceptual Framework for Online Shopping Behavior: Trust and National Culture

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  1. A Conceptual Framework forOnline Shopping Behavior:Trust and National Culture Felix B TanAuckland University of Technology Cathy Urquhart and Sarah YanThe University of Auckland

  2. Agenda • Motivation • Online Shopping Behavior • Theory of Planned Behavior • Limitations in the Context of OSB • Theoretical Framework • Propositions • Discussion & Conclusion

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. Theory of Planned Behavior

  9. 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)

  10. 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.

  11. Perceived Behavioral Control Trust Intention to Transact Actual Transaction Attitude Subjective Norms Theoretical Framework • Add Construct “Trust”

  12. Perceived Behavioral Control Trust Intention to Transact Actual Transaction Attitude Social Influence Subjective Norms Societal Norm Subjective Norms Theoretical Framework • Divide Subjective Norms into Societal Norm and Social Influence

  13. 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

  14. Perceived Behavioral Control Attitude Social Influence Intention to Transact P1 Actual Transaction Societal Norm Subjective Norms DIRECT EFFECT: MODERATING EFFECT: Trust P8 P7 P6 P5 P4 P3 P2 Uncertainty Avoidance High vs. Low Power Distance Collectivism vs. Individualism Masculinity vs. Femininity Long vs. Short Term Orientation Cultural Effects

  15. Propositions • P1: Intention to transactpositively influencesactual transaction. • P2: The positive relationship betweenperceived behavioral controlandactual transactionis stronger among people fromlong-term orientedcultures compared to people fromshort-term orientedcultures. • P3: The positive relationship betweenperceived behavioral control andintention to transactis stronger among people fromlong-term orientedcultures compared to people fromshort-term orientedcultures.

  16. Propositions • P4: The positive relationship betweenattitudeand intention to transactis stronger inmasculinecultures than infemininecultures. • P5: The positive relationship betweenattitudeand intention to transactis stronger inindividualistcultures than in collectivistcultures. • P6: The positive relationship betweensocial influenceandintention to transactis stronger incollectivistcultures than inindividualistcultures.

  17. Propositions • P7: The positive relationship betweensocietal normandintention to transactis stronger among people fromhigh power distancecultures compared to people fromlow power distancecultures. • P8: The positive relationship betweentrustandintention to transactis stronger among people fromhigh uncertainty avoidancecultures compared to people fromlow uncertainty avoidancecultures.

  18. 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.

  19. Discussion & Conclusion

  20. Discussion & Conclusion

  21. Thank You Suggestions / Questions?

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