Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

The Effects of Country-Of-Online Retailer on Consumer's Purchase Decision-Making in a Foreign Internet Shopping Mall

  • Received : 2020.09.11
  • Accepted : 2021.08.10
  • Published : 2021.10.31
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose - The growth in consumers' online shopping has even been accelerated by the COVID-19 pandemic. While the purchase can be made from any countries online, the purpose is to examine the effect of the country of the online retailer (COOR) on consumers' perceived risk and purchase motivation, focusing on the retailer not on the brand. Design/methodology - Survey data from online shoppers are analized using the structural equation model. Findings - COOR, like COO of the brand manufacturer, positively affect consumer's purchase intension. First, the images and the perceived psychic distances of the COOR affects both perceived risk and purchase confidence. Secondly, this perceived risk and confidence they put on the transaction then affect the purchase intension of the consumer. Originality/value - We show that the quality of the signal comes not only from the manufacturer-branded product item itself with a certain COO, but also from the retailer who carries it.

Keywords

Acknowledgement

This work was supported by the Soonchunhyang University Research Fund.

References

  1. Ahmed, S. A. and A. d'Astou (1993), "Cross-National Evaluation of Made-In Concept Using Multiplecues", European Journal of Marketing, 27(7), 39-52. https://doi.org/10.1108/03090569310040343
  2. Anderson, J. C. and D. W. Gerbing (1988), "Structural Equation Modeling in Practice: a Review and Recommended Two-Step Approach", Psychological Bulletin, 103(3), 411-23. https://doi.org/10.1037//0033-2909.103.3.411
  3. Bagozzi, R. P., Y. J. Yi and L. W. Phillips (1991), "Assessing Construct Validity in Organizational Research", Administrative Science Quarterly, 36(3), 421-58. https://doi.org/10.2307/2393203
  4. Bauer, R. A. (1960). "Consumer Behavior as Risk Taking", in Dynamic Marketing for a Changing World, Rober S. Hancock, eds. Chicago: American Marketing Association, 389-98.
  5. Bennett, P. D. and G. D. Harrell (1975), "The Role of Confidence in Understanding and Predicting Buyers' Attitudes and Purchase Intentions", Journal of Consumer Research, 2(3), 110-17. https://doi.org/10.1086/208622
  6. Bloemer, J., K., Brijs, and H. Kasper (2009), "The COO-ELM Model: A Theoretical Framework for the Cognitive Processes Underlying Country of Origin-Effects", European Journal of Marketing, 43(1), 62-89. https://doi.org/10.1108/03090560910923247
  7. Brewer, P. A. (2007), "Operationalizing Psychic Distance: A Revised Approach", Journal of International Marketing, 15(1), 44-66. https://doi.org/10.1509/jimk.15.1.044
  8. Chang, M. K., W. Cheung and V. S. Lai, (2005), "Literature Derived Reference Models for the Adoption of Online Shopping", Information and Management, 42(4), 543-59. https://doi.org/10.1016/S0378-7206(04)00051-5
  9. Chao, P. (1998), "Impact of Country-of-Origin Dimensions on Product Quality and Design Quality Perceptions", Journal of Business Research, 42(1), 1-6. https://doi.org/10.1016/S0148-2963(97)00129-X
  10. Chetty, S. and C. Campbell-Hunt (2004), "A Strategic Approach to Internationalization: A Traditional Versus a 'Born-Global' Approach", Journal of International Marketing, 12(1), 57-81. https://doi.org/10.1509/jimk.12.1.57.25651
  11. Child, J., S. H. Ng and C. Wong (2002), "Psychic Distance and Internationalization: Evidence from Hong Kong Firms", International Studies of Management and Organization, 32(1), 36-56. https://doi.org/10.1080/00208825.2002.11043656
  12. Dannenberg, P., M. Fuchs, T. Riedler and C. Wiedemann (2020), "Digital Transition by COVID-19 Pandemic? The German Food Online Retail", Journal of Economic and Social Geography, 111(3), 543-560.
  13. Dikova, D. (2009), "Performance of Foreign Subsidiaries: Does Psychic Distance Matter?" International Business Review, 18(1), 38-49. https://doi.org/10.1016/j.ibusrev.2008.11.001
  14. Dow, D. (2000), "A Note on Psychological Distance and Export Market Selection", Journal of International Marketing, 8(1), 51-64. https://doi.org/10.1509/jimk.8.1.51.19563
  15. Dow, D. and A. Karunaratna (2006), "Developing a Multidimensional Instrument to Measure Psychic Distance Stimuli", Journal of International Business Studies, 37(5), 578-602. https://doi.org/10.1057/palgrave.jibs.8400221
  16. Dowling, G. R. and R. Staelin (1994), "A Model of Perceived Risk and Intended Risk-Handling Activity", Journal of Consumer Research, 21(1), 119-34. https://doi.org/10.1086/209386
  17. Evans, J. and F. Mavondo (2002), "Psychic Distance and Organizational Performance: An Empirical Examination of International Retailing Operations", Journal of International Business Studies, 33(3), 515-32. https://doi.org/10.1057/palgrave.jibs.8491029
  18. Evans, J., A. Treadgold and F. Mavondo (2000), "Explaining Export Development through Psychic Distance", International Marketing Review, 17(2), 164-8. https://doi.org/10.1108/02651330010322688
  19. Garner, S. J. (1986), "Perceived Risk and Information Sources in Services Purchasing", The MidAtlantic Journal of Business, 24(2), 49-58.
  20. Gurhan-Canli, Z. and D. Maheswaran (2000), "Determinants of Country-of-Origin Evaluations", Journal of Consumer Research, 27(1), 96-108. https://doi.org/10.1086/314311
  21. Haubl, G. (1996), "A Cross-National Investigation of the Effects of Country of Origin and Brand Name on the Evaluation of a New Car", International Marketing Review, 13(5), 76-97. https://doi.org/10.1108/02651339610131405
  22. Hong, S. T. and R. S. Wyer Jr. (1990), "Determinants of Product Evaluation: Effects of the Time Interval between Knowledge of a Product's Country of Origin and Information about Its Specific Attributes", Journal of Consumer Research, 17(3), 277-88. https://doi.org/10.1086/208557
  23. Howard, J. A. and J. N. Sheth (1969), "The Theory of Buyer Behavior", Wiley, New York.
  24. Hsu, M. H, and C. M. Chiu (2004), "Internet Self-Efficacy and Electronic Service Acceptance", Decision Support Systems, 38(3), 369-81. https://doi.org/10.1016/j.dss.2003.08.001
  25. Jacoby, J. and L. B. Kaplan (1972), "The Components of Perceived Risk", in Venkatesan, M. Eds, Third Annual Conference of the Association for Consumer Research, Association for Consumer Research, College Park, MD, 382-93.
  26. Keller, K. L. (1993), "Conceptualizing, Measuring, and Managing Customer-Based Brand Equity", Journal of Marketing, 57(1), 1-22. https://doi.org/10.2307/1252054
  27. Kim, H.-W., Y. Xu and S. Gupta (2012), "Which is More Important in Internet Shopping, Perceived Price or Trust?" Electronic Commerce Research and Applications, 11, 241-252. https://doi.org/10.1016/j.elerap.2011.06.003
  28. Korean Statistical Information Service (2020), "Direct Online Purchase Amount by Nation, by Product", http://kosis.kr/statHtml/statHtml.do?orgId=101&tblId=DT_1KE1009&conn_path=I3
  29. Kumar, V., T. R. Bohling and R. N. Ladda (2003), "Antecedents and Consequences of Relationship Intention: Implications for Transaction and Relationship Marketing", Industrial Marketing Management, 32, 667-676. https://doi.org/10.1016/j.indmarman.2003.06.007
  30. Laroche, M., C. Kim and L. Zhou (1996), "Brand Familiarity and Confidence as Determinants of Purchase Intention: An empirical test in a multiple brand context", Journal of Business Research, 37(2), 115-20. https://doi.org/10.1016/0148-2963(96)00056-2
  31. Lee, K. C. and S. J. Kwon (2006), "The Use of Cognitive Maps and Case-Based Reasoning for B2B Negotiation", Journal of Management Information Systems, 22(4), 337-76. https://doi.org/10.2753/MIS0742-1222220412
  32. Maheswaran, D. (1994), "Country of Origin as a Stereotype: Effects of Consumer Expertise and Attribute Strength on Product Evaluations", Journal of Consumer Research, 21(2), 354-65. https://doi.org/10.1086/209403
  33. Meijnders, A., C. Midden, A. Olofsson, S. Ohman, J. Matthes, O. Bondarenko, J. Gutteling and M. Rusanen (2009), "The Role of Similarity Cues in the Development of Trust in Sources of Information about GM Food", Risk Analysis, 29(8), 1116-28. https://doi.org/10.1111/j.1539-6924.2009.01240.x
  34. Miyazaki, D. and A. Fernandez (2001), "Consumer Perceptions of Privacy and Security Risks for Online Shopping", Journal of Consumer Affairs, 35(2), 27-44. https://doi.org/10.1111/j.1745-6606.2001.tb00101.x
  35. Montoya R. M. and R. S. Horton (2004), "On the Importance of Cognitive Evaluation as a Determinant of Interpersonal Attraction", Journal of Personality and Social Psychology, 86(5), 696-712. https://doi.org/10.1037/0022-3514.86.5.696
  36. Montoya R. M., R. S. Horton and J. Kirchner (2008), "Is Actual Similarity Necessary for Attraction? A Meta-Analysis of Actual and Perceived Similarity", Journal of Social and Personal Relationships, 25(6), 889-922. https://doi.org/10.1177/0265407508096700
  37. Nordstrom, K. A. and J. Vahlne (1994), "Is the Globe Shrinking? Psychic Distance and the Establishment of Swedish Sales Subsidiaries during the Last 100 Years", in International Trade: Regional and Global Issues, Michael Landeck, ed. New York: St. Martin's Press.
  38. Olson, J. and J. Jacoby (1972), "Cue Utilization in the Quality Perception Process" in SV-Proceedings of the Third Annual Conference of the Association for Consumer Research, M. Venkatesan, ed. Chicago, IL: Association for Consumer Research, 167-79.
  39. Ozretic-Dosen, D., V. Skare and Z. Krupka (2007), "Assessments of Country of Origin and Brand Cues in Evaluating a Croatian, Western and Eastern European Food Product", Journal of Business Research, 60(2), 130-36. https://doi.org/10.1016/j.jbusres.2006.10.011
  40. Pharr, J. M. (2005), "Synthesizing Country-Of-Origin Research from the Last Decade: is the Concept Still Salient in an Era of Global Brands?" Journal of Marketing Theory and Practice, 13(4), 34-45. https://doi.org/10.1080/10696679.2005.11658557
  41. Podsakoff, P. M., S. B. MacKenzie, J-Y. Lee, and N. P. Podsakoff (2003), "Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies", Journal of Applied Psychology, 88(5), 879-903. https://doi.org/10.1037/0021-9010.88.5.879
  42. Quester, P. G., S. Dzever and S. Chetty (2000), "Country-of-origin Effects on Purchasing Agents' Product Perceptions: An International Perspective", Journal of Business & Industrial marketing, 15(7), 479-90. https://doi.org/10.1108/08858620010351706
  43. Richardson, P. S., A. S. Dick and K. Jain (1994), "Extrinsic and Intrinsic Cue Effects on Perceptions of Store Brand Quality", Journal of Marketing, 58(4), 28-36. https://doi.org/10.2307/1251914
  44. Roggeveen, A. L. and R. Sethuraman (2020), "How the COVID-19 Pandamic May Change the World of Retailing", Journal of Retailing, 96 (2), 169-171 https://doi.org/10.1016/j.jretai.2020.04.002
  45. Simons, H. W., N. N. Berkowitz and R. J. Moyer (1970), "Similarity, Credibility, and Attitude Change: A Review and a Theory", Psychological Bulletin, 73(1), 1-16. https://doi.org/10.1037/h0028429
  46. Sousa, C. M. P. and F. Bradley (2006), "Cultural Distance and Psychic Distance: Two Peas in a Pod?" Journal of International Marketing, 14(1), 49-70. https://doi.org/10.1509/jimk.14.1.49
  47. Srinivasan, N., S. H. Jain and K. Sikand (2004), "An Experimental Study of Two Dimensions of Country-of-origin (Manufacturing Country and Branding Country) Using Intrinsic and Extrinsic Cues", International Business Review, 13, 65-82. https://doi.org/10.1016/j.ibusrev.2003.05.004
  48. Statista (2016), "Annual Net Revenue of Amazon from 2006 to 2014, by Segment", http://www.statista.com/statistics/266289/net-revenue-of-amazon-by-region/
  49. Tan, Soo J. (1999), "Strategies for Reducing Consumers' Risk Aversion in Internet Shopping", Journal of Consumer Marketing, 16(2), 163-180. https://doi.org/10.1108/07363769910260515
  50. Tse, D. K. and G. J. Gorn (1993), "An Experiment on the Salience of Country-of-origin in the Era of Global Brands", Journal of International Marketing, 1(1), 57-75. https://doi.org/10.1177/1069031X9300100105
  51. Verlegh, P. W. J. and J-B. E. M. Steenkamp (1999), "A Review and Meta-Analysis of Country-oforigin Research", Journal of Economic Psychology, 20, 521-546. https://doi.org/10.1016/S0167-4870(99)00023-9
  52. Woodside, A. G. and JR. J. W. Davenport (1974), "The Effect of Salesman Similarity and Expertise on Consumer Purchasing Behavior", Journal of Marketing Research, 11, 198-202. https://doi.org/10.2307/3150562