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Online shoppers’ perceptions of ers’ ethics, cultural orientation, and An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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The higher consumers perceive positive CPEOR.The higher consumers perceive positive CPEOR. Findings Multinational enterprises can create successful marketing strategies.Multinational enterprises can create successful marketing strategies. Practical implications This study examines both individualism and collectivism at the individual level.This study examines both individualism and collectivism at the individual level. Originality/valueAbstract

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Page 1: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

An exploratory studyin Taiwan

MA480207 Chu-Yi, Chen

Page 2: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in 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

Page 3: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

• 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

Page 4: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

OutlineI. Introduction

II. Literature Review

III. Methodology

IV. Data Analysis

V. Results

Page 5: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

I. IntroductionPrivacy

Security

Non-deception

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

their willingness to engage in e-commerce transactions.

Page 6: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

II. Literature Review-CPEORPrivacy

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

Page 7: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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.

Page 8: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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.

Page 9: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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.

Page 10: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 11: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 12: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

II. Literature Review-Consumer loyalty

Individualism

Collectivism

Page 13: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 14: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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.

Page 15: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 16: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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.

Page 17: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 18: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 19: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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.”

Page 20: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 21: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 22: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

IV. Data Analysis-Factor analysis and reliability analysis

Page 23: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

IV. Data Analysis-Factor analysis and reliability analysis

Page 24: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 25: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 26: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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

Page 27: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

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%

Page 28: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

V. Results-Correlations

Page 29: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

V. Results-Multiple regression analysis

Page 30: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

V. Results-Multiple regression analysis

Page 31: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

V. Results-Multiple regression analysis

Page 32: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

VI. Conclusion-Theoretical application

To measuring consumers' ethical perceptions.

1To examine personal awareness

2To bridge the existing gap

3

Page 33: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

VI. Conclusion-Managerial implications

Honesty of products and services

Promote favorable consumer attitudes

Increase loyalty intention

Page 34: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

VI. Conclusion-LimitationsGeneralizability is limited.

Establish unidimensionality for each factor

Only a single scale

Page 35: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen

VI. Conclusion-Future researchEngage in cross-cultural

CPEOR be a mediating or moderating variable

Add more items from various scales

Page 36: Online shoppers’ perceptions of e-retailers’ ethics, cultural orientation, and loyalty An exploratory study in Taiwan MA480207 Chu-Yi, Chen