online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty an...

Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty

An exploratory studyin Taiwan

MA480207 Chu-Yi, Chen

Abstract

• examine the impact of cultural orientation on CPEOR.

• understand the influence of CPEOR on e-loyalty intention.

Purpose

• Román’s CPEOR scale and Triandis’ individuality and collectivism typology.

• 949 respondents is collected via an online survey.

Design/methodology/approach

• The higher consumers perceive positive CPEOR.

Findings

• Multinational enterprises can create successful marketing strategies.

Practical implications

• This study examines both individualism and collectivism at the individual level.

Originality/value

Abstract

OutlineI. Introduction

II. Literature Review

III. Methodology

IV. Data Analysis

V. Results

I. IntroductionPrivacy

Security

Non-deception

Fulfillment/ Reliability Consumer’s perceptions toward e-retailers may limit

their willingness to engage in e-commerce transactions.

II. Literature Review-CPEORPrivacy

The security of payments made by credit card and the privacy of shared information.

Privacy

Security

II. Literature Review-CPEOR

Refers to the uncertainty associated with providing personal information on a web site and the risk of such information being exposed.

Privacy

Security

Non-deception

II. Literature Review-CPEOR

E-retailer will not use deceptive or manipulative practices to persuade consumers to purchase web site offerings.

Privacy

Security

Non-deception

Fulfillment/ Reliability

II. Literature Review-CPEOR

It also covers relevant service features regarding prompting order confirmation and tracking the delivery process.

IIndividualist

Autonomy

emotional independence

individual initiative

the right to privacy

the search of pleasure

financial security

specific friendship

universalism

II. Literature Review-Vertical and horizontal individualism and collectivism

WeCollectivist

collective identity

emotional dependence

group solidarity

sharing

duties and obligations

stable friendships

group decision making

particularism

II. Literature Review-Vertical and horizontal individualism and collectivism

II. Literature Review-Consumer loyalty

Individualism

Collectivism

Vertical individualism tends to be high in autonomy

and aggression (Triandis and Gelfand, 1998a).

Consumers with a vertical individualism tendency will

be less likely to tolerate unethical behavior in an e-

retailer if the behavior jeopardizes their welfare.

III. Methodology Individualism and CPEOR

H1. Consumers exhibiting higher levels of vertical individualism are more likely to exhibit lower CPEOR.H2. Consumers exhibiting higher levels of horizontal individualism are more likely to exhibit higher CPEOR.

In collectivist cultures, a person tends to perceive the

self as part of an interdependent relationship with

others (Markus and Kitayama, 1991).

These consumers will exhibit greater tolerance

toward unethical retailer behaviors.

III. MethodologyCollectivism and CPEOR

H3. Consumers exhibiting higher levels of vertical collectivism are more likely to exhibit higher CPEOR.H4. Consumers exhibiting higher levels of horizontal collectivism are more likely to exhibit higher CPEOR.

When consumers perceive that the risks pertaining to security, privacy, fraud, or reliability are low, thereby increasing their desire to repurchase from the same e-retailer (Roma´n, 2010; Yang et al. , 2009).

E-shoppers will be loyal when they perceive an e-retailer as ethical (Arjoon and Rambocas, 2011; Limbu et al. , 2011).

III. Methodology CPEOR and loyalty intention

H5. Consumers with higher CPEOR tend to exhibit higher loyalty intention toward.

IV. Data Analysis- Measures All survey constructs employed existing multi-item scales.

Five-point Likert-type scales ranging from

"1 =strongly disagree" to "5 = strongly agree.“

The cultural variables “horizontal and vertical

individualism and collectivism scale.”

Construct Measurement items Cronbach’s

Security

1. The security policy is easy to understand

0.7272.

The site displays the terms and conditions of the onlinetransaction before the purchase has taken place

3. The site appears to offer secure payment methods

4. This site has adequate security features

Privacy

1. The site clearly explains how user information is used

0.6312.Only the personal information necessary for the transactionto be completed needs to be provided

3. Information regarding the privacy policy is clearlypresented

Non-deception

1. The site exaggerates the benefits and characteristics of its offerings

0.7522.This site takes advantage of less experienced consumers to make them purchase

3. This site attempts to persuade you to buy things that you do not need

Fulfillmentreliability

1. The price shown on the site is the actual amount billed

0.5892. You get what you ordered from this site

3. Promises to do something by a certain time, they do it

Construct Measurement items Cronbach’s

IV. Data Analysis-Factor analysis and reliability analysis

IV. Data Analysis-Factor analysis and reliability analysis

IV. Data Analysis-Factor analysis and reliability analysis

Clean four dimension solution

Harman's one-

factor test

13％

Bartlett's test 0.00

Kaiser-Meyer-Olkin0.827

IV. Data Analysis-Participants and procedure

Item Type Frequency %

GenderMale 319 33.60

Female 630 66.40

Age

Under 20 162 17.10

21-30 749 78.90

31-40 38 4.00

Over 41 0 0.00

Gender Male34%Gender

Female66%

1,239

IV. Data Analysis-Participants and procedure

Education

High school graduate or less 24 2.50Some college 22 2.30Bachelor’s degree 665 70.10Master’s degree 230 24.20Doctorate degree 8 0.80

Occupation

Public servants 99 10.43Commerce 114 12.01Industry 53 5.58Farming/fishery 8 0.84Household 13 1.37Students 662 69.76

Average online shopping frequency (per month) Less than 1 262 27.611 322 33.922-3 289 30.454-5 45 4.74Over 6 31 3.27

IV. Data Analysis-Participants and procedure

Less than

128%

134%

2-330%

4-55%

Over 63%

V. Results-Correlations

V. Results-Multiple regression analysis

V. Results-Multiple regression analysis

V. Results-Multiple regression analysis

VI. Conclusion-Theoretical application

To measuring consumers' ethical perceptions.

1To examine personal awareness

2To bridge the existing gap

3

VI. Conclusion-Managerial implications

Honesty of products and services

Promote favorable consumer attitudes

Increase loyalty intention

VI. Conclusion-LimitationsGeneralizability is limited.

Establish unidimensionality for each factor

Only a single scale

VI. Conclusion-Future researchEngage in cross-cultural

CPEOR be a mediating or moderating variable

Add more items from various scales