Gulf Arab E‐Business Environment: Localization Strategy Insights

The Gulf Arab region, particularly Qatar and the United Arab Emirates (UAE), took significant steps toward adopting e‐business and is poised to become a significant online marketplace. The region has a number of vital ingredients that could make it an e‐commerce powerhouse; however, e‐commerce has not reached its full potential. In this article, the authors explore the e‐business environment in the Gulf Arab region and shed light on some of the opportunities and challenges that are shaping and restricting e‐business infiltration. The article places greater emphasis on the idea of localization and how it may impact consumer behavior and expansion of e‐commerce. We argue that by increasing the focus on culturally customized online content by considering country‐level cultural, geopolitical, and linguistic factors, this region could be lucrative for companies looking to attract online consumers. © 2015 Wiley Periodicals, Inc.     

On market mavens and consumer self‐confidence: A cross‐cultural study

Market mavens are attentive to media and important diffusers of marketplace information. This study examines the relationships between cultural individualism, general and consumer self‐confidence, and market mavenism in the context of two distinct cultural systems, the United States and South Korea. The examination of cross‐cultural equivalence of the constructs under study provides evidence for both configural and full or partial metric invariance. The results indicate that cultural individualism is positively related to general self‐confidence, general self‐confidence is positively related to consumer selfconfidence, and consumer self‐confidence is positively related to market mavenism. Additionally, this research shows that these relationships hold in both the U.S. and South Korean samples. The results of this study indicate that market mavenism, and thus levels of confidence about marketplace knowledge and speed of diffusion of such information may be more prevalent among the more individualistic than collectivistic consumers. © 2007 Wiley Periodicals, Inc.     

Consumer Perceptions of Privacy and Security Risks for Online Shopping

Government and industry organizations have declared information privacy and security to be major obstacles in the development of consumer‐related e‐commerce. Risk perceptions regarding Internet privacy and security have been identified as issues for both new and experienced users of Internet technology. This paper explores risk perceptions among consumers of varying levels of Internet experience and how these perceptions relate to online shopping activity. Findings provide evidence of hypothesized relationships among consumers’ levels of Internet experience, the use of alternate remote purchasing methods (such as telephone and mail‐order shopping), the perceived risks of online shopping, and online purchasing activity. Implications for online commerce and consumer welfare are discussed.     

Brand trust and engagement in social commerce

With the surge in social media (SM) users around the world, the scope of social commerce (SC) in brand engagement is a prominent area of discussion. The present study empirically investigates the effect of social commerce construct (SCC), multi-dimensional constructs of social presence theory (SPT) and consumer generated content (CGC) on brand trust and brand engagement in SC platforms. An online survey was conducted among 625 Indian consumers who had made more than one purchase using SC platforms in the previous 6 months. Structural equation modelling technique was employed for testing the hypotheses and conceptual model. The results suggest that each element of SCC, SPT and CGC positively contributes to brand trust and engagement. Further, the study provides insight into brand trust and brand engagement in SM, which prompts brand usage intention of the consumers. The insights can be used by managers to create long-term customer relationship management action plans that emphasize brand trust and engagement.     

Trustmarks: Strategies for exploiting their full potential in e-commerce

Internet-based commerce has undergone explosive growth over the past decade and is expected to keep growing. With the increasing popularity of online marketplaces, trust is seen as a key foundation for consumers’ willingness to purchase, in particular, from unknown sellers. While trust has been examined in various contexts, limited focus has been placed on the importance of displaying institutional trust assurances such as trustmarks on retailers’ websites. We conducted two studies into how the use of trustmarks impacts consumer trust, consumer risk perceptions, and, consequently, influences consumer purchase intentions. The results of the two studies suggest that the use of trustmarks increases consumer online trust and purchase intentions, as well as reducing their perceived risk. We use these results to inform managerial decision making in e-commerce, particularly for marketers and e-retailers. We provide three important managerial lessons to be learned from our insights. Our implications are important not only for mature e-commerce markets to create a competitive advantage but also for growing and emerging e-commerce markets, where new retailers are trying to establish trust among their consumers to increase market share.     

Optimal timing to invest in e‐commerce

The timing of investment in e‐commerce remains hotly debated in both the academic and investment communities. This study develops a framework for analyzing the optimal timing for a company to invest in e‐commerce for conducting its business‐to‐business (B2B) or business‐to‐consumer (B2C) transactions. This study applies a real option theory to assess a new risk–reward dynamic for investing in e‐commerce. The numerical results demonstrate that the optimal timing of investment in e‐commerce depends on uncertainties regarding future cash flows and the opportunity costs associated with e‐commerce. Implications with regard to the behavior of Internet companies from a financial perspective are discussed. © 2006 Wiley Periodicals, Inc.     

Dialectical mind can be sweet toward crisis‐associated products/brands

Consumers’ thinking style (e.g., dialectical thinking), which is fundamental to cognition, has been paid inadequate attention in the consumer literature. This research explores the impact of dialectical thinking on Chinese consumer responses toward crisis‐associated products/brands. Findings in three experimental studies indicate that, in comparison to those primed with nondialectical thinking, consumers primed with dialectical thinking report higher levels of purchase intention and trust for a crisis‐associated product/brand. This is the case not just for products with Chinese cultural background, but also for products with western cultural background. Consumers’ perceived severity of crises moderates the impact of dialectical thinking, with a stronger impact in a highly severe crisis situation than in a less severe one. A survey study indicates a similar pattern. These findings are important in suggesting ways of encouraging Chinese consumers to be insistent on quality standard in order to better protect their consumer rights, and moreover, for multinational corporations on how best to respond and formulate strategies of handling product‐harm crises in the Chinese market.     

Young consumers’ innovativeness in apparel choices: A model including consumer self‐confidence

In industries with network effects, consumer innovators help to trigger the critical mass needed for a product innovation to be successful. Thus, firms can benefit from actions that increase consumer innovativeness in their target markets. Consumer innovativeness has been associated with variables such as hedonic shopping motivation, impulsiveness and status seeking. There is limited work on the impact on consumer innovativeness of consumer characteristics that reflect consumers’ self‐confident ability to choose. This study proposes and tests a model for consumer innovativeness that incorporates variables from previous research and uncovers the importance of consumer self‐confidence. We collect survey data from 534 Chilean girls, ages 10–15. After building constructs with the help of exploratory factor analysis, we analyze the data with linear regression estimation (via OLS). Our results reveal that consumer self‐confidence is positively and significantly related to consumer innovativeness. Our findings also add evidence ‐from a younger age group‐ regarding the significance of status seeking, impulsiveness and hedonic shopping motivation on consumer innovativeness. Results suggest that companies could leverage consumer innovativeness by taking actions to increase consumers’ self‐confidence. Innovative apparel choices in young consumers could possibly also be strengthened by communicating status achievement and by enhancing shopping enjoyment.     

Adolescents’ perceived brand deprivation stress and its implications for corporate and consumer well‐being

Stress can impact various aspects of a person's well‐being. While some researchers have suggested that consumption‐related activities may cause stress, no research has yet explored such stress among vulnerable, younger consumers. To better understand this phenomenon, the concept of adolescents’ perceived brand deprivation stress (BDS) is introduced as a state of tension perceived negatively by a young consumer when he or she does not have specific brands from a particular product category. In a series of three studies with adolescents aged 11–17 years, a reliable and valid measure of BDS is developed and a framework encompassing antecedents and consequences of it is tested. This research demonstrates that an adolescent's peer group compared to the media exerts the strongest influence on BDS which is also affected by product involvement and age. In turn, stress influences both brand purchase intentions and psychosomatic illnesses, with the latter being reduced by consumer self‐confidence. The studies show that BDS is real, but seemingly problematic for only a small portion of vulnerable adolescents. The findings suggest that marketers should be cautious when targeting young consumers and that educational programs aimed at developing consumer skills and confidence in adolescents are advisable.     

Perceived ease of use in prior e‐commerce experiences: A hierarchical model for its motivational antecedents

This study develops and tests a theoretical model to evaluate the motivational factors behind perceived ease of use in prior e‐commerce experiences. This hierarchical model includes need for arousal as the independent variable; general self‐efficacy, technological innovativeness, and consumer self‐determination as the mediating variables; and perceived ease of use in prior e‐commerce experiences as the dependent variable. Tested by data generated from a survey of 290 consumers, the model yields satisfactory fit and contributes to the literature by adding more intrinsically motivational variables to predict perceived ease of use. Practical and academic implications are also discussed. © 2010 Wiley Periodicals, Inc.     

Effect of consumer self‐confidence on information search and dissemination: Mediating role of subjective knowledge

Consumers search for information about products to make a satisfactory purchase decision and gain knowledge about new features and updates. Consumers also use this knowledge to be vocal about their product experience because several consumers seek interpersonal recommendations. This phenomenon has contributed to the emergence of information search (IS) and information dissemination (ID) as a key research area in the field of consumer behaviour. However, the role of personal factors such as consumer self‐confidence and subjective knowledge has received little attention in the extant IS and ID literature. The major argument of this study is that information acquisition confidence and social outcome confidence enhance subjective knowledge and consequently increase the will of consumers to search and disseminate information in the context of smartphone buyers in India. Structural equation modelling was employed to test the proposed hypotheses using a convenience sample of 259 consumers obtained through a cross‐sectional survey. The study shows that subjective knowledge is crucial in strengthening the association between consumer self‐confidence and consumer intention for IS and ID. Additionally, enhancing consumer’s social outcome confidence contributes towards high subjective knowledge and consequently accelerates information dissemination. Results suggest that firms could focus on enhancing the social outcome confidence and subjective knowledge of consumers to motivate them to disseminate information. The results also show that consumers with high confidence in information acquisition ability have the high subjective knowledge and are more likely to search for information. Overall, this study contributes to the emerging literature regarding the role of personal factors in IS and dissemination behaviour.     

Trust and the don't‐want‐to‐complain bias in peer‐to‐peer platform markets

This paper addresses peer‐to‐peer (P2P) digital platform markets, often associated with the “sharing economy” or the “collaborative economy”. Such digital platforms, facilitating new purchasing channels for consumers by matching P2P supply and demand, can be considered new market places challenging the conventional markets. How are P2P platform markets evaluated by the consumers? Based on a comprehensive survey‐data material, five different P2P service markets are considered by peer buyers and the results compared to consumers’ evaluations from similar conventional service markets according to trust, comparability and consumers’ satisfaction with the transactions. Comparability seems to be one advantage for the platform markets, while trust could become a problem. Conditions for trust in P2P platform markets is particularly interesting to study because contrary to conventional markets P2P transactions cannot rely on governmental laws, regulations and security net. This trust problem has been solved by a trust‐generating rate and review system. Our data material, however, distinguishes a mechanism that we have coined as the don't‐want‐to‐complain bias. More precisely, people do not like to complain, hence buyers of P2P services often hesitate to give negative ratings when they are discontent with a service or a supplier. Therefore, positive ratings become overestimated. If consumers recognize this bias, ratings and reviews will lose credibility and no longer be considered trustworthy. Eventually, this may threaten the well‐functioning of P2P markets.     

Will they pitch or will they switch? Comparing Chinese and American consumers

This study compares the conditions for consumer satisfaction and word of mouth (WOM) between Chinese and American consumers. The authors utilize a between‐subjects factorial design experiment to investigate the effect of service experience (positive or negative) and consumption context (hedonic vs. utilitarian) across these two cultures. Results indicate that consumers perceive higher levels of satisfaction and switching costs, and provide higher WOM intention for positive than for negative service experiences. The relationship between service experience and perceived switching costs is further moderated by consumption context and culture. Of importance is the critical mediating role of consumer satisfaction in driving perceived switching costs and WOM intention. The comparison of Chinese and American consumers also reveals the distinct switching behaviors between the two groups of consumers, which can be explained from a cultural perspective. The study findings provide insights into provider‐switching and WOM‐spreading behaviors by Chinese and American consumers, under hedonic versus utilitarian consumption contexts.     

Social commerce: Is interpersonal trust formation similar between U.S.A. and Spain?

In social commerce, interpersonal trust when individuals communicate is key among the parties. The main objective of this study is to investigate how the consequent variables, “interpersonal trust” and “users’ intention”, are impacted by the antecedents of trust-building and cultural dimensions when people are engaged in social commerce. The research model is substantiated using data collected in the U.S.A. and Spain. While all the trust-building antecedents have significant positive impact upon trust, there are cultural differences between the countries. The findings can be of interest to global marketing managers and information officers.     

The impact of blockchain technology on the online purchase behavior of green agricultural products

The purpose of this study is to identify and investigate the types of trust and their impact mechanisms in the application of blockchain technology for green agricultural products. A mixed research approach was used in this study. First, qualitative in-depth interviews with consumers were conducted to identify the technological path (blockchain technology), and the information disclosure path (environmental information of green agricultural products) that affect consumer trust. Two types of consumer trust were also identified, namely, cognitive trust in blockchain technology (digital trust), and instantaneous trust in blockchain technology disclosure information (swift trust), both of which play a role in influencing consumers’ immediate purchase. Then, based on the interview results, a theoretical model for this study was developed by combining signal theory and trust transfer theory. Through a quantitative survey, 474 valid data were collected to empirically examine the role of consumer blockchain technology experience and environmental information transparency perceived on digital trust and swift trust, and the role of both types of trust on impulse buying. The results show that consumer blockchain technology experience can significantly and positively affect the environmental information transparency perceived. And both have a positive effect on digital trust and swift trust. Also both trusts have a significant effect on impulse buying. Further mediating effects confirm the environmental information transparency perceived as an important intrinsic mechanism by which the blockchain technology experience influences consumer trust. The results of this study add an empirical basis for the role of blockchain technology. It also provides a reference for technology adoption by related companies.     

The Role of Consumers' Trust in Online-Shopping

Many consumers are sceptical or suspicious about the functional mechanisms of electronic commerce, its intransparent processes and effects, and the quality of many products that are offered online. This paper analyses the role of consumer trust as a foundation for the diffusion and acceptance of electronic commerce. Starting from a functional perspective trust is seen as distinct but potentially coexisting mechanism for reducing the uncertainty and complexity of transactions and relationships in electronic markets. The analysis focuses on conditions of e-commerce transactions that are relevant for the formation of trust problems. Drawing on the theory of information two types of uncertainty are described: system-dependent and transaction-specific uncertainty. Finally different activities and instruments are described and categorized that Internet firms can use to establish and maintain trust.     

共享经济下消费者信任的形成机理及影响机制

在对336份调研问卷实证分析基础上,从在线信任理论、制度信任理论及社会渗透理论出发,对我国共享经济下消费者信任的前因和后果及其作用机制进行研究,认为制度机制有效性感知是能代表审核与认证机制有效性感知、隐私保证机制有效性感知和安全保障机制有效性感知的形成性二阶变量,对消费者信任有显著正向影响;与供方互动有效性感知对消费者信任的正向影响不显著,与其他消费者互动有效性感知对消费者信任的正向影响显著;消费者信任对持续共享意愿有显著正向影响,并对感知风险有显著负向影响;制度机制有效性和社会互动有效性对消费者信任的影响存在显著的性别差异,即性别对这两条路径具有调节效应。因此,共享经济平台企业应建立健全管理制度,构建安全、信赖、可靠的在线交易环境,提高消费者的信任和信心,以实现共享平台的可持续发展;共享平台应优化平台网站界面,充分利用社交媒体和社交网络,构建线上和线下平台共享社区,释放共享平台在基层民主治理创新方面的活力;政府主管部门应牢牢把握消费者安全至上的发展理念,加强与平台企业之间的数据共享,建立和完善共享平台与政府部门联动的应急处置机制和风险防范化解机制,形成多元主体协同治理新格局;基于消费数据,共享平台应对市场进行有效细分,制定有针对性的差异化运营策略和营销策略,最大化满足消费者个性需求。     

Consumers' perceptions of functional foods: trust and food‐neophobia in a cross‐cultural context

Consumers' perceptions of functional foods are complicated by perceived risks and complexity that appear from growing and sometimes confusing information flow. Social trust can serve as a mean for the reduction of risk and complexity. It is thus vital to understand the sources of distrust and food‐neophobia as well as coping mechanisms used by consumers to ensure food provision and safety. We discuss the results of a qualitative inquiry in the form of focus groups into consumers' perceptions of functional foods in Russia and Germany. Altogether eight focus group interviews were carried out in different parts of Russia and Germany in December–January 2012–2013. A total of 59 people participated in the discussions. Different perspectives provided by the discussions in the two countries indicate different levels of trust. Deeper culturally embedded and wider‐spread distrust in formal institutions in Russia pushes consumers towards developing informal networks to ensure food provision and safety. It leads to high levels of food‐neophobia as consumers perceive traditions as the most important guarantee for healthy food. On the other hand, German participants indicate a number of formal institutions that are trustworthy and through which information concerning novel and healthy attributes in foods can be communicated. We provide exploratory views on the importance of social trust in consumers' perceptions of functional foods and lay out mechanisms that consumers develop to deal with increasing risk and complexity in food choices.     

Materialism and conspicuous consumption in China: a cross‐cultural examination

With the growing rise in consumer spending and economic power in Asian societies, it is increasingly important to explore the implications of these developments on consumer culture. This cross‐cultural study first discusses the rise of materialism and conspicuous consumption in post‐revolution China then examines differences in these phenomena between young adult consumers, aged 18–35, living in urban China and the United States. Utilizing survey data from over 600 respondents, significant differences were found in both materialism and conspicuous consumption, with Chinese young adults scoring higher in both variables. The findings show, that compared with past comparative studies, it appears both materialism and conspicuous consumption are on the rise among urban Chinese consumers.     

Elucidating trust-building sources in social shopping: A consumer cognitive and emotional trust perspective

With the popularity and growth of social commerce, scholars and practitioners are particularly interested in how the integration of social media with e-commerce practice may resolve the challenge related to developing consumer-seller trust. Adopting a cognitive-emotional trust perspective, this study investigated the process by which consumers' trust in seller builds in a social commerce setting. Specifically, perceived familiarity, situational normality, cognitive and emotional trust in platform, and social interactivity were proposed as key antecedents of consumers' cognitive and emotional trust in seller. The model was examined with two complementary data sets collected from leading social commerce platforms in China: WeChat Store (N = 430) and Xiaohongshu (N = 397). This work advances the theoretical understanding of consumer's social shopping intention through extending the cognitive-emotional trust perspective and lends insights into the contextualized sources of trust building. In addition, these findings offer practical implications that help practitioners cost-effectively build consumer trust in the social commerce setting.