Foreign E-Commerce Transactions

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Master Thesis - Andreas Kurtz

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Foreign E-Commerce Transactions

  1. 1. Universiteit Maastricht Faculty of Economics and Business Administration Maastricht, 30 th August 2005 Kurtz, Andreas i980475   supervised by Drs. Toñita Perea y Monsuwé Foreign E-Commerce Transactions Why consumers hesitate to shop around the globe online?
  2. 2. introduction academic context - hypotheses development research design analysis and results discussion and conclusion additional questions - foreign e-commerce framework
  3. 3. introduction <ul><li>Internet is growing rapidly </li></ul><ul><li>e-commerce sales are soaring </li></ul><ul><li>EU – online sales 7% from foreign e-commerce transactions (FET) </li></ul>(BCG, 2003)
  4. 4. internet sales in various markets (OECD, 2002)
  5. 5. problem statement Why do consumers hesitate to shop around the globe online? <ul><li>impact of attitude </li></ul><ul><li>situational factors and import tariffs </li></ul><ul><li>impact of trust </li></ul><ul><li>significance of culture </li></ul>
  6. 6. intention and contribution <ul><li>provide more insight in FET </li></ul><ul><li>develop multicultural framework </li></ul><ul><li>FET applicability for existing e-commerce literature </li></ul><ul><li>e.g. Technology Acceptance Model (TAM) by Davis (1989) </li></ul><ul><li> & TAM extensions by Perea y Monsuwé et al. (2004) </li></ul><ul><li>& Jarvenpaa et al. (1999) </li></ul>
  7. 7. approach <ul><li>review existing literature on e-commerce </li></ul><ul><li>develop adequate hypotheses </li></ul><ul><li>empirical research across three countries </li></ul><ul><li>- the Netherlands, South Korea, Germany </li></ul>
  8. 8. TAM (Davis, 1989) Perea y Monsuwé (2004) framework intention to purchase a product on a foreign website import tariffs <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability </li></ul><ul><li>perceived integrity </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul>
  9. 9. intention to purchase a product on a foreign website attitude towards purchasing a product on a foreign website Hypothesis 01: The attitude towards purchasing a product on a foreign website has a direct positive effect on the intention to purchase a product on a foreign website
  10. 10. intention to purchase a product on a foreign website import tariffs <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability </li></ul><ul><li>perceived integrity </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul>
  11. 11. intention to purchase a product on a foreign website <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul>attitude towards purchasing a product on a foreign website Hypotheses 0 2 - 05 : The situatuational factors have an impact on the realtionship the attitude and i ntention to purchase a product on a foreign website .
  12. 12. intention to purchase a product on a foreign website <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul>attitude towards purchasing a product on a foreign website Hypothes e s 0 2 - 05 : The situatuational factors have an impact on the realtionship the attitude and i ntention to purchase a product on a foreign website . attenuating effect
  13. 13. intention to purchase a product on a foreign website <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul>attitude towards purchasing a product on a foreign website Hypothes e s 0 2 - 05 : The situatuational factors have an impact on the realtionship the attitude and i ntention to purchase a product on a foreign website .
  14. 14. intention to purchase a product on a foreign website <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul>attitude towards purchasing a product on a foreign website Hypotheses 0 2 - 05 : The situatuational factors have an impact on the realtionship the attitude and i ntention to purchase a product on a foreign website .
  15. 15. intention to purchase a product on a foreign website <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul>attitude towards purchasing a product on a foreign website Hypothesis 0 2 - 05 : The situatuational factors have an impact on the realtionship the attitude and i ntention to purchase a product on a foreign website .
  16. 16. intention to purchase a product on a foreign website import tariffs <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability </li></ul><ul><li>perceived integrity </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul>
  17. 17. intention to purchase a product on a foreign website import tariffs attitude towards purchasing a product on a foreign website Hypothes i s 06 : Import tariffs and the corresponding efforts by the consumer have a strengthening impact on the realtionship the attitude and i ntention to purchase a product on a foreign website .
  18. 18. intention to purchase a product on a foreign website import tariffs <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability </li></ul><ul><li>perceived integrity </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul>
  19. 19. intention to purchase a product on a foreign website <ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability </li></ul><ul><li>perceived integrity </li></ul>attitude towards purchasing a product on a foreign website Hypothes e s 07 – 08 : The perceived ability and integrity of an Internet merchant have a moderating effect on the realtionship the attitude and i ntention to purchase a product on a foreign website .
  20. 20. intention to purchase a product on a foreign website <ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability </li></ul><ul><li>perceived integrity </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul>
  21. 21. intention to purchase a product on a foreign website attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul><ul><li>Hofstede‘s dimensions of culture (1984) : </li></ul><ul><li>masculinity </li></ul><ul><li>individualism </li></ul><ul><li>power distance </li></ul><ul><li>uncertainty avoidance </li></ul>status symbols De Mooij (1998) : computer / internet usage
  22. 22. intention to purchase a product on a foreign website attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul><ul><li>Hofstede‘s dimensions of culture (1984) : </li></ul><ul><li>masculinity </li></ul><ul><li>individualism </li></ul><ul><li>power distance </li></ul><ul><li>uncertainty avoidance </li></ul>mas 14 66 39 80 67 18 idv Netherlands Germany South Korea (Hofstede, 1984)
  23. 23. intention to purchase a product on a foreign website attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul>Hypothes e s 09 – 10 : The degrees of masculinity and individualism have a positive effect on the attitude towards purchasing a product from a foreign website
  24. 24. Doney et al. (1998) :
  25. 25. intention to purchase a product on a foreign website <ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability </li></ul><ul><li>perceived integrity </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul>Hypothes e s 11 – 12 : The degrees of masculinity and individualism have an effect on the consumer‘s trust in pruchasing from a foreign website
  26. 26. intention to purchase a product on a foreign website import tariffs <ul><li>situational factors </li></ul><ul><li>need for special items </li></ul><ul><li>geographical distance </li></ul><ul><li>international transportation </li></ul><ul><li>delivery time </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability </li></ul><ul><li>perceived integrity </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism </li></ul><ul><li>masculintiy </li></ul><ul><li>demographics </li></ul>
  27. 27. sampling webproficiency as pre-requisite mailing <ul><li>convenience set </li></ul><ul><li>all senior bachelor students at Soongsil University, Seoul (SSU) </li></ul><ul><li>all bachelor students at FEBA </li></ul>
  28. 29. sampling webproficiency as pre-requisite mailing <ul><li>convenience set </li></ul><ul><li>all senior bachelor students at SSU </li></ul>10-06-2005 – 16-06-2005 51 Dutch / 75 Germans 20-06-2005 – 30-06-2005 55 Koreans <ul><li>all bachelor students at FEBA </li></ul>
  29. 30. questionnaire 41 questions on four pages three languages
  30. 31. components attitude and intention (Dabholkar, 1994) four-item scale two-item scale seven-point Likert scales (Chang & Cheung, 1994) attitude intention (Dabholkar, 1994)
  31. 32. components moderators – situational factors (McQuarrie & Munson, 1992) ten bipolar items need for special items geographical distance international transportation delivery time three self-made statements each one statement
  32. 33. components (Cheung & Lee, 2001) three statements perceived ability perceived integrity (Cheung & Lee, 2001) (Moorman et al., 1993) three statements (Lee & Turban, 2001) moderator – trust
  33. 34. components demographic details moderator – import tariffs consumer traits three self-made statements
  34. 36. descriptive statistics demographics nationality: 51 Dutch 75 German 55 Korean 28.2 % 41.4 % 30.4 % female male 18 38 31 33 37 24
  35. 37. descriptive statistics demographics age: < 20 20 – 34 25 – 34 35 – 49 50 – 65 5.5 % 44.8 % 44.8 % 4.4 % 0.6 % 10 81 81 08 01
  36. 38. descriptive statistics demographics education: secondary high-school vocational advanced university other 3.3 % 19.9 % 13.3 % 3.9 % 59.1 % 0.6 % 06 36 24 07 107 01
  37. 39. descriptive statistics demographics income: < € 15,000 15 – 20 20 – 35 35 – 50 50 – 65 > € 65,000 72.4 % 10.5 % 7.2 % 3.3 % 5.5 % 1.1 % 131 19 13 06 10 02
  38. 40. descriptive statistics previous purchases 51 Dutch 75 German 55 Korean 29/22 35/40 15/40 yes/no 79/102 foreign transactions: domestic transactions: 91.7 % yes 8.3 % no 43.6%
  39. 41. <ul><ul><li>attitude </li></ul></ul><ul><ul><li>intention </li></ul></ul>reliability analysis <ul><ul><li>perceived ability </li></ul></ul><ul><ul><li>perceived integrity </li></ul></ul><ul><ul><li>import tariffs </li></ul></ul><ul><ul><li>need for special items </li></ul></ul><ul><ul><li>geographical distance </li></ul></ul><ul><ul><li>international transportation </li></ul></ul><ul><ul><li>delivery time </li></ul></ul><ul><ul><li>0.9201 </li></ul></ul><ul><ul><li>0.8577 </li></ul></ul><ul><ul><li>0.8253 </li></ul></ul><ul><ul><li>0.5758 </li></ul></ul><ul><ul><li>0.6860 </li></ul></ul><ul><ul><li>0.3346 </li></ul></ul><ul><ul><li>0.8546 </li></ul></ul><ul><ul><li>0.8480 </li></ul></ul><ul><ul><li>0.4032 </li></ul></ul><ul><ul><li>variable Cronbach‘s α </li></ul></ul>Exceeding 15min
  40. 42. <ul><ul><li>attitude </li></ul></ul><ul><ul><li>intention </li></ul></ul>reliability analysis <ul><ul><li>perceived ability </li></ul></ul><ul><ul><li>perceived integrity </li></ul></ul><ul><ul><li>import tariffs </li></ul></ul><ul><ul><li>need for special items </li></ul></ul><ul><ul><li>geographical distance </li></ul></ul><ul><ul><li>international transportation </li></ul></ul><ul><ul><li>delivery time </li></ul></ul><ul><ul><li>0.9201 </li></ul></ul><ul><ul><li>0.8577 </li></ul></ul><ul><ul><li>0.8253 </li></ul></ul><ul><ul><li>0.5758 </li></ul></ul><ul><ul><li>0.6860 </li></ul></ul><ul><ul><li>0.3346 </li></ul></ul><ul><ul><li>0.8546 </li></ul></ul><ul><ul><li>0.8480 </li></ul></ul><ul><ul><li>0.4032 </li></ul></ul><ul><ul><li>variable Cronbach‘s α </li></ul></ul>
  41. 43. analysis of variance national differences and attitude mas 14 66 39 80 67 18 idv Netherlands Germany South Korea (Hofstede, 1984) Netherlands Germany South Korea 4.455 4.446 4.097 mean H09 & H10 not supported F = 4.319 p = .015
  42. 44. analysis of variance national differences and trust F = .392 p = .626 F = 2.756 p = .066 perceived ability perceived integrity H11 = no support H12 = no support Netherlands Germany South Korea 5.229 4.446 4.097 4.471 4.138 3.958 ability integrity
  43. 45. analysis of variance previous purchases F = 7.380 p = .05 F = 15.039 F = 48.336 intention attitude intention p = .05 e-commerce experience FET experience
  44. 46. (moderated) regression analsyis attitude and intention t = 8.023 p = .000 H01 = supported
  45. 47. (moderated) regression analsyis situational factors t = -2.195 p = .03 H02 = supported need for special items β = - .231 t = 2.963 p = .003 H03 = no support geographical distance β = .269 <ul><ul><li>α = </li></ul></ul>.5758 <ul><ul><li>α = </li></ul></ul>.8253
  46. 48. (moderated) regression analsyis situational factors t = 2.631 p = .009 H04 = no support international transportation β = .185 H05 = no support delivery time <ul><ul><li>α = </li></ul></ul>0.3346 <ul><ul><li>α = </li></ul></ul>0.6860
  47. 49. (moderated) regression analsyis import tariffs t = - .055 p = .635 H06 = no support β = - .475 <ul><ul><li>α = </li></ul></ul>0.4032
  48. 50. (moderated) regression analsyis trust t = 1.649 p = .233 H07 = no support perceived ability H08 = supported perceived integrity <ul><ul><li>α = </li></ul></ul><ul><ul><li>α = </li></ul></ul>0.8546 0.8480 t = -2.248 p = .026 β = .216 β = - .233
  49. 51. intention to purchase a product on a foreign website import tariffs (-) <ul><li>situational factors </li></ul><ul><li>need for special items (+) </li></ul><ul><li>geographical distance (~) </li></ul><ul><li>international transportation (~) </li></ul><ul><li>delivery time (-) </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability (-) </li></ul><ul><li>perceived integrity (+) </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism (-) </li></ul><ul><li>masculintiy (-) </li></ul>(+)
  50. 52. intention to purchase a product on a foreign website import tariffs (-) <ul><li>situational factors </li></ul><ul><li>need for special items (+) </li></ul><ul><li>geographical distance (~) </li></ul><ul><li>international transportation (~) </li></ul><ul><li>delivery time (-) </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability (-) </li></ul><ul><li>perceived integrity (+) </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism (-) </li></ul><ul><li>masculintiy (-) </li></ul>(+)
  51. 53. intention to purchase a product on a foreign website import tariffs (-) <ul><li>situational factors </li></ul><ul><li>need for special items (+) </li></ul><ul><li>geographical distance (~) </li></ul><ul><li>international transportation (~) </li></ul><ul><li>delivery time (-) </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability (-) </li></ul><ul><li>perceived integrity (+) </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism (-) </li></ul><ul><li>masculintiy (-) </li></ul>(+)
  52. 54. intention to purchase a product on a foreign website import tariffs (-) <ul><li>situational factors </li></ul><ul><li>need for special items (+) </li></ul><ul><li>geographical distance (~) </li></ul><ul><li>international transportation (~) </li></ul><ul><li>delivery time (-) </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability (-) </li></ul><ul><li>perceived integrity (+) </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism (-) </li></ul><ul><li>masculintiy (-) </li></ul>(+)
  53. 55. intention to purchase a product on a foreign website import tariffs (-) <ul><li>situational factors </li></ul><ul><li>need for special items (+) </li></ul><ul><li>geographical distance (~) </li></ul><ul><li>international transportation (~) </li></ul><ul><li>delivery time (-) </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability (-) </li></ul><ul><li>perceived integrity (+) </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism (-) </li></ul><ul><li>masculintiy (-) </li></ul>(+)
  54. 56. intention to purchase a product on a foreign website import tariffs (-) <ul><li>situational factors </li></ul><ul><li>need for special items (+) </li></ul><ul><li>geographical distance (~) </li></ul><ul><li>international transportation (~) </li></ul><ul><li>delivery time (-) </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability (-) </li></ul><ul><li>perceived integrity (+) </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism (-) </li></ul><ul><li>masculintiy (-) </li></ul>(+)
  55. 57. intention to purchase a product on a foreign website import tariffs (-) <ul><li>situational factors </li></ul><ul><li>need for special items (+) </li></ul><ul><li>geographical distance (~) </li></ul><ul><li>international transportation (~) </li></ul><ul><li>delivery time (-) </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability (-) </li></ul><ul><li>perceived integrity (+) </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism (-) </li></ul><ul><li>masculintiy (-) </li></ul>(+)
  56. 58. intention to purchase a product on a foreign website import tariffs (-) <ul><li>situational factors </li></ul><ul><li>need for special items (+) </li></ul><ul><li>geographical distance (~) </li></ul><ul><li>international transportation (~) </li></ul><ul><li>delivery time (-) </li></ul><ul><li>trust in foreign Internet merchant </li></ul><ul><li>perceived ability (-) </li></ul><ul><li>perceived integrity (+) </li></ul>attitude towards purchasing a product on a foreign website <ul><li>culture </li></ul><ul><li>individualism (-) </li></ul><ul><li>masculintiy (-) </li></ul>(+)
  57. 59. <ul><li>the need for special items is key </li></ul><ul><li>domestic e-commerce experience </li></ul><ul><li>attitude goes a long way </li></ul><ul><li>trust is imperative </li></ul><ul><li>do not neglect culture </li></ul>final conclusion
  58. 60. implications <ul><li>focus on demand for special items </li></ul><ul><li>address issues of international transportation </li></ul><ul><li>attitude – influence determinants </li></ul><ul><li>create trust </li></ul>
  59. 61. limitations <ul><li>various issues of foreign e-commerce </li></ul><ul><li>e.g. language or payment </li></ul><ul><li>bigger sample </li></ul><ul><li>specific evaluation and measurement of culture </li></ul><ul><li>investigation of determinants of trust and attitude </li></ul><ul><li>products / services </li></ul>
  60. 62. q & a

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