A cross-cultural study : the impact of individualism-collectivism on consumer behavior towards online coupons.

Abstract

Cultural differences are known to effect consumer behavior and attitude. Past researches have studied their effect on the acceptance of traditional coupons and internet shopping. However, little empirical research exists on the effectiveness of online coupons. Online coupons are not only digital versions of traditional coupons; these coupons utilize group-buying in order to increase discount rates up to 80%.

This study examines the effects of cultural differences on consumer behavior in the purchase of online coupons. In particular, one of Hofstede’s cultural dimensions, individualism-collectivism, is used to investigate these effects. Respondents were chosen and subjected to an internet-administered survey, which included questions about their purchase intention of a manipulated online coupon, their perception of online coupons in general, and other behavior involved in the purchase of online coupons.

The findings of this study indicate that consumers are differentially influenced by (1) product scarcity induced by urgency from time left and (2) product popularity indicated by the number of people who brought the coupon. Compared to collectivists, individualists are more likely to purchase online coupons if lesser people had bought the deal beforehand and if a shorter time remains to buy the deal. This study also reveals the differences on how consumers value group-buying deals. Collectivists’ purchase intentions are influenced by discount percentage and information search, whereas, individualists are influenced by their perception of the value of the deal.