Uncertainty Avoidance and Consumer Perceptions of Global e-Commerce Sites: A Multi-Level Model

Online purchasing is a decision-making process that involves inherent uncertainty. Yet consumer tolerance for uncertainty differs across cultures, requiring e-vendors to decide whether to adapt websites to different cultures when operating globally. We examine the effect of Hofstede’s cultural dimension of uncertainty avoidance (UA) on consumer perceptions of e-loyalty. Viewing information quality, trust, and system quality as uncertainty reduction mechanisms, UA is hypothesized to moderate relationships involving these constructs in a recognized model of IS success. Specifically, we posit that relationships involving these constructs will be stronger for consumers from high UA cultures. Using data drawn from over 3,500 actual consumers from 38 different countries, and controlling for the impact of other cultural dimensions, results suggest that UA moderates the effects of information quality on perceived usefulness, and of trust on e-loyalty, but not system quality relationships. We discuss practical implications of our research, in regard to designing websites intended for global use. Introduction Online purchasing entails a decision-making process where consumers visit websites to gather information, compare alternatives, and make a decision as to what to purchase, what features to include, at what price, and from which vendor. Each of these actions aims to reduce uncertainty about product features, alternatives, prices, quality, delivery, service, and vendor trustworthiness. Due to the computer-mediated nature of such transactions, consumers must rely on the website to reach their decision rather than on actual, physical interactions with the product and vendor. Thus, the decision-making process may entail substantial uncertainty in regard to product characteristics and their fit to one’s needs (especially for non-commodity products or services), and whether a vendor is trustworthy and will deliver the product as promised. Poorly structured websites that are difficult to navigate may also create uncertainty regarding how to locate relevant information and complete a transaction.