Influence of thinking tendencies on online transaction of hybrid retailers

Abstract

This study examines cross-cultural differences in thinking styles in the context of hybrid retailers (i.e., land-based retailers that augment their retail operations by creating online stores). Prior research indicates that consumers transfer retailer-related associations from hybrid retailers' physical to online stores and that trust in online stores is a critical factor in the online retail environment. Extending such findings, this study uses respondents from South Korea and the United States as representatives of holistic- and analytic-thinking cultures, respectively, and tests whether differences in thinking tendencies influence the transference of trust from hybrid retailers' land-based stores to their online stores. The study uses structural equation modeling to test online consumer behavior models and group differences. The results suggest that the role of trust is more pronounced in holistic-thinking cultures (e.g., East Asians) than in analytic-thinking cultures (e.g., Westerners). The results also show that transference of trust from hybrid retailers' land-based to online stores and the relationship between trust in and attitude toward hybrid retailers' online stores are greater for holistic thinkers than for analytic thinkers. The findings hold implications for research and practice and suggest directions for future research.