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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