An exploratory study
in Taiwan
MA480207 Chu-Yi, Chen
Online shoppers’ perceptions of
e-retailers’ ethics, cultural orientation, and loyalty
Abstract
Purpose
• examine the impact of cultural orientation on
CPEOR.
• understand the influence of CPEOR on e-loyalty
intention.
Design/methodology/approach
• Román’s CPEOR scale and Triandis’ individuality
and collectivism typology.
• 949 respondents is collected via an online
survey.
Abstract
Findings
• The higher consumers perceive positive CPEOR.
Practical implications
• Multinational enterprises can create successful
marketing strategies.
Originality/value
• This study examines both individualism and
collectivism at the individual level.
Outline
I. Introduction
II. Literature Review
III. Methodology
IV. Data Analysis
V. Results
I. Introduction
Privacy
Security
Non-deception
Fulfillment/ Reliability
 Consumer’s perceptions toward e-retailers may limit
their willingness to engage in e-commerce transactions.
II. Literature Review-CPEOR
Privacy
 The security of payments made by credit card and
the privacy of shared information.
II. Literature Review-CPEOR
Privacy
Security
 Refers to the uncertainty associated with providing
personal information on a web site and the risk of
such information being exposed.
II. Literature Review-CPEOR
Privacy
Security
Non-deception
 E-retailer will not use deceptive or manipulative
practices to persuade consumers to purchase
web site offerings.
II. Literature Review-CPEOR
Privacy
Security
Non-deception
Fulfillment/ Reliability
 It also covers relevant service features regarding
prompting order confirmation and tracking the
delivery process.
II. Literature ReviewVertical and horizontal individualism and collectivism
Autonomy
emotional
independence
universalism
specific
friendship
I
Individualist
financial
security
individual
initiative
the right to
privacy
the search
of pleasure
II. Literature ReviewVertical and horizontal individualism and collectivism
collective
identity
emotional
dependence
particularism
group
decision
making
We
Collectivist
stable
friendships
group
solidarity
sharing
duties and
obligations
II. Literature ReviewConsumer loyalty
III. Methodology
Individualism and CPEOR
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.
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.
III. Methodology
Collectivism and 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.
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.
III. Methodology
CPEOR and loyalty intention
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).
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 ∝
1. The security policy is easy to understand
2.
Security
3.
4.
1.
Privacy 2.
3.
The site displays the terms and
conditions of the onlinetransaction
before the purchase has taken place
The site appears to offer secure payment
methods
This site has adequate security features
The site clearly explains how user
information is used
Only the personal information necessary
for the transactionto be completed
needs to be provided
Information regarding the privacy policy
is clearlypresented
0.727
0.631
Construct
Measurement items
The site exaggerates the benefits and
1.
characteristics of its offerings
This site takes advantage of less
Non2. experienced consumers to make
deception
them purchase
This site attempts to persuade you to
3.
buy things that you do not need
The price shown on the site is the
1.
actual amount billed
Fulfillment
You get what you ordered from this
2.
reliability
site
Promises to do something by a
3.
certain time, they do it
Cronbach’s ∝
0.752
0.589
IV. Data Analysis-Factor analysis
and reliability analysis
IV. Data Analysis-Factor analysis
and reliability analysis
IV. Data Analysis-Factor analysis
and reliability analysis
Bartlett's
test
0.00
KaiserMeyerOlkin
0.827
Harman's
onefactor
test 13％
Clean four dimension solution
IV. Data AnalysisParticipants and procedure
Item
Gender
Type
Frequency
%
Male
319
33.60
Female
630
66.40
Under 20
162
17.10
21-30
749
78.90
31-40
38
4.00
Over 41
0
0.00
Gender
Male
34%
Gender
Female
66%
Age
1,239
IV. Data AnalysisParticipants and procedure
High school graduate or less
Some college
Education Bachelor’s degree
Master’s degree
Doctorate degree
Public servants
Commerce
Industry
Occupation
Farming/fishery
Household
Students
24
22
665
230
8
99
114
53
8
13
662
2.50
2.30
70.10
24.20
0.80
10.43
12.01
5.58
0.84
1.37
69.76
IV. Data AnalysisParticipants and procedure
Average online shopping frequency (per month) Less than 1 262 27.61
1
322 33.92
2-3
289 30.45
4-5 Over 6
4-5
45 4.74
5% 3%
Less than 1
28%
Over 6
31 3.27
2-3
30%
1
34%
V. Results-Correlations
V. Results-Multiple regression analysis
V. Results-Multiple regression analysis
V. Results-Multiple regression analysis
VI. Conclusion-Theoretical application
1
To
measuring
consumers'
ethical
perceptions.
2
To examine
personal
awareness
3
To bridge
the existing
gap
VI. Conclusion-Managerial implications
Honesty of
products
and services
Promote
favorable
consumer
attitudes
Increase
loyalty
intention
VI. Conclusion-Limitations
Generalizability is limited.
Establish unidimensionality for each factor
Only a single scale
VI. Conclusion-Future research
Engage in cross-cultural
CPEOR be a mediating or moderating variable
Add more items from various scales