1. 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

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

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

13. Include five dimensions of national culture as moderators High Vs Low Power Distance Individualism / Collectivism Long- / Short- Term Orientation Uncertainty Avoidance Masculinity/Femininity Theoretical Framework

14. 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

15. 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.

16. 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.

17. 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.

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 Dimensions of national culture Moderating effectsPropositionsReferences 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/femin inity 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)

20. Discussion & Conclusion Individualism/col lectivism Attitude - 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)

21. Thank You Suggestions / Questions?