UBC_MIS_2.12.03.ppt - E-Loyalty

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UBC_MIS_2.12.03.ppt - E-Loyalty Powered By Docstoc
					Building Loyalty in
E-business Across Cultures

           Dianne Cyr, Carole Bonanni,
           John Bowes, Joe Ilsever

           Simon Fraser University
           Vancouver, Canada
           SSHRC INE funded project
                 Simon Fraser University


Model – Methodology – Results - Interpretation
                             The Questions…

       Integration of E-loyalty – Website Design – Culture

General Research Questions:

•   How do predispositions for online e-loyalty differ across cultures?

•   Are there differences in preference and perception of website design
    in a controlled comparison between a local and foreign website?

•   What is the intersection of culture and web design related to e-
Antecedents of E-loyalty
   Website Trust
      Yoon (2002) – security, website properties, search functionality,
      personal variables -> trust
      Chen and Dhillon (2003)) – trust in an Internet vendor resides
      in individual characteristics, the vendor, website
      Corritore (2003) - includes both cognitive and emotional
      Jarvenpaa et al (1999) – mixed results across cultures
   Website Satisfaction
      Anderson and Srivanan (2003) – satisfaction a precursor to e-
      Yoon (2002)
   Website Perception
      Simon (2001) – cross-cultural comparisons of the web interface
Consumer Attributes

   Disposition to trust online payment across cultures
      Palmer et al (2000), Hoffman et al (1998) – refund policies,
      logos, clear statement as to how consumer information used
      Doney et al (1998), Cheskin (2000) found found trust to differ
      across cultures

   Perceived reputation – Traditional sales - Doney and Cannon
       (1997); Online – Egger (2000), Yoon (2002)

   Service Preference – Parasuraman et al (1988) SERVQUAL; Sun
      (2001) different service expectations across cultures

Culture, Design and E-loyalty

   Egger (2001) – architecture of information, ease of use
   Koufaris (2002) – web skills, search mechanisms
   Fogg et al (1999) – credibility as believability and quality
   Barber and Badre (2001) – “culturability” – colors, icons,
   presentation of info, navigation…
   Badre (2002) – mixed results when testing across cultures
   Del Gado and Nielsen (1996) – color and screen design directions
   have different psychological associations across cultures
   Simon (2001) – cultural differences in perception and satisfaction
   related to web design across cultures
A New Model for E-loyalty and Culture

Data Collection
Instrument pre-tested
4 country sample: U.S., Canada, Germany, Japan
30 participants in each country = 120
(Taped) Interviews & (Translated) Surveys

 •Demographic Data              •Local Site (Samsung)
 •Background Information        •Experience Design
 •Disposition to Trust Online   •Trust, Perception & Satisfaction
 •Perceived Security
 •Product & Service Assurance   •Foreign Site (Samsung Hong Kong)
                                •Experience Design
                                •Trust, Perception & Satisfaction

Experience Design: Sample Interview Questions
Local Site
You are going to visit the local Samsung site at

The following questions are about the Samsung home page.
     1.   What do you like best about the home page?
     2.   What would you change about the home page to make it better?

You will now navigate through the local Samsung site to select a cell phone.
     1.   What about the local site is credible and exciting?
     2.   What about the site do you find well designed?
     3.   How would you customize the site to make it most appealing to your culture?

Experience Design: Sample Items
Based on your experience with the local site, please
answer the following:
                                                      Descriptive Statistics

                                                  CANADA               USA          GERMANY   JAPAN
              Female                                52%               45%            30%      39%
              Male                                  48%               55%            70%      61%
              Average age                             33               38.6           33       37
              Managerial position                   37%               59%            43%      29%
              Technical position                    52%               24%            30%      25%
              Average education                      2.2                2.5           2.7      2.3
              level [1]

[1] Education level: 1= High School Level; 2=Bachelor; 3= Master; 4=PhD; 5=Other.
                                   Main Factors

                             Pearson Correlation Matrix

                     Dispo1             Dispo2             Dispo3         Secur3

Dispo1                   1               .842***           .698***        .586***
Dispo2                .842***               1              .729***        .499***
Dispo3                .698***            .729***               1          .522***
Secur3                .586***            .499***           .522***          1

*** Correlation is statistically significant at the.01 level (2-tailed)
                         Cronbach Alphas

                       Cronbach Alpha Values

Factors                   Mean    Std Dev      Cronbach Alphas
Local Design              3.32      0.88             .92
Local Trust               3.90      0.87             .93
Local Satisfaction        2.97      1.10             .92
Local Perception          3.20      0.97             .87
Local Loyalty             2.75      1.20             .85
Foreign Design            3.59      0.72             .88
Foreign Trust             3.77      0.80             .88
Foreign Satisfaction      3.03      0.93             .89
Foreign Perception        3.37      0.86             .83
Foreign Loyalty           2.60      1.10             .78
                             Principal Component Analysis
      Variables                       Description                 % variance     Extraction
Local Design1           Layout of the menu                             50%         .875
Local Trust2            Local website is credible                      88%         .896
Local Perception2       Appealing local website                        80%         .881
Local Satisfaction2     Satisfying local website                       87%         .887
Local Loyalty2          Intent to purchase from local website          87%         .872
Foreign Design5         Well-presented screen design                   39%         .784
Foreign Design2         Easy location of product information           25%         .728
Foreign Trust2          Foreign website credible                       81%         .877
Foreign Satisfaction2   Satisfying foreign website                     81%         .872
Foreign Perception2     Appealing foreign website                      76%         .857
Foreign Loyalty2        Intent to purchase from foreign website        82%         .820
 Numbers in the first column indicate item codes within the factor.
Testing & New Model
                                   Consumer Attributes
Hypothesis 1: There are differences across cultures concerning
predispositions for trusting online payment.
Hypothesis 2: There are differences across cultures concerning the degree to
which online vendors are perceived as legitimate.
Hypothesis 3: There are differences across cultures concerning type
of assurance in after sales attention desired.

T-Test- Consumer’s Attributes
  Hypothesis       USA/CDN        USA/G        USA/J         CDN/G          CDN/J        G/J

      H1                                                    t=- 1.94*     t= -2.6**
                       -            -            -                                        -
                       -            -            -              -                -        -
      H3                                     t= -2.4**                    t= -3.4***   t= -2.4**
                       -            -                           -
* significant at 0.1, ** significant at 0.05, ***significant at 0.01(2-tailed)
                            Consumer Quotes
“I just don’t want to give my credit card number, so if the method of
payment is something else, then I feel okay shopping online.”

“I’m very willing [to trust online vendors], but it almost depends on the
design of the website. How it looks to me. If I can find any trust
engineering done in the site…I think it’s okay.”

“What is important is…if the supplier is very famous, very popular. Well, I
can trust them.”

“I guess I prefer e-mail communication over phone communication, just
because I think it’s more efficient and less intrusive. Just because I can
respond to that at my convenience rather being interrupted when I’m in the
middle of something.”
                                   Website Design
Hypothesis 4: There are differences across culture concerning the
preferred elements of website design.
 Differences between Countries – Statistically Significant T-tests
                        CDN/US      CDN/G        CDN/J         USA/G         USA/J       G/J

    Menu layout            -      t=-2.7***      t=1.8*       t=-2.6**       t=1.8*    t=4.2***
  Access to product        -           -         t=2.6**      t=-2.4**            -    t=4.1***
 Professional design       -           -        t=3.6***          -         t=4.8***   t=3.5***
      Logical              -      t=-3.4***      t=1.7*       t=-2.5**      t=2.0**    t=5.3***
   presentation of
    product info
    Screen design          -           -            -             -          t=1.8*       -
     Navigation            -      t=-2.9***      t=2.4**      t=-2.3**      t=2.4**    t=5.2***
     Sequencing            -           -        t=3.2***     t=-2.9***       t=1.8*    t=4.7***
   Presentation of         -      t=-2.9***         -          t=-2.8             -    t=3.6***
  product attributes
   Description of          -           -            -             -               -       -
 product availability
 * significant at 0.1, ** significant at 0.05, ***significant at 0.01(2-tailed)
                            Website Design Quotes
“I say…use more pictures, more drawings to appeal to Japanese
people….Japanese people like the emotional approach.”

I would say, it [the website] doesn’t have to be exciting. I just want to
buy a handy item, I don’t want to go on an exciting shopping tour… I just
search the site where I can buy it, so I don’t have to look at impressive
animations, sounds, and multimedia.”

“…banners drive me crazy, they are very distracting actually, when I got
deeper into the site, there was a flashy thing over here, it is very

“There are two different kinds of home pages. There is the one like every
possible link like the Yahoo home page, where there is like one point two
million links. I look at that an awful lot and…it turns me off. So this one I
find a little more simpler in the sense that it is broken into a few sections,
there’s pictures to break things off…It does a fairly good job.
                                   Local vs. Foreign
Hypothesis 5: Within a cultural group the design elements of the
local site will be preferred rather than the design elements of the
foreign site of the same online vendor.
Design Elements: Comparison of Local Vs Foreign Website – Statistically Significant T-tests
                                CANADA              USA          GERMANY            JAPAN

 Menu layout                        -                 -                -          t= -5.1***
 Access to product                  -                 -                -          t= -6.0***
 Professional site design           -                 -                -          t= -2.4**
 Logical presentation of            -                 -                -          t= -2.8***
 product information
 Screen design                      -                 -                -          t= -1.8***
 Navigation                         -                 -                -          t= -4.8***
 Sequencing                         -                 -                -          t= -5.3***
 Presentation of product            -                 -                -          t=-5.0***
 Description of product             -                 -                -          t= -2.0*
 * significant at 0.1, ** significant at 0.05, ***significant at 0.01(2-tailed)
                         Local vs. Foreign

   Preference for Purchasing from Local versus Foreign Websites
                        % Most Likely to        % Most Unlikely to
                       Purchase from Site       Purchase from Site

Local Site

Canada                       40.7%                    40.7%
U.S.                         37.9%                    44.8%
Germany                      33.4%                     40%
Japan                          7%                      68%
Foreign Site
Canada                        26%                      65%
U.S.                         17.2%                     62%
Germany                      20.0%                     40%
Japan                        17.8%                     43%
                                      Local vs. Foreign
Hypothesis 6: Within a cultural group, local website trust will be
higher than foreign website trust.
Hypothesis 7: Within a cultural group, local website perception will
be higher than foreign website perception.
Hypothesis 8: Within a cultural group, local website satisfaction will
be higher than foreign website satisfaction.
Hypothesis 9: Within a cultural group, loyalty to the local website
will be higher than the loyalty to the foreign website.
Hypothesis 6 to 9
                               CANADA     USA   GERMANY      JAPAN

 Local trust > foreign trust      -        -       -            -
 Local perception > foreign       -        -       -      t28= -5.0***
 Local satisfaction >             -        -       -      t28= -3.7***
 foreign satisfaction
 Local loyalty > foreign       t27=1.8*    -       -      t28= -2.5**
                            Local vs Foreign Quotes
Canada: Opinion of foreign site
“I don’t like the cartoony [images]…it doesn’t seem to fit in well with the
ones of the pictures of the product. Like the product pictures if they weren’t
flashy would be quite appealing.
“All that is there are model numbers. I don’t know SCGH-S308 from SCGH-
A180. That would be great if I knew exactly the model…where as in the
North American site I had a chart and had little pictures and basically had a
comparison [of features]”
Germany: Opinion of foreign site
“The colors are also quite pleasant. But there is a bit too much blinking [on
foreign site]...I don’t like it.”
Japan: Opinion of changes needed in local site
“More bright…colorful. More red colors, yellows.”
Japan: Opinion of foreign site
“Without pictures of people it doesn’t feel warm.”
“I don’t think it’s exciting. It gave me an impression of being cold.”
Results: Bipolar Scale
Results: Bipolar Scale
1.   Consumer attributes (payment, type of service) perceived
     differently across cultures and relate to earlier work on risk
     (Hoftstede 1984; Javenpaa, 1999).

2.   Vendor legitimacy a concern for all cultures and supports
     previous work (Corritore, 2003; Yoon, 2002).

3.   Website design a strong differentiator re consumer preferences
     and supports a need for site localization (Egger and others)

4.   Within a culture, little difference in preference between local and
     foreign site, except in Japan where foreign site is preferred;
     more people would purchase from local than foreign site (except

5.   Very surprising that within cultures, no difference in trust,
     perception, satisfaction and loyalty of local vs foreign site, expect
     Japan where foreign site preferred. Issue: both Samsung sites?
                        Future Directions

1.   Model Testing – for fit and refinement

2.   Large scale online survey – refine current survey; expand to
     include developing economies

3.   Laboratory testing – focus on design issues; eye tracking

4.   Integration of project teams – University of Alberta,
     corporate connections

5.   Design for Mobility – applications for mobile and wearable
                                 IWIPS Conference July 2004

IWIPS 2004                                        8-10 July 2004
           6th Annual
       Workshop on
    of Products and

                        Culture, Trust and Design Innovation

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