Exposé - uni-kassel.de · intention to use them are increasing steadily (Accenture, 2012). To explain and predict the use of technologies like mobile commerce applications, a variety

Cultural differences in the use of mobile shopping –

A comparison of France, Germany, the Netherlands and

the United Kingdom

Exposé

Submitted by

Rebecca Hoffmann

European Master in Business Studies

University of Kassel

Kassel, 3rd December 2013

Exposé: Cultural differences in the use of mobile shopping 2

Abstract

Keywords: User acceptance, mobile commerce, cultural differences

Background: Cultural aspects are often neglected by researchers investigating the

determinants of technology acceptance. That is also the case for the examination of

mobile internet use and mobile commerce, which are becoming increasingly

important.

Purpose: The purpose of this thesis is to research the role of culture in influencing

mobile shopping use by comparing four countries (France, Germany, the Netherlands

and the United Kingdom) with the help of the Unified Theory of Acceptance and Use

of Technology 2 (UTAUT2) model.

Method: The necessary data will be collected through an online survey using

quantitative research measures. The results from the survey will be analysed

employing partial least squares regression.


Table of content

Abstract ......................................................................................................................... 2

Table of content ............................................................................................................ 3

List of abbreviations ..................................................................................................... 4

1. Introduction............................................................................................................... 5

1.1 Background ..................................................................................................................... 5

1.2 Problem statement .......................................................................................................... 5

1.3 Purpose ........................................................................................................................... 5

2. Review of Literature ................................................................................................. 6

2.1 Mobile commerce ........................................................................................................... 6

2.2 Culture ............................................................................................................................ 9

2.3 Research Model ............................................................................................................ 11

3. Hypotheses development ........................................................................................ 13

3.1 Performance expectancy and culture ............................................................................ 13

3.2 Effort expectancy and culture ....................................................................................... 14

3.3 Social influence and culture .......................................................................................... 14

3.4 Facilitating conditions and culture ................................................................................ 15

3.5 Hedonic motivation and culture .................................................................................... 15

3.6 Price value and culture .................................................................................................. 16

3.7 Habit and culture........................................................................................................... 16

3.8 Perceived risk and culture ............................................................................................. 16

4. Methodology ........................................................................................................... 18

5. Overview of chapters .............................................................................................. 18

6. Work plan ............................................................................................................... 19

Reference List ......................................................................................................... …20


List of abbreviations

m-commerce mobile commerce

OECD Organisation for Economic Cooperation and Development

PDA Personal digital assistant

PDI power distance index

POS point of sale

TAM Technology Acceptance Model

UAI uncertainty avoidance index

UTAUT Unified Theory of Acceptance and Use of Technology

WAP Wireless application protocol


1. Introduction

1.1 Background

Mobile internet and mobile commerce are on the rise. The smartphone has become the

most popular mobile medium to access the internet and half of those people who do

not own a device yet that allows them to access the internet from wherever they are

intent to buy one soon (Accenture, 2012). Also, the usage of mobile payments and the

intention to use them are increasing steadily (Accenture, 2012).

To explain and predict the use of technologies like mobile commerce applications, a

variety of models have been created. The most commonly used and cited of these

models is the Technology Acceptance Model (TAM), which was created for

technology acceptance in a working environment, though. A more up to date model is

the latest extension of the Unified Theory of Acceptance and Use of Technology

(UTAUT2) which was created for the use in consumer contexts (Venkatesh, Thong,

James Y. L., & Xu, 2012).

1.2 Problem statement

Culture conditions most decisions humans make throughout their lives. Still, models

like the TAM and the more up to date Unified Theory of Acceptance and Use of

Technology (UTAUT) that focus on the determinants of technology acceptance

neglect the role of culture in influencing the adoption and use of technology

(Venkatesh et al., 2012). Most researchers assume that the needs of users are all the

same (Wagner & Klaus, 2009), although there is proof for the divergence of consumer

behaviour due to different cultural predispositions (Mooij, 2003).

1.3 Purpose

Consequently, the purpose of the thesis is to research the role of culture in influencing

mobile shopping use. Therefore, the proposed model will be tested by comparing four

European countries with the help of Hofstede’s cultural dimensions and Schwartz’

theory of cultural values. The selected countries are France, Germany, the Netherlands

and the United Kingdom.

Despite their geographical proximity and their similar state of human development

(United Nations Development Programme, 2013), their history has been marked by


very different influences. Scholars have clustered the world into different country

clusters: While the French are part of Latin Europe, the United Kingdom belongs to

the Anglo cultures and the Netherlands and Germany belong to Germanic Europe

(Gupta, Hanges, & Dorfman, 2002). Last but not least, all four countries are in the

growth stage concerning mobile commerce (Groß, 2012). Therefore, these countries

are suitable for the comparison.

2. Review of Literature

The following section presents an overview of the literature and theoretical constructs

to substantiate the research question put forward.

2.1 Mobile commerce

The first part is dedicated to the review of literature related to mobile commerce (m-

commerce). Definitions as well as the state of literature on mobile commerce are

presented. In addition, literature concerning m-commerce and culture and perceived

risk in m-commerce was reviewed.

The OECD defines mobile commerce (m-commerce) as “a business model that allows

a consumer to complete all steps of a commercial transaction using a mobile phone or

personal digital assistant (PDA)” (OECD, 2007).

Using internet on a mobile telephone has been possible since the introduction of the

“Wireless Application Protocol” (WAP) in 1997. Since then, the development of

technology, such as bigger displays for smartphones, and the decrease of prices have

encouraged an increasing use of mobile internet (Heinemann, 2012).

Current problems are the unmodified applicability of m-commerce in cross-national

contexts (Wagner & Klaus, 2009) and the role of risk in m-commerce (Featherman &

Fuller, 2003).

Topic Title Author Source, year Key statements

m-

commerce

Mobile

Commerce

OECD OECD Digital

Economy

Papers (2007)

Definition of m-

commerce: M-

commerce as a


business model

that allows a

consumer to

complete all steps

of a commercial

transaction using a

mobile phone or

personal digital

assistant (PDA).

Significant

development of m-

commerce

predicted for the

future.

Crucial to reduce

risks for

consumers.

m-

commerce

Mobile

Commerce

2012 – Status

quo und

Potenziale

Svenja Groß eBusiness-Lotse

(2012)

Definition of m-

commerce.

M-commerce as a

form of

appearance of e-

commerce using

wireless

communication

and mobile

terminal devices.

M-commerce

includes the

purchase of

products or

services using

mobile terminal

devices as well as

further activities

that are related

with the purchase,

such as

preliminary

information search

and payment with

the mobile device

(m-payment) at the


POS as well as the

browser or an

application.

France, Germany,

the Netherlands

and the UK are all

in the growth

phase concerning

m-commerce.

m-

commerce

Der neue

Mobile-

Commerce –

Erfolgsfaktoren

und Best

Practices

Gerrit

Heinemann

Book (2012) Mobile internet

use since

introduction of

WAP.

Increased usage of

mobile internet

due to improved

surface with user-

friendly

touchscreen and

price collapse for

mobile data

services.

Explanations of

the common

applications in m-

commerce

(mobile-shopping

website, mobile-

shopping apps,

mobile-shopping

at POS).

m-

commerce

Mobile Web

Watch 2012:

Mobile Internet

– spawning

new growth

opportunities in

the

convergence

era

Accenture (2012) Smartphone is the

most popular

mobile Internet

access medium.

Concerns

regarding data

security persist

(70% of people).


m-

commerce

& culture

Cultural

impacts on the

spread of

mobile

commerce: An

international

comparison

Ralf

Wagner,

Martin

Klaus

Handbook of

research in

mobile

business:

Technical,

Methodological,

and social

perspectives

(2009)

Culture is

important for the

acceptance of m-

commerce offers.

Standardisation of

m-commerce

vendors’ offers

and

communication is

not advisable.

Low PDI and UAI

cultures are more

likely to adopt m-

commerce

services.

m-

commerce

& risk

Applying TAM

to e-services:

The

moderating

role of

perceived risk

Mauricio

Featherman,

Mark Fuller

Proceedings of

the 36th Hawaii

International

Conference on

System

Sciences (2003)

Definition of

perceived risk: the

combination of

uncertainty plus

seriousness of

outcome.

Perceived risk is

an inhibitor of

perceived

usefulness and

adoption intention.

2.2 Culture

The second part of my literature review is concerned with culture. In this part,

definitions of culture are reviewed and the different models that make culture

measurable and comparable and which will be used in my thesis are presented.

One of the most cited definition of culture is the one by Kroeber and Kluckhohn that

defines culture as a product of past actions that will influence future actions of

members of society (Kroeber & Kluckhohn, 1952). Kotabe and Helsen (Kotabe &

Helsen, 2001) define culture as “a learned, shared, compelling, interrelated set of

symbols” to provide orientation to members of society. One of the best known


definitions of culture comes from Hofstede and determines culture as “the mental

programming of the mind” (Hofstede, 1984).

The cultural concepts I will use to test the influence of culture on use of mobile

commerce are Hofstede’s cultural dimensions (Hofstede, Hofstede, & Minkov, 2010)

and Schwartz’ theory of cultural values (Schwartz, 1999).

Last but not least, the theory of convergence versus divergence in global consumer

behaviour is examined (Mooij, 2003).


Culture Culture: A

critical review

of concepts

and

definitions

Alfred

Kroeber,

Clyde

Kluckhohn

Peabody

Museum

Papers (1952)

Definition of culture.

Culture as products of

past actions that

conditions future actions.

Consists of patterns of

and for behaviour,

traditional ideas and

attached values.

Culture Global

Marketing

Management

Masaaki

Kotabe,

Kristiaan

Helsen

Book (2001) Definition of culture.

Culture as a learned,

shared, compelling,

interrelated set of

symbols to provide

orientation to members of

society in order to find

solutions for problems

that every society must

solve.

Culture Culture’s

consequences

- International

differences in

work-related

values

Geert

Hofstede

Book (1984) Definition of culture.

Culture as the mental

programming of the mind

that differentiates one

group of people from

another.

Culture A Theory of

Cultural

Values and

Some

Implications

for Work

Shalom H.

Schwartz

Applied

Psychology:

An

International

Review

(1999)

Theory of types of values

on which cultures can be

compared.

3 issues to be solved in

every society: relation

between individual and


group, management of

social interdependencies,

relation of humans to the

natural and the world.

7 value types:

Conservatism,

intellectual autonomy,

affective autonomy,

hierarchy, egalitarianism,

mastery and harmony.

Culture Cultures and

Organizations

- Software of

the Mind

Geert

Hofstede,

Gert Jan

Hofstede,

Michael

Minkov

Book (2010) Identification of 6 cultural

dimensions to compare

cultures.

Dimensions: Power

distance, uncertainty

avoidance, masculinity,

individualism, long-term

orientation and

indulgence.

Culture

&

Globali-

sation

Convergence

and

divergence in

consumer

behaviour:

implications

for

international

retailing

Marieke de

Mooij,

Geert

Hofstede

Journal of

Retailing

(2002)

Proofs divergence of

consumer behaviour.

For some durable goods

and new technologies, at

macro level (ownership of

products per 1000

people), countries

converge, but they

diverge with respect to

how people tend to use

these products.

2.3 Research Model

In this section, the development and structure of the research model used for answering

the research question mentioned above are displayed.

The research model in question is the Unified Theory of Acceptance and Use of

Technology 2 (UTAUT2) by Venkatesh et. al (2012). Its goal is to explain technology

adoption in a consumer context. It is an extension of the UTAUT model created in

2003 (Venkatesh, Morris, Davis, & Davis, 2003). By adding three more determinants


of behavioural intention and/or use behaviour the model was made applicable for

consumer contexts (Venkatesh et al., 2012). Both models are based on the Technology

Acceptance Model (TAM) (Davis, 1989) and its successor the TAM2 (Venkatesh &

Davis, 2000).

As mentioned above in the literature review on mobile commerce, a concept

commonly mentioned in relation to mobile commerce is the perceived risk that hinders

consumers to make use of mobile commerce. Therefore, I will integrate this concept

in my research model and the hypotheses.


TAM Perceived

Usefulness,

Perceived

Ease of Use,

and User

Acceptance of

Information

Technology

Fred D.

Davis,

Ann Arbor

MIS

Quarterly

(1989)

The purpose of the

Technology Acceptance

Model is to predict and

explain use of

technology.

Perceived usefulness and

perceived ease of use are

found to be fundamental

determinants of system

use.

TAM2 A Theoretical

Extension of

the

Technology

Acceptance

Model: Four

Longitudinal

Field Studies

Viswanath

Venkatesh,

Fred D.

Davis

Management

Science

(2000)

Extension of the TAM.

Integrates subjective

norm, image, job

relevance, output

quality, result

demonstrability as

additional determinants

of perceived usefulness.

UTAUT User

Acceptance of

Information

Technology:

Toward a

Unified View

Viswanath

Venkatesh,

Michael G.

Morris,

Gordon B.

Davis,

Fred D.

Davis

MIS

Quarterly

(2003)

Unified model

integrating elements

from 8 different user

acceptance models.

Identifies 3 direct

determinants of

behavioural intention

(performance

expectancy, effort

expectancy, and social

influence) and 2 direct


determinants of use

behaviour (intention and

facilitating conditions).

Experience,

voluntariness, gender,

and age have moderating

influences.

UTAUT2 Consumer

Acceptance

and Use of

Information

Technology:

Extending the

Unified

Theory of

Acceptance

and Use of

Technology

Viswanath

Venkatesh,

James Y.

L. Thong,

Xin Xu

MIS

Quarterly

(2012)

Extends UTAUT to a

consumer context.

Integrates hedonic

motivation and price

value as determinants of


and habit as a

determinant of


and use behaviour.

3. Hypotheses development

3.1 Performance expectancy and culture

Performance expectancy was earlier defined as the degree to which the consumer believes that

the use of a particular technology will provide him or her with benefits in the performance of

certain activities. According to Basabe and Ros (2005, p. 191), people from individualist

cultures put a high emphasis on personal achievement. Therefore, these cultures presumably

value performance higher than individuals from collectivistic cultures do. The United

Kingdom and the Netherlands score much higher on individualism than Germany and France.

I, therefore, hypothesise that the relationship between performance expectancy and

behavioural intention will be stronger for consumers from the United Kingdom and the

Netherlands compared to those from Germany and France. Thus:

H1a: The relationship between performance expectancy and behavioural intention to use

mobile shopping will be stronger for consumers from the United Kingdom compared to those

from Germany.


H1b: The relationship between performance expectancy and behavioural intention to use


from France.

H1c: The relationship between performance expectancy and behavioural intention to use

mobile shopping will be stronger for consumers from the Netherlands compared to those from

Germany.

H1d: The relationship between performance expectancy and behavioural intention to use


from France.

3.2 Effort expectancy and culture

Effort expectancy is defined as the degree of ease the consumer associates with the use of a

technology. According to Smith, et al. (2013, p. 330), consumers from more individualistic

cultures desire personal convenience stronger than consumers from less individualistic

cultures. The United Kingdom is the most individualistic out of the four countries researched,

followed by the Netherlands. In addition, the United Kingdom also scores the highest on

Schwartz’s mastery dimension, which according to Smith, et al. (2013, p. 330) speaks for a

higher appreciation of technology that is easier to use or at least is perceived as such by the

consumer. Hence, I hypothesise that:

H2: The strength of the relationship between effort expectancy and behavioural intention to

use mobile shopping will be the strongest for consumers from the United Kingdom.

3.3 Social influence and culture

Social influence is the extent to which individuals feel that other people who are important to

them think that they should use the technology. According to Markus and Kitayama (Markus

& Kitayama, 1991, p. 225), the thinking of individuals with interdependent selves is much

more influenced by the consideration of what important others think and what their reactions

might be. This concept is addressed in Schwartz’s conservatism/autonomy dimension. There

are two types of autonomy according to Schwartz – affective and intellectual autonomy.

Intellectual autonomy fits better in this context as it includes the values freedom and curiosity

as well as self-determination, meaning that individuals are encouraged to make decisions

independently. Germany scores the highest on intellectual autonomy and the lowest on

conservatism, which independent selves, it can be assumed that potential reactions and

thoughts of others do not have a major influence on their behaviour. France, on the other hand,

scores the highest on conservatism and the lowest on intellectual autonomy, which leads to the


assumption that the behaviour of individuals in France is more dependent on other people’s

reactions and thinking than in the other researched countries. I, therefore, hypothesise that the

strength of the relationship between social influence and behavioural intention to use mobile

shopping will be the strongest for French consumers and the weakest for German ones. Thus:

H3a: The strength of the relationship between social influence and behavioural intention to

use mobile shopping will be the strongest for consumers from France.

H3b: The strength of the relationship between social influence and behavioural intention to

use mobile shopping will be the weakest for consumers from Germany.

Hofstede’s individualism versus collectivism dimension is not taken into account here because

it is more concerned with the goals of the individual versus the goals of the group and, thus,

does not address social influence the way Schwartz does.

3.4 Facilitating conditions and culture

Facilitating conditions deal with the availability of support for the use of the technology as

perceived by the consumer. The availability of support could reduce insecurities concerning

the usage of a technology. Facilitating conditions could serve to reduce perceived uncertainty.

Thus, the influence that facilitating conditions have on behavioural intention and use

behaviour should be stronger for cultures that are more uncertainty avoidant. France scores by

far the highest on the uncertainty avoidance dimension by Hofstede, while the United

Kingdom has the lowest score. I, therefore, hypothesise that:

H4a: The relationship between facilitating conditions and behavioural intention to use mobile

shopping will be the strongest for consumers from the United Kingdom.

H4b: The relationship between facilitating conditions and behavioural intention to use mobile

shopping will be the weakest for consumers from France.

H4c: The relationship between facilitating conditions and actual use of mobile shopping will

be the strongest for consumers from the United Kingdom.

H4d: The relationship between facilitating conditions and actual use of mobile shopping will

be the weakest for consumers from France.

3.5 Hedonic motivation and culture

Venkatesh et al. (2012, p. 483) determined hedonic motivation, which is the pleasure a person

obtains from using a technology, as a determinant of behavioural intention to use a technology.

Pleasure is addressed in Schwartz’s value orientation affective autonomy as well as in


Hofstede’s dimension indulgence versus restraint. France scores low on affective autonomy

as well as on indulgence versus restraint, while the Netherlands and the United Kingdom score

high. Only Germany has contradicting scores on the two dimensions with a low score on

indulgence versus restraint and a high one on affective autonomy. I, therefore, hypothesise

that:

H5: The strength of the relationship between hedonic motivation and behavioural intention to

use mobile shopping will be the weakest for consumers from France.

3.6 Price value and culture

Price value was defined as the consumers’ cognitive tradeoff between the perceived benefits

of a technology and the monetary costs for using them. There have not been any comments on

cultural differences for the price value concept. Additionally, a tradeoff between benefits and

costs might be a more personal thing, depending more on things, such as income of the

individual, than culture. I, therefore, hypothesise that:

H6: The strength of the relationship between price value and behavioural intention to use

mobile shopping will be the same for consumers from France, Germany, the Netherlands, and

the United Kingdom.

3.7 Habit and culture

Habit was defined as the extent to which people tend to perform behaviours automatically

because of learning. For this concept, too, no cultural differences have been explored in

literature. In addition, habit once again is positioned on the individual level and not on the

cultural. Thus, I hypothesise that:

H7a: The strength of the relationship between habit and behavioural intention to use mobile

shopping will be the same for consumers from France, Germany, the Netherlands, and the

United Kingdom.

H7b: The strength of the relationship between habit and actual use of mobile shopping will be

the same for consumers from France, Germany, the Netherlands, and the United Kingdom.

3.8 Perceived risk and culture

I added perceived risk to the research model because it is an issue that is constantly quoted in

relation to the adoption and use of mobile shopping. The perception of risk and its influence


is dealt with in Hofstede’s cultural theory. According to Hofstede, cultures that score high on

the uncertainty avoidance dimension tend to take less risks than other cultures that score lower

on this dimension. This is because risk perceptions of individuals from cultures that are highly

uncertainty avoidant are more influenced by potential losses while the risk perceptions from

people lower on the uncertainty avoidance dimension are more affected by potential gains

(Bontempo, Bottom, & Weber, 1997, p. 483). Out of the four researched countries, France

scores by far the highest on the uncertainty avoidance dimension. The United Kingdom, on

the other hand, is positioned on the opposite side of the dimension and, thus, is the least

uncertainty avoidant country. In line with the first research model proposed that defines

perceived risk as a determinant of behavioural intention, I, hence, hypothesise that:

H8.1a: The strength of the relationship between perceived risk and behavioural intention to

use mobile shopping will be the strongest for consumers from France.

H8.1b: The strength of the relationship between perceived risk and behavioural intention to

use mobile shopping will be the weakest for consumers from the United Kingdom.

In line with the second research model proposed, according to which perceived risk acts as a

moderator on the relationship between behavioural intention to use a technology and use

behaviour, the relationship between behavioural intention and use behaviour is the weakest for

French consumers and the strongest for British ones. This is because consumers in the United

Kingdom are the least uncertainty avoidant out of the four researched countries. Therefore,

they are not as risk averse as the other cultures and the influence of perceived risk on the

relationship between behavioural intention and use behaviour is smaller. The opposite is true

for France, which is the country with the highest uncertainty avoidance. Perceived risk will

therefore have the highest impact on the relationship between intention to use and actual use

for French consumer. Thus, I hypothesise:

H8.2a: The strength of the relationship between behavioural intention and use behaviour will

be the weakest for consumers from the France.

H8.2b: The strength of the relationship between behavioural intention and use behaviour will

be the strongest for consumers from the United Kingdom.


4. Methodology

The data needed to answer the research question will be collected through an online

questionnaire that will be sent to students in the respective countries (France,

Germany, the Netherlands and the United Kingdom). By approaching the

administrative staff of universities and asking them to send it to the students a lot of

potential participants can be reached who can then fill out the online survey. In case

that there will be problems with the ethical commission of some universities, I will

distribute the questionnaires via facebook. The questionnaire will be based on

quantitative research measures, mainly using Likert scales because it was also used for

the development of UTAUT2 (Venkatesh et al., 2012).

The results from the survey will be analysed employing partial least squares

regression. The method will be applied with the help of the SmartPLS software

application.

5. Overview of chapters

Abstract

Table of content

Table of figures

Table of abbreviations

1. Introduction

2. Literature Review

2.1 Definitions: In this part definitions of m-commerce, culture and cultural

differences will be given.

2.2 Cultural Frameworks: In this section the cultural frameworks of Hofstede and

Schwartz will be explained.

2.3 Research model: This part will be dedicated to the explanation of the development

and structure of UTAUT2.

3. Hypotheses development: In this section the hypotheses will be developed on the

basis of the literature review.


4. Research methodology: This section will be dedicated to explaining how the

research will be executed.

5. Analysis of results: This part will be dedicated to the analysis of the results retrieved

from the survey.

6. Implications: The practical and theoretical implications of the findings will be

outlined.

7. Conclusion and limitations: A final conclusion will be drawn and the limitations of

the thesis will be mentioned.

Bibliography

Appendix

6. Work plan

Date To Do Description

01.10.-21.10.2013 General research Gather information on the topic and

write Exposé

22.10.-10.11.2013 Exposé Complete and correct Exposé,

conduct

11.11.-01.12.2013 Theory Finish literature review and

theoretical basis of the thesis

02.12.2013-

05.01.2014

Methodology,

intermediate presentation

Create survey and finish methodology

part, create intermediate presentation

06.01.-02.02.2014 Survey, intermediate

report

Conduct survey and prepare the

intermediate presentation

03.02.-02.03.2014 Analysis Analyse the survey results and create

figures

03.03.-30.03.2014 Implications, conclusion

and limitations

Finish the implications part, draw

conclusions and list limitations

31.03.-deadline Finishing, final

presentation

Finalise and review the master thesis,

prepare the final presentation


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