The document examines consumer online behavior across several countries including the US, China, India, South Korea, Germany, and the UK. It finds that decision-making and online behaviors are influenced by cultural factors. In China, high perceived risk is a primary barrier to online shopping. Chinese consumers worry about product quality, returns, and security of transactions. Cultural norms emphasizing collectivism and uncertainty avoidance also impact risk perceptions. Indian e-commerce is growing rapidly but consumers remain unwilling to purchase expensive products online. Cultural differences must be considered to develop successful cross-cultural online retail strategies.

1. 1
Angela Chang
Ngoc Nguyen
A retail perspective on cross-cultural similarities and differences in
consumer online behavior for US, China, India, South Korea,
Germany and United Kingdom
ABSTRACT
Purpose: This study aims to examine the differences in consumer online behavior for the
following countries: United States, India, China, South Korea, Germany, and United Kingdom.
The study analyzes the regional market differences and the effects they have on online leading
retail companies.
Design/methodology/approach: The data for this research paper were collected through recent
annual market reports of countries from different regions and were each analyzed using basic
marketing principles like marketing segmentation, consumer behaviors, etc. The main sources
used for this research were Journal of Business Research, Journal of Targeting, Measurement &
Analysis for Marketing, International Journal of Retail & Distribution Management, etc. and the
EBSCO database. Data were also collected through previous literature research and consumer
online behaviors were assessed by survey method conducted in different countries. Cultural
differences were measured using Hofstede 6-dimension model.
Findings: The research found that the decision-making process of consumers purchasing online
is influenced by a number of factors such as purchase intention, emotions or risk acceptance.
These factors differ by culture, which explains the differences in consumer online behaviors
across countries. The study also pointed out that online retail strategies need to vary across
regions to address cultural and social differences.

2. 2
Originality/value: This paper collects all necessary data in multiple methods, allowing the
comparison of online consumers from different countries across global regions. This research
provides great insights into online retail markets of each regional country.
Keywords: Online retail, consumer behavior, online marketing, cross-cultural, culture
Paper type: Literature Review

3. 3
I. Introduction
In this age of technology, everyone owns a laptop or a mobile device and most often
shops online on Amazon or Ebay. Consumers can get anything and everything they want online:
clothing, shoes, books, cosmetics, and even grocery. Online shopping trend is on the rise because
people enjoy the convenience that the experience brings. According to eMarketer, worldwide e-
commerce sales in 2014 were up by 20% from 2013, with the expected sales by 2018 to be over
$2.3 trillion (Cauley, 2015).
Online retailing has become a popular alternative distribution channel and experienced
significant growth in recent years (Khare, Khare, & Singh, 2012). E-commerce certainly is the
new hot market for companies to invest into; however, with varying profiles of consumers in
different regions of the world, it is crucial for sales managers to understand consumers’ online
behaviors as well as factors that may influence those behaviors in order to create business
strategies that will bring success to online retailing sector.
Earlier research has pointed out multiple factors that have influence on online shopping
behaviors. Those include social factors such as gender, age, beliefs, as well as technology-related
factors: Website features, information availability, convenience (Khare et al. 2012). Those
factors then varies according to cultural differences among consumers in different countries and
regions. Previous research shows that culture plays an important role in forming attitudes of
consumers towards online shopping (Sahney, Shrivastava, & Bhimalingam, 2008).
Retail managers, by gaining an understanding of consumers’ online behaviors and
examining the relationship between those behaviors, social factors and culture of a country, can
use the knowledge to their advantage and develop successful online retail strategies locally and
internationally.

4. 4
II China
E-commerce in China was launched back in 1998 by Jack Ma and his partners with a
business to business (B2B) online platform called Ailbaba.com (Clemes, Gan, & Zhang, 2014).
EBay was the first Western multinational to enter the Chinese e-commerce market in 2003,
followed by Amazon. Furthermore, 2003 was a milestone for Chinese e-commerce with the
introduction of Alipay, Alibaba’s version of PayPal that adds security to online payments
(Clemes et al, 2014). According to Internet World Stats in 2010, China is the world’s largest
Internet market. The estimated time Chinese spend on the Internet each day is 1 billion hours,
more than double the daily time spent by United States consumers (Clemes et al, 2014). At the
end of 2010, Internet users in China reached 420 million, a 9.36% increase from the end of 2009
and the number of users is predicted to increase during the next decade (Clemes et al, 2014).
Despite the growth in Internet users, there were only 160 million online shoppers in China at the
end of 2010 (Clemes et al, 2014). Currently, consumer-to-consumer marketing (C2C) is the
largest segment in the Chinese e-commerce industry while business-to-consumer marketing
(B2C) is growing dramatically (Clemes et al, 2014). Comparing to software and DVDs as top
sellers back in the beginning of Chinese e-commerce, clothing, cosmetics, books and airline
tickets are becoming top sellers today. Chinese traditional retailers are paying increasingly more
attention to online transactions as China’s e-commerce activities reached 523.1 billion RMB in
2010 (Clemes et al, 2014). Many traditional retailers are developing e-commerce platforms that
are driving B2C online retailing market growth and attracting more consumer interest in
purchasing products online (Clemes et al, 2014).
In order to help organizations investing in B2C online shopping in better understanding
the factors that affect Chinese consumers′ online buying behavior, a self-administered

5. 5
questionnaire was used to gather information from 435 respondents in Beijing, China (Clemes et
al, 2014).
The empirical analysis identifies and ranks seven important decision factors:
 perceived risk
 consumer resources
 service quality
 subjective norms
 product variety
 convenience
 website factors
All of these decision factors impact on Chinese consumers’ adoption of online shopping
(Clemes et al, 2014). This study indicates that perceived risk has the strongest influence on the
decisions of consumers to adopt online shopping (Clemes et al, 2014). According to Tong’s
technology acceptance model (TAM) in online shopping across the USA and China, the
perceived risks associated with online shopping consistently had a negative impact on consumer
future purchase intentions in both US and Chinese samples. This confirms that consumers’ risk
perception is a primary obstacle to online commerce’s future growth (Tong, 2010). Therefore,
online retailers should seek ways to minimize the risks that consumers feel when making internet
purchases (Tong, 2010). A further investigation of the present study’s findings reveals that
internet shoppers worry that they will have a hard time returning or exchanging a product bought
online if it fails to meet their expectations or needs (Tong, 2010). In addition, they are also
concerned about product quality and e-retailers’ full refund policy (Tong, 2010). Internet
retailers can address these concerns by ensuring that consumers always receive the merchandise

6. 6
they expect to receive, and making it easy to return or exchange an item if they are unsatisfied
(Tong, 2010). The mean comparison test indicated that the perceived risks of internet shopping
were significantly higher in China than in the USA (Tong, 2010). This means that fewer Chinese
tend to trust e-commerce or that more Chinese perceive high risk in internet shopping (Tong,
2010). Such a difference may be a result of the cultural differences between the two countries
(Tong, 2010). In contrast to the USA, China is a society with strong uncertainty avoidance
according to Hofstede’s model (Tong, 2010). A cultural difference in uncertainty avoidance,
which also means a variation in relative emphasis on risk of failure, might also result in a certain
level of difference in the perception of risk (Tong, 2010). Therefore, it is expected that people
from a high uncertainty avoidance culture (like China) would perceive higher levels of perceived
risk for online shopping than those from a low uncertainty avoidance culture (like the USA)
(Tong, 2010). The perceived risk of online shopping is not just a cultural matter (Tong, 2010).
Chinese consumers’ risk perceptions regarding B2C online shopping also relate to the other
factors like privacy and security of personal information, security of online transactions, and
product risk (Clemes et al, 2014). Because China lacks network ID authentication and online
transaction credit system, credit, security and privacy become the spotlight of online shopping
(Liu, He, Gao, & Xie, 2008). China has a less secure e-commerce environment than the USA
(Tong, 2010). The country remains far behind the USA in terms of a secure transaction and
payment system, effective government regulations, and ethical business practices in e-commerce
(Tong, 2010). These weaknesses engender Chinese internet users’ distrust in online transactions
(Tong, 2010). Therefore, it is important for online retailers to create a safe online shopping
environment, provide convenient and safe payment methods, protect customers’ privacy and

7. 7
guarantee financial security (Liu et al, 2008). Various risk-reducing strategies should to be
developed by online marketers and retailers to mitigate these risk factors (Clemes et al, 2014).
Consumer resources, including the accessibility to personal computers and the Internet,
knowledge of computers and Internet use, and the knowledge of how to make a purchase online
also have a strong influence on consumers’ decisions to shop online (Clemes et al, 2014).
Moreover, the results of this study illustrate that company employees who are well educated are
more likely to shop online which attributed to well educate consumers having computer and
Internet skills (Clemes et al, 2014). Likewise, older consumers are less likely to shop online due
to low Internet experience and risk concerns (Clemes et al, 2014). Meanwhile, the studies show
that Chinese consumers with high incomes do not tend to shop online (Clemes et al, 2014). This
may be because these consumers prefer to purchase branded products (e.g. Nike, Gucci, and
Apple) from up-market retail stores where they want to physically examine the products and
receive good supporting services as branded products has better quality (Clemes et al, 2014).
Furthermore, one of the research findings also indicates that consumers’ with different
demographic characteristic have different views of online shopping adoption (Clemes et al,
2014). For example, this study shows that the Chinese female consumers are more likely to shop
online since they are more influenced by their friends and family (Clemes et al, 2014).
The study also reveals the service quality provided by B2C online retailers plays a
significant role in influencing consumers’ decisions to shop online as it is a priority and one of
the primary concerns in e-commerce (Clemes et al, 2014). Based on Tong’s TAM test in online
shopping, there is a positive effect of perceived ease of use of online shopping on perception of
the internet’s usefulness as a distribution channel for products in both the US and Chinese
samples. Therefore, internet retailers need to focus on making online purchasing easy in order to

8. 8
encourage repeat purchases by internet shoppers (Tong, 2010). In an online shopping context, the
neglect of consumers’ concerns and inquiries and delayed delivery times cause customer
dissatisfaction (Clemes et al, 2014). Delivery and customer service play a critical role in Chinese
customer satisfaction (Liu et al, 2008). Hence, online retailers need to offer a prompt delivery
and provide quick responses to customers’ concerns, complaints and inquiries, using
communication channels such as e-mail and customer service online chats to provide a more
personalized service (Clemes et al, 2014). Prompt delivery and prompt response to customers’
concerns and inquiries are crucial because order fulfillment still remains a weak spot for Chinese
online retailers (Liu et al, 2008). Especially, in the Chinese context, which can be worse because
in China the logistic infrastructure lags behind other countries and the sense of customer service
is relatively weak (Liu et al, 2008). Because customers lack direct, face-to-face interaction with
service providers, many issues still demand human intervention (Liu et al, 2008). Therefore,
company representatives must be able to answer customer inquiries and solve problems as soon
as they occur (Liu et al, 2008). Detailed and complete product information should also be
provided as products online are intangible (Liu et al, 2008). To know the quality and
functionality of a commodity, customers can only rely on the pictures and descriptions of the
goods on the web pages (Liu et al, 2008). Therefore, to enhance customers’ degree of
satisfaction, B2C websites should provide descriptive and understandable information of the
goods to online shoppers (Liu et al, 2008). By listing the color, functionality, producer, model,
etc. of the products will ensure the customers purchase decisions. Pictures of the products are
essential as it has greater influence on customer’s purchase decision than just listing out the
product description (Liu et al, 2008). From Tong’s TAMS test, the mean comparison test
revealed that the US sample has higher perceived ease of use of online shopping than the

9. 9
Chinese sample. Prior studies suggest that increased user experience with a technology has
positive effect on the mastering of that technology (Tong, 2010). Therefore, this result could be
explained by more experience the US online shoppers had than Chinese online shoppers with
both the internet (online experience: average of seven years for US shoppers versus four years
for Chinese shoppers) and internet shopping (online purchase frequency: average of eight times
per year for US shoppers versus two times per year for Chinese shoppers) (Tong, 2010).
Convenience is also shown to be pertinent in the acceptance of the Internet as a shopping
medium, because consumers no longer need to be concerned about parking, transportation,
crowds, and weather conditions (Clemes et al, 2014). Therefore, online marketers and retailers
need to be innovative with their websites and the product varieties to help the raise consumer
satisfaction. Providing varied types of commodities and preferential price is important as
Chinese are especially sensitive to price and are accustomed to comparing prices (Liu et al,
2008). Many are not willing to spend extra money in shopping (Liu et al, 2008). Moreover, on
the Internet, customers have access to more information which enable their ability to compare
and analyze forces web sites to revalue the products and allows customers to gain material
benefits (Liu et al, 2008). Based on previous studies, online shoppers in the USA and China are
similar with regard to seeking convenience through online shopping, although they might differ
in other aspects of their profile (Tong, 2010). For decades, the Chinese population grew up to
live according to the collective’s needs (Tong, 2010). Today’s Chinese youth, however, attach
more importance than prior generations did to their individual rights and needs (Tong, 2010).
Chinese consumer study also suggested that self-satisfaction is now the number one motivator
among young urban Chinese as they actively seek products or services on the internet that meet
their requirements of individuality (Tong, 2010). They also attach more importance to the

10. 10
convenience of consuming than their parents did, because they think that online shopping is
cheaper and more convenient than the traditional methods of bartering goods and services (Tong,
2010).
Overall, China and USA are culturally and economically very different from one another
(Tong, 2010). In Hofstede’s cultural dimensions, the USA represents individualism, weak
uncertainty avoidance, small power distance, and low long-term orientation, while China
represents collectivism, strong uncertainty avoidance, large power distance, and high long-term
orientation (Tong, 2010). The USA and China are also opposites in Fukuyama’s high versus low-
trust society (Tong, 2010). According to Fukuyama (1995), the USA is a high-trust society,
while China is a low-trust society (Tong, 2010). In addition, although China has become the
country with the most internet users, its people’s use of the internet for e-commerce and online
shopping is far behind that in the USA (Tong, 2010). Second, they are the world’s two leading
countries in terms of the number of internet users and strong growth in online retail sales (Tong,
2010). By understanding what decision factors affects Chinese consumer’s behaviors and the
cultural differences between China and US, online retailers and marketers will be able to further
improve their marketing strategies by accommodating to what Chinese consumer’s needs.
III India
India is embracing the phenomenal growth of e-commerce like the rest of the world.
Companies have been constantly improving technology and increasing the use of online retail
channels. The e-commerce industry in India has come to sell everything to consumers, “from
groceries to bakery products, books and computers” (Jain, S.K., & Jain, M., 2011).

11. 11
A prior research has examined the influence of the characteristics of products offered
online on the consumers’ intention to purchase. The result of the survey conducted for the
research points out that there is a “general unwillingness” among Indian consumers to purchase
expensive products online (Jain, S.K., & Jain, M., 2011). Only about 11 percent of the
consumers who took the survey have expressed interest in purchasing expensive products such as
jewelry, automobiles, or even electronic items (Jain, S.K., & Jain, M., 2011). Also, in the same
survey, many Indian consumers shows a lack of interest in ordering “frequently purchased
products” such as fruits, vegetables, groceries, or flowers (Jain, S.K., & Jain, M., 2011).
However, a large percentage of consumers surveyed seems likely to make purchase towards
services online such as banking, insurance, loans, travel, airplane ticket, or entertainment (Jain,
S.K., & Jain, M., 2011).
Consumers are less interested in buying expensive products online because of high risk
and trust issue. In terms of products such as groceries, fruits and vegetables or flowers,
consumers are not showing much enthusiasm since in a developing country like India, there is a
lack of quality standardization and therefore, consumers are inclined to purchase those products
in stores (Jain, S.K., & Jain, M., 2011). People prefer to test those products themselves in a
traditional shopping setting. Services online, in contrast, do not require tangibility in purchase,
thus attract more consumers’ attention and they are likely to be less expensive and “quite high in
their intangible value proposition” (Jain, S.K., & Jain, M., 2011).
Different categories of services are determined as below, which bases on the level of
involvement, the amount of investment and time spent by consumers to make a purchase
(Sakkthivel, 2006):

12. 12
 High involvement services: such as loans for house, car, or investment of fund. Since
there is a high investment, the behavior process as well as the involvement of the
consumer will be longer than usual (Sakkthivel, 2006).
 Medium involvement services: such as selecting domestic holiday package or booking an
airplane ticket. It involves medium investment and a certain amount of time spent on the
purchase (Sakkthivel, 2006).
 Low involvement services: like purchasing a movie ticket online or booking a table at a
restaurant. Since the investment is low, not too much time and effort will be spent by
consumers (Sakkthivel, 2006).
By categorizing services purchased online into different groups, service providers can
build online consumers’ profile for each of the segment and offer services that are specifically
made for the “target group” (Sakkthivel, 2006). For example, with high involvement services,
providers can build an extra layer of security for consumers to prevent fraud or theft online.
Also, service companies may provide consumers with 24/7 online customer service to answer
questions and to help with problems in order to build a relationship with online customers. Or in
terms of medium involvement services, a cancellation policy can be offered to consumers to
increase the level of convenience. As Indian consumers have a preference of buying services
online, if service providers can meet the needs of each specific type of consumers, the e-
commerce industry will experience great growth in the near future.
IV South Korea
Korean retail market is shifting focus and shoppers are changing their habits (Blecken,
2008). The market was once dominated by domestic brands such as the giants LG or Samsung

13. 13
since “Korea is good at making things” (Blecken, 2008). Because of that, Korean market is
considered to be unappealing for foreign companies seeking to enter and expand in this market
(Blecken, 2008).
However, there is a growing interest in lifestyle trends among Korean consumers which
opens up a lot of new opportunities in areas such as foreign luxury goods or financial services
(Blecken, 2008). Especially foreign fashion brands are attracting lots of attention from Korean
consumers.
Prior research points out that Korean consumers are quickly becoming global consumers,
finding themselves developing the same taste in fashion as those in Western countries,
purchasing and wearing the same brands or styles of clothing (Hye-Jung, Leslie Davis, & Nancy,
2007). Korean consumers, especially young generation, have become fashion-conscious, even
trend-setter and have familiarized themselves with foreign famous brands and products (Hye-
Jung et al, 2007). The purchase of foreign luxury goods significantly increases and the Korean
central bank has indicated that 19.5 percent of household spending on goods was for imported
goods in January 2002 (Kirk, 2002 and Hye-Jung et al, 2007).
Online shopping for foreign luxury goods across border has become a new trend since the
availability of store-based foreign goods cannot meet the needs of Korean consumers (Hye-Jung
et al, 2007). People go directly to the websites of foreign retailers to purchase instead of going to
a store due to its lack of product variety or price differences. In the past, the purchase of products
from online foreign retailers proves to be an extremely challenging task due to the lack of proper
payment methods or poor shipping infrastructure (Hye-Jung et al, 2007). However, online
shopping has improved significantly with retailers providing convenient method of payment,
delivery, and other services related (Hye-Jung et al, 2007). Also, with Korea having one of the

14. 14
most advanced internet infrastructure in the world, the country has a great environment for
online businesses to grow (Hye-Jung et al, 2007).
Korean consumers are motivated by fashion innovativeness and materialism to shop
online across national borders (Hye-Jung et al, 2007). Innovativeness refers to the openness of
consumers towards new ideas or experiences; or in the case of fashion, new brands and styles of
clothing. As fashion innovativeness significantly urges the brand seeking behavior among
consumers and as foreign retailers offer latest fashion goods which are not available in offline
stores, Korean consumers are motivated towards purchasing foreign luxury goods online instead
of relying only on domestics fashion brands (Hye-Jung et al, 2007). Besides fashion
innovativeness, the trend of Korean consumers buying luxury goods on foreign online channels
is also influenced by materialism. As the country itself experiences growth and the income of
people is on the rise, people start pursuing a material lifestyle and they view expensive fashion
items as a symbol of prosperity (Solomon 2004 and Hye-Jung et al, 2007). As people think of
well-known brands as a way to show off to others, they will make purchase to raise appearance
and status, especially searching for items that are rare and not available yet in the country’s
online or offline stores. Therefore, materialism is another crucial motive that encourages
consumers in Korea to shop online for luxury goods across national borders.
Recognize this trend going on among Korean consumers, internet fashion retailers should
pursue marketing and promotional efforts not only online but also offline such as advertisements
in newspapers, fashion magazines or word of mouth (Hye-Jung et al, 2007). People often look
for new products and trends in these offline sources. Taking advantage of these promotion
channels would more likely to help increase online sales. Also, since purchases are made online
and goods are shipped across the border, sales managers should also focus on building a strong

15. 15
logistics infrastructure and a great customer service to provide help to consumers in case of
missing or damaged goods. An increase level of trust and convenience among customers is likely
to boost online traffic and sale revenue.
V Germany
Germany is Europe’s largest and most important market with a population of 82 million
people. According to the website Emarketer, the e-commerce sales of Germany alone was over
63 billion in 2014 (ranked 5th
worldwide) and accounted for 7.3% of total retail sales (higher than
the US- 6.5%). These numbers prove this market is great to invest in and is likely to grow more
in the future.
The online shopping behavior of consumers in Germany is compared to those in the US
to identify significant characteristics and to understand cultural differences’ influence on noted
behavior. Choosing to put Germany and the US into perspective and compare one to another is
because these two countries bear many resemblances in terms of macroeconomics characteristics
as well as a well-developed e-commerce industry; yet they still represent distinct cultures (Smith,
Deitz, Royne, Hansen, Grünhagen, & Witte, 2013).
Prior research has shown that there are many factors affecting consumers’ decision to
shop online instead of going to traditional brick-and-mortar stores. Ghosh (1998) suggests that
convenience, information, customization as well as interaction are the reasons that lead
consumers to online shopping (as cited in To, Liao, & Lin, 2007). Morganosky and Cude (2000)
also propose that convenience and time efficiency are what Internet shopping offers consumers
(as cited in To et al., 2007). All of these factors mentioned above are related to utilitarian

16. 16
motivations (To et al., 2007). Therefore, as suggested by prior research, utilitarian values are the
underlying reasons for people to shop online (To et al., 2007).
An individual’s perceived shopping value is believed to have two dimensions: utilitarian
and hedonic (Sarkar, 2011). Utilitarian buying motives consist of convenience-seeking, quality
and reasonable price seeking (Sarkar, 2011). On the contrary, hedonic buying motives include
“emotional needs of individuals for enjoyable and interesting shopping experiences” (Sarkar,
2011). In other words, utilitarian-motivated consumers view the purchasing as a problem-solving
activity and look forward to maximizing utility by focusing on the benefits of the product
(Sarkar, 2011). Consumers who looking for hedonic values, instead, find online shopping itself
as an experience that provides them with enjoyment.
For people who come from cultures that are motivated by utilitarian motives, they are
more likely to seek online shopping if they see it as easy and convenient (Smith et al., 2013).
Prior research shows this holds true in Germany and in the US- that utilitarian motives seem to
dominate shoppers’ intentions and perceptions (Smith et al., 2013).
Adding to the conclusion that consumers in Germany as well as in the US are led mostly
by convenience factor to shop online is the fact that these two cultures are highly individualistic.
And people from more individualistic cultures “tend to have stronger desires for personal
convenience” (Smith et al., 2013). This individualistic dimension of culture comes from
Hofstede’s model which he built in the 1960s and 1970s for IBM. In this model, Hofstede (1991)
identifies six dimensions along which cultural values could be analyzed: Power distance,
individualism, masculinity, uncertainty avoidance, long-term orientation and indulgence.
According to the definition from the Hofstede’s model, individualism addresses “the degree of
interdependence a society maintains among its members” or in other words, it refers to the extent

17. 17
of relationship between an individual and societal groups in a culture (Smith et al., 2013).
Among Hofstede’s dimensions, individualism is believed to be the most important cross-cultural
influence on consumers’ online shopping motivations (Ozen, & Kodaz, 2012). According to the
model, Germany has quite a high level of individualism (67/100) and the US even has a higher
score in this dimension (91/100).
However, there is a slight difference in the level of relationship between utilitarian
motives and online shopping behavior in Germany and the US. The consumers in the US, with
an extremely high score on individualism, almost always choose Internet shopping because it is
easy, convenient and also many great deals can be found online. On the other hand, German and
many Scandinavian cultures are viewed as highly egalitarian (Smith et al., 2013). Therefore,
consumers, besides the convenience that online shopping brings, also see this method of
shopping as “a useful tool that levels the playing field, leading to fair outcomes for all parties”
(Smith et al., 2013). They believe that online shopping enables them to achieve tasks that cannot
be done by traditional retail stores (Smith et al., 2013).
By understanding the fact that German consumers seek online shopping more because of
utilitarian than hedonic motives and that German is a highly individualistic and egalitarian
culture, managers can improve sales by enhancing perceptions of retailing websites. This can be
done through “broader product selections, exclusive promotions, and the availability of features
that provide easier access to information such as chat-based customer service” (Smith et al.,
2013).
VI United Kingdom
Online retail in United Kingdom has been particularly strong as the British shoppers have

18. 18
high levels of trust in online retailers and the way products are advertised on the web. The U.S
and U.K share English as a common language which is very important part of culture (Ueltschy,
Krampf, & Yannopoulos, 2004). Language has been said to establish the categories in which our
perceptions of the world are organized, not merely a mechanism for communicating ideas but
shaper of ideas (Ueltschy, 2004). Thus, U.S and U.K are culturally unified to a certain extent by
the language they share (Ueltschy, 2004). Additionally, considering Hofstede’s (2001) cultural
paradigm, one can see that US and UK are located very close to each other on the uncertainty
avoidance dimension (Ueltschy, 2004). Low scores on the uncertainty avoidance dimension
indicate that individuals in these cultures are open to change rather than fear it (Ueltschy, 2004).
However, in spite of these similarities, there are many differences in attitudes and values which
make each culture unique (Ueltschy, 2004). Previous studies found significant differences in
advertising appeals used in print ads targeting the markets of Canada, the United States and the
U.K (Ueltschy, 2004). Additional support for the premise is that the cross-country analysis
indicates these similar cultures perceive significantly different risk overall towards online
purchasing as U.S. respondents were more risk averse than respondents in the U.K (Ueltschy,
2004).
Meanwhile, online grocery shopping takes on as a noticeable UK e-commerce consumer
trend. Based on previous research in 2004, the UK “has arguably the most developed online
grocery retail market in the world”, with more than 1.3 million people shopping for groceries
online (Robinson, Riley, Rettie, & Rolls-Willson, 2007). Of course, online shopping in general
has been growing at a much faster pace since then. Since a decade has passed with e-commerce
becoming more common and advanced for consumers, it is believable that the number of UK
online shoppers has increased dramatically presently.

19. 19
Shopping online for groceries can be classified as a discontinuous innovation, since the
behavior pattern of selecting grocery items online is considerably different from personally
choosing items on display on a supermarket shelf (Robinson et al, 2007). This is particularly the
case for produce such as fresh meat, fish, fruit and vegetables, which are rich in sensory
attributes (Robinson et al, 2007). Based on previous studies, consumer perceptions of the relative
advantage and compatibility of electronic grocery shopping positively influenced the intention to
adopt online grocery shopping (Robinson et al, 2007). For example, busy consumers regarded e-
grocery as compatible with their shopping experiences, while the physical effort associated with
in-store shopping and time pressure positively influenced the perceived relative advantage of
shopping online (Robinson et al, 2007). Perceived convenience therefore emerged as a
potentially decisive factor in determining consumers’ perceived relative advantage and
compatibility of electronic grocery shopping (Robinson et al, 2007). Finally, as expected,
consumers’ perceptions of the complexity of electronic grocery shopping had a negative
influence on their e-grocery intentions (Robinson et al, 2007). Previous findings show that US
online grocery shopper adopters attached higher compatibility, higher relative advantage, more
positive social norms and lower complexity to internet grocery shopping comparing with
consumers who make purchases online or consumers who had never bought anything on the
Internet (Robinson et al, 2007).
As UK e-grocery market is still growing and intensifying competition, it is important to
look at consumers’ motivations for adopting the online mode of shopping for groceries, as well
as into the dislikes which may threaten further diffusion and growth (Robinson et al, 2007). A
major motivation for purchasing groceries online is convenience, both in terms of being able to
shop anytime and of having bulky items delivered (Robinson et al, 2007). From the research

20. 20
interview conducted by Robinson (2007), a female answered that she shops groceries online “for
bulk buying so they (the site) can cart it home rather than her carting it home, things like bottled
water, sacks of dog food, and sacks of potatoes.” It is understandable that lack of males in the
house may be an incentive for females to bulk buy online to avoid all the hassle carrying heavy
goods from local stores to their houses. Online grocery shopping is considered ideal for heavy or
bulky goods as buyers tend to order large quantities of daily necessities such as cat litter, diapers,
detergents and toilet paper. At the same time, instead of only reading the label of a product in a
shop, online browsing allows one to have decent informational description of the product which
further increases the reason for online shopping. Also, life events emerge as the catalyst for
either starting or discontinuing online grocery shopping, suggesting that adoption of online
grocery shopping is reconsidered in view of changing lifestyles (Robinson et al, 2007). Through
a qualitative research conducted by Robinson (2007) with 32 respondents in Greater London,
situational variables appeared to be the dominant triggers for starting online grocery shopping
because of the convenience. Breaking a limb, busy working, caring for elderly parents, having a
baby are some of the reasons that motivated people to start Internet grocery shopping. After the
elders passed away or injuries healed, people usually tend to return to their normal grocery
shopping habits at traditional supermarkets. Online grocery shopping is more of a complement
with traditional store shopping than an alternative.
The British shoppers’ preferences towards online grocery brands in the UK are mainly
Tesco, the largest UK provider and also the world’s biggest Internet grocery business (Robinson
et al, 2007). Tesco.com’s online market share currently represents 45% of the UK online grocery
market (Wilson-Jeanselme, & Reynolds, 2006). For a particular sample drawn from high net
worth families from independent schools in Surrey, 50.39% of respondents were currently

21. 21
shopping online with Tesco.com for groceries (Wilson-Jeanselme et al, 2006). Sainsburys.co.uk
and Ocado.co.uk come close in competition with Tesco.com. These three brands represent the
leading online grocery retailers in the UK.
By understanding that British consumers often buy groceries online, supermarkets and
brands need to find ways to bridge the gap between shoppers searching online for product
information to actual sales. Brands also have to come out with new digital marketing ideas to
engage customers online by creating user friendly search engines and also more
illustrations/animations, recipes, simulated stores/games on their websites to make online
grocery shopping more interesting.
VII Conclusion
The Internet is a global communication medium that is increasingly being used
worldwide as an innovative tool for marketing goods and services (Clemes et al, 2014).
Competitions between online retail sites become more intense as online shopping users
worldwide dramatically increase every year. Convenience and time efficiency are mostly the
main reasons why consumers start to shop online instead of going to traditional brick-and-mortar
stores. With the widespread use of smartphones and tablets, online shopping enable people to
shop anywhere, anytime with just a click away. . Cultural dimensions of uncertainty avoidance
and trust as well as gap in the development of e-commerce seem to significantly influence
consumers’ perceptions and adoption of the internet for shopping in the international market
(Tong, 2010). Online retailers need to build an understanding of why and how online consumers
from different cultures make their decisions to know what areas to improve on to increase their
sales and further grow their business.

22. 22
Since the literature reviewed only focused on cultural differences in consumer behaviors
from few countries, there can be more in-depth research conducted in the future. Future research
can focus on online shopping categories such as frequency of shopping (e.g., non-shoppers,
occasional shoppers, and frequent shoppers), or types of product categories purchased (e.g.,
goods versus services or luxuries versus necessities) (Clemes et al, 2014). Furthermore, the
relationship between customer satisfaction, e-loyalty and continuous shopping intention in the
Chinese online shopping environment should be scrutinized (Liu et al, 2008).
Second, beside decision factors, there are other factors that may influence consumers’
adoption of online shopping such as product features, incentives, or past shopping experiences.
Future research can develop more detailed models that can capture and explain the differences
across product categories or focus on one category, such as clothes, books, CDs or airline tickets
(Liu et al, 2008). Also instead of focusing on many countries around the world, future studies
can focus just on the countries in one continent. For example, the cross-cultural study can center
on countries in Asia like China, Japan, South Korea, Singapore, Vietnam, etc. By concentrating
on one continent, research can contribute more details to the understanding of the difference in
cultures in that one region. On the other hand, surveys can expand to other geographic regions of
a country, not just restricted to one city.

23. 23
References
Blecken, D. (2008). Korea’s New Consumer Movement. Media: Asia's Media &
Marketing Newspaper, 20-21.
Cauley, P. (2015). The E-Retail Revolution. Response, 23(6), 38-44.
Clemes, M., Gan, C., & Zhang, J. (2014). An empirical analysis of online shopping adoption in
Beijing, China. Journal of Retailing & Consumer Services., 21(3), 364-375. doi:
10.1016/j.jretconser.2013.08.003
Ghosh, S. (1998). Making Business Sense of the Internet. Harvard Business Review, 76(2),
126-135.
Hye-Jung, P., Leslie Davis, B., & Nancy J., R. (2007). Fashion innovativeness,
materialism, and attitude toward purchasing foreign fashion goods online across national
borders: The moderating effect of internet innovativeness. Journal Of Fashion Marketing
& Management, 11(2), 201-214.
Jain, S. K., & Jain, M. (2011). Exploring Impact of Consumer and Product Characteristics on E
Commerce Adoption: A Study of Consumers in India. Journal Of Technology
Management For Growing Economies, 2(2), 35-64.
Khare, A., Khare, A., & Singh, S. (2012). Attracting Shoppers to Shop
Online—Challenges and Opportunities for the Indian Retail Sector. Journal Of Internet
Commerce, 11(2), 161-185. doi:10.1080/15332861.2012.689570
Kirk, D. (2002, October 4). Central Bank Chides Koreans For Their Spendthrift Ways.
New York Times. p. W1.

24. 24
Liu, X., He, M., Gao, F., & Xie, P. (2008). An empirical study of online shopping customer
satisfaction in China: A holistic perspective. International Journal of Retail &
Distribution Management, 36(11), 919-940. doi: 10.1108/09590550810911683
Morganosky M, Cude B. Consumer response to online grocery shopping. International
Journal Of Retail & Distribution Management [serial online]. January 2000;28(1):17.
Available from: Business Source Complete, Ipswich, MA. Accessed April 6, 2015.
Ozen, H., & Kodaz, N. (2012). Utilitarian Or Hedonic? A Cross Cultural Study In Online
Shopping. Organizations & Markets In Emerging Economies, 3(2), 80-90.
Robinson, H., Riley, F., Rettie, R., & Rolls-Willson, G. (2007). The role of situational variables
in online grocery shopping in the UK. Marketing Review, 7(1), 89-106.
doi: 10.1362/146934707X180703
Sahney, S., Shrivastava, A., & Bhimalingam, R. (2008). Consumer Attitude Towards
Online Retail Shopping in the Indian Context. ICFAI Journal Of Consumer Behavior,
3(4), 34-68.
Sakkthivel, A. M. (2006). Impact Of Demographics On The Consumption Of Different Services
Online In India. Journal Of Internet Banking & Commerce, 11(3), 8.
Sarkar, A. (2011). Impact of Utilitarian and Hedonic Shopping Values on Individual's
Perceived Benefits and Risks in Online Shopping. International Management Review,
7(1), 58-65.
Smith, R., Deitz, G., Royne, M. B., Hansen, J. D., Grünhagen, M., & Witte, C. (2013).
Cross-cultural examination of online shopping behavior: A comparison of Norway,
Germany, and the United States. Journal Of Business Research, 66(3), 328-335.
doi:10.1016/j.jbusres.2011.08.013

25. 25
Solomon, M. (2004), Consumer Behavior, Prentice-Hall, Upper Saddle River, NJ.
To, P., Liao, C., & Lin, T. (2007). Shopping motivations on Internet: A study based on
utilitarian and hedonic value. Technovation, 27(12), 774-787.
doi:10.1016/j.technovation.2007.01.001
Tong, X. (2010). A cross-national investigation of an extended technology acceptance model in
the online shopping context. International Journal of Retail & Distribution
Management, 38(10), 742-759. doi: 10.1108/09590551011076524
Ueltschy, L., Krampf, R., & Yannopoulos, P. (2004). A Cross-National Study Of Perceived
Consumer Risk Towards Online (Internet) Purchasing. Multinational Business Review,
12(2), 59-82.
Wilson-Jeanselme, M., & Reynolds, J. (2006). The advantages of preference-based
segmentation: An investigation of online grocery retailing. Journal of Targeting,
Measurement & Analysis for Marketing, 14(4), 297-308.