Online retailer reputation and consumer response: Examining cross cultural differences

Abstract

Purpose: The purpose of this study is to investigate cross cultural differences in the impact of online retailer reputation and retail quality on consumers' emotional and cognitive (i.e. perceived risk) reactions, which lead to purchase intention, based on stimulus-organism-response (S-O-R) model. Design/methodology/approach: Two cultures, US (individualism, low uncertainty avoidance) and South Korea (collectivism, high uncertainty avoidance) were chosen for comparison for their contrast in cultural characteristics. Multiple group analysis in structural equation modeling (SEM) was employed in order to compare the structural model in two different cultures. Findings: The results indicate that while the overall mechanism underlying the decision making process is similar for the two countries, differences are found in the relative importance of the factors determining consumers' cognitive and emotional reactions as well as their intention to purchase online. Research implications/limitations: The majority of the respondents were female and their evaluation was mostly towards online apparel websites. It did not bias the result of this study as the two sample sets were comparable in their demographics and online shopping behavior, yet the result may be generalized to a limited extent. Practical implications: The results suggest that retailing strategy may vary in response to cultural differences. In East Asian countries that share Confucian values, targeting consumer emotion through experiential cues may not yield as significant result as it may in the USA. Originality/value: This study will add value to the current literature by examining the cultural difference in consumer psychological process and its consequent effect on purchase intention focusing on reputation as key external stimuli. © Emerald Group Publishing Limited.