3.4.1 Country-of-origin related pictures
In electronic commerce there is a lower sense of sociability and physicality than in conventional shopping. In order to address this problem, research has evaluated the effect of social presence (Steinbr¨uck et al., 2002) and physical presence (Park et al., 2005) on the perception of the online store.
Country presence
In the case of cross-border electronic commerce, However, the influence of presence as related to country has not been previously considered and there is no research on how to reduce a perception of distance between countries.
In the case of cross-border electronic commerce, the fact that the online store is from another country brings an added dimension to the perception of distance. This distance between the consumer and the foreign vendor can also result in a lower sense of the country-of-origin of the online store. Therefore, the factor of country presence, or the sense of the country of the online store, is proposed. Country presence can be defined as the sense of a website’s country-of-origin transmitted to the user, based on the type of transportation ”in which another place and the objects within it are transported to the user” (Lombard and Ditton,1997), where place refers to the country. This definition also considers the limitations of applying the concept of presence in an electronic commerce context, in a similar manner as previous research in this area (Cyr et al.,2007,2009).
The feeling of presence can be influenced by the content that is being represented by the medium (Steuer,1992;IJsselsteijn et al.,2000), such as people, places, events or
Chapter 3. Theoretical Framework 21 interactions. In the case of electronic commerce, this may be accomplished through the design of the website, as user response can be manipulated by modifying visual elements of the design (Kim and Moon, 1998). For example, visual content such as photos of people (Steinbr¨uck et al., 2002) or human pictures (Hassanein and Head, 2007; Cyr et al., 2009) can be included in the design to improve social presence in a website.
Similarly, country-related content in pictures may be able to increase country presence in the foreign online store.
Hypothesis 3.1: Displaying country-related pictures in a foreign online store results in higher country presence than displaying generic pictures.
An online store can be considered a communication medium. Increased richness in communication media is related to increased understanding of the message (Daft et al.,1987). Physical presence and graphic symbols are cues that improve richness in communication media (Daft et al., 1987). The sense of presence can decrease uncertainty about the vendor by increasing information richness, and therefore also increasing understanding. By increasing information richness, social presence can improve trust in a website (Hassanein and Head,2007;Cyr et al.,2007,2009;Karimov et al., 2011). For Japanese users in particular, information about the vendor is an important consideration for trust (Cyr et al., 2009), otherwise they are more likely to avoid purchase. In a scenario of initial trust where the user does not know of the website, and with the added characteristic of a cross-border context, providing the consumer with added knowledge and information about the vendor in the form of country presence may have a positive effect on trust.
Hypothesis 3.2: Country presence has a positive effect on trust in the foreign online store.
By transporting the consumer, a sense of presence can increase the feeling of closeness and emotional investment, thereby increasing the perception of visual appeal of a website. A high social presence condition leads consumers to describe the design of a website as interesting and appealing; on the contrary, in a lower social presence condition they described it as plain, boring and unappealing (Hassanein and Head, 2007; Cyr et al., 2007). Increased physical presence in a website can also influence the aesthetic dimension of consumer attitude, such as the perceived attractiveness and visual appeal of products (Suh and Chang,2006). By increasing country presence, the consumer may feel more emotionally involved in the foreign online store and perceive it as having an attractive design. Therefore, it is clear that presence influences not only
the enjoyment of the shopping experience, but also the perceived aesthetic appeal of the design of the website.
Hypothesis 3.3: Country presence has a positive effect on visual appeal of the foreign online store.
These hypotheses are tested in study 3 on the effect of country-related pictures, detailed in Chapter 5.
3.4.2 Country-of-origin image
As mentioned in Chapter2, the literature search found no previous quantitative studies on the effect of country-of-origin image on online stores. The cognitive and affective image of a country has been found to affect the perception of products (Verlegh and Steenkamp, 1999) and services (Pecotich and Ward, 2007). However, their effect on the evaluation of foreign online stores has not been empirically validated previously.
Neverthless, common points can be found from the studies on products, services and other targets. The hypotheses that will be presented are based in the theoretical findings related to other targets of evaluation, with an indication of how the effect of country-of-origin is relevant to this new context.
The structure of country-of-origin image considered is one where the cognitive and affective image dimensions both influence the evaluation and intention towards the target (Roth and Diamantopoulos,2009), instead of a hierarchical image structure, where a second-order country-of-origin image factor is composed of the cognitive and affective factors (Laroche et al., 2005). There are two reasons for this choice. First, a hierarchical model implies that the first-order factors are highly correlated with each other. However, this may not be true for all countries. One dimension, affective or cognitive, may be stronger and this could change depending on the country-of-origin of the consumer. Second, one of the reasons for using hierarchical models is to improve parsimony. However, asRoth and Diamantopoulos(2009) indicates, parsimony is not the goal of all studies, and the use of the type of structure should be adequate for those aims.
In the case of the study, the aim is to evaluate the effects of the country-of-origin image dimensions separately. Nevertheless, the two dimensions of the country-of-origin image are not completely unrelated, with the cognitive component influencing the affective component (Brijs, 2006), since emotional response to the country is to some extent a result of the processing of positive characteristics of the country.
Chapter 3. Theoretical Framework 23 Hypothesis 4.1: Country cognitive image has a positive effect on the country affective image.
Country-of-origin image has been shown to affect the evaluation of external perceptions of product, such as design and style Nagashima (1970, 1977); Roth and Romeo (1992); Leonidou et al. (2007). Cognitively, since an appealing design characteristic is a part of the quality of the website (Loiacono et al.,2002), it implies a certain ability of the online store to realize a competent design. Cognitive characteristics of country can affect the perception of quality in products (Hamzaoui and Merunka, 2006), as in the case of Germany, for example. Visual appeal, as an aesthetic component, is not only related to quality, but also to the hedonic dimension of online stores (Childers et al.,2001) and to affective responses (Cyr et al.,2010).
Hypothesis 4.2: Country affective image has a positive effect on visual appeal of the foreign online store.
Hypothesis 4.3: Country cognitive image has a positive effect on visual appeal of the foreign online store.
In an initial trust situation, the evaluation of the trustworthiness of the website depends both on intrinsic and extrinsic factors (Gefen et al., 2008). In situations of initial trust, consumers have to evaluate the online store based on information other than experience, such as the general situation of electronic cmmerce or trust in institutions that support electronic commerce (Grabner-Kr¨auter and Kaluscha, 2003).
Consumers decide to trust a particular online store based on their beliefs that there are the assurances and infrastructure that is in place, which may be trustworthy (McKnight et al.,2002b), when they lack other information. This perception has some influence on whether they perceive a particular online store as trustworthy (Mcknight and Chervany,2001).
In the case of cross-border electronic commerce, the institutional trust factors are not the same as those that exist for the domestic market. There is no centralized authority, and consumers may be less certain, or less knowledgeable, about international institutions for protection of consumers, of institutions within their country or in the country of the online store (Commission of the European Communities, 2009b). In the absence of such institutional support, other extrinsic factors may become more relevant. Country-of-origin image is extrinsic or contextual information that influences perception of trust about products (Jim´enez and San Mart´ın, 2010; Safari, 2012). In particular, the cognitive dimension of the country-of-origin image has an effect on trust.
The infrastructure and economic advancement of the country give a good indication
that it is possible to trust in the performance of the product (Verlegh and Steenkamp, 1999). Considering that trust as defined for an online store is composed of a competence component, the cognitive image may influence this belief. In addition, trust in an online store is also composed of a belief of the goodness of will or integrity (McKnight et al., 2002b). A store may be able fulfill an order logistically, but it also may not have the consumer’s best interest or the best ethical practices in their service. The expectation of beneficial behavior can be based on affective responses (Williams,2001).
Hypothesis 4.4: Country affective image has a positive effect on trust in the foreign online store.
Hypothesis 4.5: Country cognitive image has a positive effect on trust in the foreign online store.
Hypothesis 4.6: Country affective image has a positive effect on intention of use of the foreign online store.
The literature on country-of-origin image posits an influence on the intention of buying a product (Jim´enez and San Mart´ın,2012) though literature reviews have that the effect is less stronger than for evaluation (Verlegh and Steenkamp,1999). However, the effect of country-of-origin is increased when there is fewer information about the product or service (Pharr,2005), which fits the situation of initial trust in cross-border electronic commerce of this study.
Hypothesis 4.7: Country cognitive image has a positive effect on intention of use of the foreign online store.
These hypotheses are tested in study 4 on the effect of country-of-origin image, detailed in Chapter 5.
Chapter 4
Methodology
This chapter introduces the data collection process, measurement instrument and experiment design used in the studies of this dissertation, as well as the statistical methods used in the analysis of the data.
Only the methodology shared by all studies is described in this chapter; additional details which apply to each particular study are explained in the next chapter.