Investigating Uncertainty Avoidance and Perceived Risk for Impacting Internet Buying: A Study in Three National Cultures

Abstract

The purpose of this research is to investigate factors impacting internet buying in three cultures: USA, India, and Jordan. While several consumer characteristics impacting internet buying have been studied in previous research, there has been relatively little research which studies the factors across national cultures. Internet buying and commerce has a global reach and several corporations count on global markets for expansion and growth. As a result, it is critical to understand the particular nature of differences in consumer characteristics impacting internet buying in different countries and cultures. This paper reports on an empirical study, which tests the impact of consumer characteristics uncertainty avoidance and perceived risk on internet buying. Data was collected and analyzed from USA, Jordan, and India. Results indicate that in cultures where uncertainty avoidance is high, perceived risk with internet, buying is also high, and this impacts internet buying negatively. Cultures where perceived risk is high, it impacts internet buying negatively. Results provide practical implications to web based vendors on consumer characterize that should be taken into account when marketing online in different cultures. Results also provide valuable insights into the nature of internet buying and the factors that limit internet-buying acceptance across cultures.

The factors that influence customer e-services adoption

“…Privacy protection policies may be used to ensure maximum security of personal data [32]. Perceived risk is defined as uncertainty about the possible negative consequences of using a product or service [32]. Consumers are more comfortable using face-to-face services because they feel that there is less risk [4].…”

“…Privacy protection policies may be used to ensure maximum security of personal data [32]. Perceived risk is defined as uncertainty about the possible negative consequences of using a product or service [32].…”

The Effects of Social Media Marketing on Online Consumer Behavior

“…One of the advantages of internet is that it enables businesses to reach a worldwide customer population, so that customers can survey, select, and purchase products and services from businesses around the world (Al Kailani & Kumar, 2011).…”

The Influence of National Culture on Marketing Strategies in Africa

“…The main weakness with this theory is that it does not consider the competitive environment and the marketing efforts elaborated by firms to switch the customer from resistance to change to innovation defenders. This weakness is highlighted by Al Kailani and Kumar (2011) who state that in the high-tech domain, competition enables marketing creativity which encourage customers to favour innovation even if uncertainty avoidance is higher. Yeniyurt, and Townsend (2003) argue that in some economic conditions, especially in growing and developing countries, uncertainty avoidance has a positive effect on new product penetration.…”