How Does The Cultural Traits Affect The Indian Subcontinent

Chapter-1 Introduction
THE
ROBERT GORDON
UNIVERSITY
ABERDEEN
FACULTY OF MANAGEMENT
Aberdeen Business School
TITLE: AFFECT OF COLLECTIVISM VS. INDIVIDUALISM, TRUST

AND
SOCIAL INFLUENCE ON INDIAN SUBCONTINENT STUDENTS
STUDYING IN U.K ABOUT ONLINE BUYING BEHAVIOUR: A
NON-PARAMETRIC STUDY.
Name: Amlan Ghosh.
Submission Date: 14.12.2007
Supervisor: Neil O Connon
Aim: How Does the Cultural Traits Affect the Indian Subcontinent
Students Regarding Online Buying?
Objectives:
1. To find out the factors that could be responsible for imposing

a positive influence on the family members of the students
from Indian Subcontinent studying in U.K.
2. To establish correlations between the cultural and non
cultural factors affecting online buying behaviour of Indian
Subcontinent students studying in U.K.
Signed:
Total word count: 20,583 (approx)
1
THE
ROBERT GORDON
UNIVERSITY
ABERDEEN
AFFECT OF COLLECTIVISM VS. INDIVIDUALISM, TRUST AND

SOCIAL INFLUENCE ON INDIAN SUBCONTINENT STUDENTS
STUDYING IN U.K ABOUT ONLINE BUYING BEHAVIOUR: A
NON-PARAMETRIC STUDY.
Amlan Ghosh.
The Robert Gordon University, Aberdeen, UK
Aberdeen Business School
MSc Management
Submission Date: 14.12.2007
ABSTRACT
An adoption of conventional model developed by Pavlou and Chai (2002)
is used to identify the affect of Culture (Collectivism vs. Individualism) on
the online buying behaviour of the Indian Subcontinent Students (India,
Pakistan and Sri-Lanka) studying in U.K. A model containing only
Collectivism vs. Individualism is correlated with other non cultural factors
(taken from models like TRA, TPB, TAM etc.) in order to find out the
interrelations to understand the Internet Psychology of the subjects. To
find out the influence of their changed Psychology (if at all) towards
Online Buying on their family members is also an objective of this
research.
A questionnaire survey on 82 such students reveals that Collectivism

affects Online Transaction Intentions, but not directly. It affects the
Societal Norm which in turn affects the Transaction Intentions. It was also
revealed that Trust generates stronger influences on the family members
of these students. These results were further verified using methods from
Cognitive Psychology by interviewing 4 randomly selected students.
2
Keywords: Online Buying, Conceptual Model, Non-Parametric Study,

Collectivism and Trust.
Acknowledgement
I would like to convey my heartiest gratitude to all those who
have helped me to complete this dissertation. I want to extend
my immense gratitude to The Aberdeen Business School, Robert
Gordon University for providing such a wonderful and exciting
learning environment. I would also like to thank my supervisor Mr.
Neil O Connon without whom this research wouldn’t have been
possible. His regular and prompt feedbacks have guided this
research to its finishing. His inspiring support and encouragement
has made this research possible.
I would also like to thank all the participants who have taken part
in the survey. I extend special appreciation to Suparna, Sanjana,
Parashar and Suchika for their kind support and the Interview.
Thank you everyone.
3
List of Contents
Chapter-1
1. Introduction………………………………………………………………1
Chapter-2
2. Literature
Review………………………………………………………..7
2.1 Development of e-Commerce in
Subcontinent………….11
2.1.1 Development of e-Commerce in
India……………11
2.1.2 Development of e-Commerce in
Pakistan……….18
2.1.3 Development of e-Commerce in Sri
Lanka………21
2.2 The Culture
Dependency………………………………………..24
2.3 Theory of Reasoned
Action…………………………………….25
2.4 Introduction of Theory of Planned
Behaviour…………..27
2.5 Introducing Technology Acceptance
Model………………30
2.6 Unified Theory of Acceptance and Use of
Technology..32
2.7 The Conceptual
Model……………………………………………33
2.8 The Culture
Code…………………………………………………..36
Chapter-3
3. Research
Methodology………………………………………………..38
3.1 Justification of the Proposed Model
Adopted…………….38
3.1.1
Attitude………………………………………………………39
3.1.2 Societal Norm and Social
Influence………………..42
3.1.3 Perceived Behavioural
Control……………………….44
4
3.1.4 Influence on Family

Members………………………..46
3.1.5 Social Influence and
Attitude…………………………47
3.2 Justification of the second Model
Adopted………………..48
3.3 How the adopted models will answer the research
question? ……………………………………………………………..49
3.3.1 The Primary
Research ………………………………….49
3.3.2 The Secondary
Research ………………………………57
3.4 Do the models adopted answer the research
question?.57
Chapter-4
4. Data Analysis and

Presentation……………………………………..58
4.1 Describing the
Data…………………………………………………58
4.2 Describing the Statistical Software
Used……………………58
4.3 Describing and Justifying the Tests
Used…………………..59
4.4 Presenting the Analysing the Proposed
Hypothesis…….62
4.4.1 The First
Hypothesis………………………………………62
4.4.2 The Second
Hypothesis………………………………….68
4.4.3 The Third
Hypothesis…………………………………..71
4.4.4 The Fourth
Hypothesis…………………………………75
4.4.5 The Fifth
Hypothesis……………………………………76
4.4.6 The Sixth
Hypothesis…………………………………...83
4.4.7 The Interview
Interpretation………………………..88
Chapter-5
5.
Discussion………………………………………………………………….91
5
5.1 The
Research….……………………………………………………..91
5.2 Some Interesting
Facts…………………………………………..93
5.3 Relation to Previous
Works……………………………………..94
Chapter-6
6. Conclusion and
Recommendation…………………………………..97
Reference……………………………………………………………………....
99
List of Tables
Table-1. Internet Users vs. Population in India…………17
Table-2. Internet Users vs. Population in Pakistan…….19
6
Table-3. Internet Users vs. Population in Sri-Lanka……23

Table-4. Case Processing Summary………………………….62
Table-5. The Crosstabulation…………………………………..63
Table-6. The Chi-Square Test…………………………………..63
Table-7. Descriptive Statistics…………………………………64
Table-8. Pearson Correlations………………………………….65
Table-9. Spearman Correlation………………………………..66
Table-10. Kendall Tau’s Correlations………………………..66
Table-11. Validation Table………………………………………68
Table-12. Collectivist vs. Individualist * Attitude
Crosstabulation……………………………………….68
Table-13. Chi-Square Test……………………………………….69
Table-14. Pearson Correlation Coefficient………………….69
Table-15. Spearman’s Correlation Coefficient ……………70
Table-16. Kendall-Tau’s Correlations …………………………..70
Table-17. Validation Table ………………………………………71
Table-18. Collectivist * Societal Norm
Crosstabulation ……………………………………….71
Table-19. Chi-Square Tests………………………………………72
Table-20. The Pearson Coefficient…………………………….73
Table-21. The Spearman Correlation Coefficient…………73
Table-22. Kendall Tau’s Correlations…………………………74
Table-23. Validation Table ……………………………………….75
Table-24. Trust * Perceived Control
Crosstabulation ………………………………………..75
Table-25. Chi-Square Tests……………………………………….76
Table-26. Pearson Correlations………………………………….76
Table-27. Spearman’s Correlations…………………………….77
Table-28. Kendall Tau’s Correlations………………………….77
Table-29. Case Processing Summary………………………….79
Table-30. Trust * Influence on Family Members
Crosstabulation…………………………………………79
Table-31. Chi-Square Test…………………………………………80
Table-32. Descriptive Statistics………………………………….81
Table-33. Pearson Correlation Coefficient……………………81
Table-34. Spearman’s Correlation Coefficient………………82
Table-35. Kendall Tau’s Coefficient…………………………….82
Table-36. Validation Table…………………………………………84
Table-37. Attitude*Social Influence
Crosstabulation…………………………………………..84
Table-38. Chi-Square Test………………………………………….85
Table-39. Descriptive Statistics…………………………………..85
Table-40. Pearson Coefficient………………………………………..85
Table-41. Spearman’s Correlation Coefficient………………….86
Table-42. Kendall Tau’s Correlation………………………………..87
Table-43. The Interview………………………………………………..88
7
Table-44. Hypothesis
Snapshot………………………………………90
List of Figures
Figure-1. THE INTERNET USER’S FUNNEL………………………..13
8
Figure-2. PERCENTAGE OF ACTIVE INTERNET
USERS……………………………………………………………13
Figure-3. PERCENTAGE OF PC OWNERS HAVING
INTERNET ……………………………………………………..14
Figure-4. GROWTH OF ACCESS POINTS OF INTERNET
USAGE …………………………………………………………..15
Figure-5. SIX DEMOGRAPHICS USING INTERNET IN
INDIA…………………………………………………………….15
Figure-6. INTERNET ACTIVITIES BY
INDIANS…………………..17
Figure-7. GROWTH OF INTERNET USAGE
SNAPSHOT………….18
Figure-8. INTERNET USAGE AND HUMAN DEVELOPMENT
INDEX…………………………………………………………….20
Figure-9. ICT INFRASTRUCTURE
DEVELOPMENT………………..20
Figure-10. PERCENTAGE OF DIAL UP’S vs. ISDN IN SRI-
LANKA……………………………………………………………22
Figure-11.
TRA ……………………………………………………………...27
Figure-12. THEORY OF PLANNED
BEHAVIOUR…………………….28
Figure-13. TECHNOLOGY ACCEPTANCE
MODEL……………………31
Figure-14. UNIFIED THEORY OF ACCEPTANCE AND
USE OF
TECHNOLOGY……………………………………….32
Figure-15. THE CONCEPTUAL MODEL OF PAVLOU
AND
CHAI……………………………………………………….35
Figure-16. THE ADOPTED
MODEL ……………………………………..39
Figure-17. FACTORS AFFECTING
ATTITUDE………………………..40
Figure-18. FACTORS AFFECTING SUBJECTIVE
NORM……………43
Figure-19. FACTORS AFFETING
PBC..................…………………..45
Figure-20. TRUST AND INFLUENCE ON FAMILY MEMBERS……
46
9
Figure-21. ATTITUDE AND SOCIAL

INFLUENCE……………………47
Figure-22. THE INTERRELATIONSHIP BETWEEN PBC,
TRUST AND
ATTITUDE…………………………………..53
Figure-23. DIFFERENT NON-PARAMETRIC
TESTS…………………60
Figure-24. THE BAR CHART TRUST *
ATTITUDE…………………..64
Figure-25. THE HISTOGRAM (TRUST VS.
ATTITUDE)……………67
Figure-26. BAR
CHART……………………………………………………..72
Figure-27.
HISTOGRAM…………………………………………………….74
Figure-28. HISTOGRAM
TRUST*PC…………………………………….78
Figure-29. BAR CHART TRUST*INFLUENCE ON
FAMILY
MEMBERS…………………………………………….80
Figure-30. HISTOGRAM TRUST*INFLUENCE ON
FAMILY
MEMBERS…………………………………………….83
Figure-31. HISTOGRAM ATTITUDE*SOCIAL
INFLUENCE……….87
10
List of Appendices
A: THE QUESTIONNAIRES
B: SPSS DATA SHEET
C: SPSS VARIABLE SHEET
D: SPSS OUTPUT SHEETS
11
1. Introduction:
In the early fifties, the project RAND was introduced which aided the
researchers to contact from one place to the other. Then it was in 1960
when computers were used for commercial applications. Bank of America
was the first too use it for commercial purpose. The main notion of
internet was designed by APRANET, which was formed by the United
States Department of Defence and was regarded as the world’s first
operational package switching network. In 1970 the APRANET developed
the Network control protocol. In late 1970’s and 80’s businesses extended
their computing power by sending and receiving information electronically
via EDI (Electronic Data Interchange). Thereby, eliminated paperwork and
human intervention. (E-Commerce Guide’s Ask the Experts, 1998).
Today’s reformation of EDI is through internet to reduce the cost of
networking by eliminating old system’s private network and by expanding
reach to include more businesses in supply chain. After that in 1984 ASC
X 12 standards established a means of transferring data whose
misutilisation leads to popularity of e-commerce.
But e-commerce relating to shopping was only open since 1991 when
internet was opened to commercial use. And since then, the power of
buying products online has been a gift to the customers. The origin of
Napster helped in gaining more popularity in the field of e-commerce. The
next giant leap was the incident of merging between AOL and Time
Warner. This was a major hit and it was referred to as the E-age. The
companies were thinking of various innovative ways to reach nearest to
the customers, so that the customers feel safe in transacting through
online. But suddenly the hackers attack to the most popular sites like
yahoo, msn, eBay, and Amazon etc, slightly discouraged the customers
from holding online transfers. Initially the e-commerce market was a
monopolistic market since statistics say tat the companies concerned with
these business sold 80% routers and 90% of web browsers but this figure
showed a drastic downfall from 160 to 14 especially in the US market. It
was seen that the Asia and Pacific accounted for a 46% of the total online
subscribers in the whole world. In the later half of the report, we will
12
discuss about the scope of ecommerce in the Indian, Srilankan, or

Pakistan market and the detailed of it in the statistical form. Till 1997, in
India, internet was introduced to channelize between the government
agencies and various departments with the only purpose of education and
research.
In the late periods of 1995, the VSNL (Videsh Sanchar Nigam Limited)
was emerged which acted as the ISP (Internet service Provider) in all the
four metros in India. It expanded its reach to 100 cities in India with Dial-
up services. Though India has a base of 8,00,000 in 2004, the major
concern was the amount that had been sold in that base. This figure gave
an actual realistic shape after a survey report was published citing the
various category of users and calculated percentage mentioned along with
it and it was seen that a mere 21 million used internets once in a month.
The internet usage stats and telecommunication research showed that
22% of Indians use internet for jobsearch, 14% for banking, and 42% of
the active users use it for emails and IM. Besides this a small figure of 7%
use it for matrimony search, and 7%in stock trading.
The IT development in Pakistan emerged in the year 2000 but the main
purpose for this introduction was mainly facilitating the government in
their work. The common people used internet for information only. None
of the monitory transaction was possible then. The e-merchants handled
their accounts State Bank of Pakistan. Hence the Pakistan government
thought of relocating US $10 billion between the years 2005-2006. In
2005, the figures were about 2.1 million internet subscribers with an
average of 10million users. The main Internet Service Provider (ISP) was
SNDP in the year 1996 yet the largest one was PakNet. The status of e-
commerce in Pakistan is much undeveloped. People have limited usage of
debit cards and Plastic money, very limited online banking, still on the
verge of facilitating e-payments and utility bills. Due to the very low
telephone line penetration, the availability of broad band connection was
quite low.
Look towards Srilanka, as per the reports of their business centres, about
80%of them use internet since last three years which is deciphers a
13
significant growth but on the other hand it is seen that a mere 63% out of
67% of the organisations are availability internet facilities. The availability
of broad band connection is even lower as per the figures seen in the
discussion ahead. Only 75% of the employees are using internets and that
even for les than an hour in each day. The graphical representation
reveals that a major percentage of the population are taking dial-up
connection which covers 66% which implies its significance.
A random survey on e-commerce with 82 people deciphers the

significance of its role. The survey will help to reveal the psychology of the
Asian consumers with respect to the development of e-commerce in the
Asian continents and sub continents. Starting from the online shopping to
e-banking and then to other affairs, it must be updated in such a way that
the process get smoothened. This may boost up the e-business in the
Asian countries. The psychology of these people is commemorated
through various theories.
An interesting question to answer would be “Did the Psychology of the

Students from Indian Subcontinent changed about online buying after
coming here in U.K?” Looking at the scenario of the internet buying
behaviour in the subcontinent a general question might arise “why is it
lagging behind?” Getting the answer could be a tedious job. Moreover, the
amount of time and facilities associated with this answer is huge. The
remarkable point to notice would be to locate whether the culture has got
anything to do with it. Another noteworthy point could be if culture has
really got something to do with it then, the best way to disclose it is to
ask someone who is away from the culture for a considerable amount of
time. Here comes the point. So, the most accessible way to do it is to ask
a good number of these people about the changes. But, in order to
analyse their answers and emotions related with it, a model is required.
There are many models available such as Theory of Reasoned Action,
Theory of Planned Behaviour, Technology Acceptance Model, and UTAUT
and so on.
Starting with Ajzen and Fishbein’s Theory of Reasoned Action (TRA) in
1967, where they for the first time introduced Attitude, Subjective Norm
14
and Behavioural Intention at the same platform. The main point of

introducing this theory was to find out the factors affecting the
Behavioural Intentions of a person. The factors they pointed were Attitude
and Subjective Norm.
But there was still a missing link. They found out it to be the Perceived
Behavioural Control. They also found that there is a common sub factor
affecting these three factors. And that is belief. They disintegrated beliefs
into three types (Behavioural Beliefs, Normative Belief and Control Beliefs)
and associated each with the three factors, Attitude, Subjective Norm and
Perceived Behavioural Control. On this basis they formed a new theory in
1988, The Theory of Planned Behaviour (TPB).
Just a year later in 1999 came Fred Davis, with his theory, The
Technology Acceptance Model (TAM). This was a very competent model
but focussed mainly on the Behavioural Intention only a part of the TRA.
But he neglected the other part that is the Subjective Norm. As the name
suggests, he focussed mainly on the Technological aspects associated with
the Transaction Intentions. He proposed few factors which affected the
Behavioural Attitude. The Main three sub factors affecting Attitude
towards using were Perceived Usefulness, Perceived Ease of Use and
External Factors. Still this model won’t suffice the purpose of this research
as it doesn’t include the cultural traits.
Then came Venkatesh with his model Unified Theory of Acceptance and Use
of Technology (UTAUT) 2003. This theory stands on mainly four functions
which are considered as direct determinants for the usage of behaviour viz.
a) performance expectancy
b) effort expectancy
c) social influence
d) Facilitating conditions.
The following points are these which mediate the impact of these four key
which construct on differentiation and behaviour such as follows:
Gender, age, usage, and voluntaries of usage.
15
But all of them did lack something. And that is the effect of Cultural Traits.
Pavlou and Chai (2002) came up with a conceptual model where they
included three of the cultural traits proposed by Hofstede. Hofstede’s Cultural
Model (1994), proposed five main traits and they were, Power Distance,
Long-Term vs. Short Term Orientation, Individualism/Collectivism, Femininity
vs. Masculinity and Uncertainty Avoidance. In order to devise a model
inculcating the earlier theories with culture, it was necessary to improvise
them within themselves. The idea is simple, if trust can affect the transaction
intentions (online), why can’t Social Influence? Even it might be possible that
the Collectivism can affect Social Influence. So, the need to set a stage for all
these factors to come together had become very important. Since, the
research question in itself is trying to correlate culture with technology
selecting a single trait could be insufficient. At the same time focusing more
on a single cultural trait (out of five as proposed by Hofstede) could find more
and detailed correlations with the other vital factors affecting technology.
Being defined the requirements and the dimensional boundaries of this

research; the quest for such a model was extensive. One way of doing it
in a focused way could be to pick up one of the cultural traits of Hofstede
and mapping (Correlating) it with the other functional variables proposed
by Pavlou and Chai. Pavlou and Chai’s proposed model contained
Collectivism vs. Individualism, Power Distance and Long vs. Short Term
Orientation. This research will only focus on one of them and that is,
Collectivism vs. Individualism. So, in other words, this research will
propose a model focusing on one of the cultural traits proposed by
Hofstede and will try to correlate it with the previous conventional
theories.
The primary research will undergo a questionnaire where the answers

would reveal the correlations. Another way of cross checking the
correlations could be searched in the theories of Cognitive Psychology. A
very exciting work done in this ground is done by Rapaille. He tries to
associate a code which he calls as culture code to every thing. This piece
16
of research will also try to imitate the underlying point. And that is, “the
real answers lie in the subconscious mind”. An interview will reveal
answers from the subconscious mind by asking for giving quick and
prompt answers so that the answers come from the subconscious mind
only.
Another relevant question might arise that “If the Psychology of the
Students from Indian Subcontinents would change then, how would they
try to induce their thoughts or trust in their family members about
transacting online?” This is one of the research objectives of this research.
One of the questions in the questionnaire will deal with this objective.
All the answers would be weighed and evaluated on an ordinal scale

through SPSS.
2. Literature Review:
The internet is a very well known word today. It is probably the greatest
mean of communication now. Looking at the history of internet from 1960
17
Chapter-2 Literature Review
till today, it can be observed that its utility and usage has increased by
many folds and now it has become an important commodity in our lives.
In the early fifties a prevalent computer networking system was based on

the central mainframe method, by allowing the terminals to be connected
via long leased lines. This was called as project RAND, to support
researchers such as Herbert Simon from Pittsburgh, Pennsylvania for
contacting researchers in Santa Monia.
Later in 1960 J.C.R Licklider articulated an idea "A network of such

[computers], connected to one another by wide-band communication
lines" which provided "the functions of present-day libraries together with
anticipated advances in information storage and retrieval and [other]
symbiotic functions.” In 1962, Licklider was appointed as the head of
United States Department of Defence’s DARPA (Defence Advanced
Research Projects Agency) information precesses office. But the main
notion of internet was designed by an agency called ARPANET (Advanced
Research Projects Agency Network) devoloped by United States
Department of Defence and was the world’s first operational packet
switching network, and the predeccesors of internet. (www.arpanet.com)
Although the e-mail, file transfer and voice traffic came in much late,
E-mail : Came in 1971, Ray Tomlinson of BBN.

File Transfer : In 1973, by ARPANET.
Voice Traffic : In 1973, by ARPANET.
In October 1970 the ARPANET completed its Host to Host protocol and
developed the Network Control Protocol (NCP) and then the network users
finally could begin to develop applications. (Kahn et al; 1978)
Since then, the potential of internet has reached to such extent that,
today it is probably one of the strongest media we ever had. The increase
in its utility has grown many folds giving rise to multiple environment
system on the internet. A wide variety of applications are available now.
Be it a simple e-mail, chat, or information gathering, it serves a several
18
millions of people everyday. One of its traits which are growing its
popularity very fast is shopping on the internet. We sometimes call it e-
Commerce. Although e-Commerce in itself has many sub environments
such as Shopping grocery, clothes or electronic goods or online bank
transactions. This research paper will deal with the question of change in
the psychology of Indian Subcontinent Students studying here and its
effects on their family in their countries about e-shopping only.
The history of e-Commerce started in 1968, when for the first time the E-
Commerce started with a basic EDI (Electronic Data Interchange) format
which enabled the business men to interchange data between one another
and perform a kind of B2B transaction. Although the format was too basic
as was the idea but still, it was only the beginning. Today’s world
experience a very new and efficient format but still, Kerry Stackpole (CEO,
Data Interchange Standard Association) considers EDI to be “a sort of
invisible technology and is really at the core of most productivity
improvements of the last half of the century”. (Wiseman J; 22nd August,
2000)
In 1984, ASC X 12 standards established itself as a reliable means of
transferring data with a larger potential. But unfortunately the over
utilisation of this standard increased the e-traffic which in turn increased
the popularity of e-commerce.
In 1994, the search for a more user friendly and point to click browser
interface ended with the evolvement of a Mosaic browser called Netscape.
This was more user friendly with options to download and point and click
devices. The downloadable features of this new browser made it
immensely popular among the audience because it was very simple and
they did not need any computer programmer to download software. This
revolution might be considered as a great point of achievement for the E-
commerce history as this technology burp gave the common people the
power to go online and experience different applications and spread their
wings by trying new things online. This was a great step towards the B2C
transactions.
19
It was in May 1998, when SBS Communications for the first time in
California extended their DSL cables to ADSL (Asymmetric Digital
Subscriber Line) and gave them the experience of trying a 50 times faster
bandwidth than what they were using (28.8 kbps). (Wiseman J; 22nd
August, 2000)
Another major step towards the popularity of E-commerce was the

evolution of Napster in 1999, which allowed the audience to download
music files for free. This led a greater audience towards E-Commerce
since this increased the curiosity and generosity to go online and
download their favourite things.
Another big leap towards the road to success was the Merger between
AOL (America Online) and Time Warner in 2000. The entertainment giant
merged with a new electronic media giant with a base of 24 million
customers at that time. This is a very good example of foresightedness
Time Warner had that time. They got the pulse of the future and recon
that it is E-age and the only way to grow is by adopting the technology to
improve quality and customer reach.
All these events were proving to be good for encouraging people to

transact online which was growing every day but, on 7th February 2000
the mass attack on the e-commerce giants such as Yahoo, e-Bay and
Amazon by the hackers set the common man into confusion whether it
was safe at all to transact online or not. This was a major setback to this
growing trade.
It was seen that the whole Industry is almost under Monopoly or at least
under huge Oligopolistic pressure. In a development report published in
2001 in the United Nations Conference on Trade and Development in
Geneva, it was revealed that “one single company sells 80% of the
routers and the other sells about 90% of the web browser”. In a study
published in June 2001 by Jupiter Media Metrix in US stated that the
number of companies controlling 60% of the total time US citizens pass
online has came down to 14 from 160. That was an incredible 87% fall.
20
The remarkable point to note was the AOL Time Warner Network
accounted for 32% of online time. The fact that can be inferred from here
is the decision taken by Time Warner right regarding the merger. This was
the pulse of the market. This fact can be proved by quoting another
example. The General Electrical was a huge company and was considered
as one of the giants in the electrical industry, but it opened its website
and started transacting online to improve customer service and coverage.
(United Nations Conference on Trade and Development, E-Commerce and
Development Report, 2001) [Online] Available from:
http://r0.unctad.org/ecommerce/docs/edr01_en/edr01pt0_en.pdf)
In a press release by United Nations Trade and Development, on 18th

November, 2002 claimed that the Asia and Pacific accounted for a 46% of
the total digital subscribers world wide.
(United Nations Conference on Trade and Development, 2002) [Online]
Available from:
http://r0.unctad.org/ecommerce/docs/edr02_en/ecdr02press1.htm)
The statistics mentioned later in this chapter suggests that the Indian
Subcontinent (India, Sri-Lanka and Pakistan) scenario is a bit different.
This might be due to many reasons but to count a few and the major ones;
it would be wise to look at the development and the statistics of internet
usage separately.
2.1 Development of e-Commerce in Indian Subcontinent:
2.1.1 Development of e-Commerce in India:
Country Profile:
21
India is a very big country having a large area of around 3,287,590 sq.
km. in Southern Asia bordering the Arabian Sea and the Bay of Bengal. It
is a very heavily populated country of about 1,129,866, 154 person. The
literacy rate is as high as 61%. (CIA Fact Book) [Online] Available from:
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html
The history of internet in India started with an initial approach from a

division of Department of Electronics and Department of Statistics called
as ERNet and NICNet. While ERNet (Education and Research Network) was
basically responsible for providing Internet services to the Education and
Research Institutes, NICNet was dealing with connecting Government
departments and agencies. In the year 1993, the director of ERNet Dr. S.
Ramakrishnan developed a command based user Interface which did not
used the TCP-IP network Protocols. This was called “SHELL”. It again
developed to “UUCP” (Unix to Unix Copy Programme) which was because
the connection reliability was still poor.
For the first time in 1996, the whole system was upgraded to a nationwide
“V-SAT” (Very Small Aperture Terminal) which was the first satellite based
digital communication system in INDIA. Although the speed was only
2400 BPS initially but within a year the speed was increased by 64 KBPS
V-SAT links.
The main focus of introducing internet in INDIA till 1997 was to

communicate between Government Agencies and Departments and for the
purpose of Education and Research. The main point to observe here is the
common people in the country was still not aware of all this techno-
revolution going on as they never felt its use to them. Since ERNet and
NICNet were under the Department of Telecommunications (DoT) which
was run by the Government of INDIA, they had to rely on the Government
policies. This could be considered as a mean of restriction in spite of being
the first ISP’s of INDIA. (Ghosh A; 1998)
The advent of VSNL (Videsh Sanchar Nigam Limited.) in the late 1995 as
an ISP was a huge hope, since it was providing internet services to STPI
22
(Software Technology Parks of INDIA) by launching the GATEWAY

INTERNET ACCESS SERVICE. But it was also acting under the DoT
(indirectly the Govt. of INDIA) which gave him the licence to go public
only in four Metro Cities. The charter with the DoT was only to provide
International Telecom Gateways but not the end-user services. That
means a common man still was starving for Internet.
In a press release in the year 2004 VSNL stated that it has extended its
reach of Dial-Up internet connection services to 100 cities in INDIA. The
starter packs costing between Rs.100 to Rs. 3,000 depending upon the
needs and internet hours. This may imply that the concept of high speed
broadband was still missing even at that point of time. Being the main ISP
of INDIA VSNL has a customer base of over 8,00,000 in 2004 alone. But
the main lookout is how many of them buy its internet services and up to
what extent. (VSNL; August 17, 2004, Press Release, VSNL Extends
Reach of Dial-Up Internet Service to Over 100 Cities,
http://www.vsnl.in/vsnlnews/PR_Dial-up_Internet_17-08-04.pdf)
In a summary report published in 2006 by IMRB International and IAMAI

it was revealed that the active users using internet was just over 21
million. The definition set by the board for Active User is “someone who
has used the internet at least once in the last one month”. A survey was
conducted including 16,500 households, 1000 business houses and 250
cyber café owners across 28 major metropolitan cities in INDIA. Being so
huge and broad in its nature it is being considered as one of its kind. They
revealed a data of people connecting internet and suggested that it looks
like a funnel to get the real users.
FIGURE-1 THE INTERNET USER’S FUNNEL
23
Urban Population - 243 million
Literate Population - 203 million
English Knowing - 77 million
PC Literate - 59 million
Ever User – 32 million
Acti ve User-
21 million
Internet in India-2006; Summary Report of I-Cube 2006, p.8
It was observed that only 55% of the PC literate people have experienced
the Internet. The development in internet users was shown in a graph in
the summit.
FIGURE-2 PERCENTAGE OF ACTIVE INTERNET USERS
24
An interesting fact was also this that the percentage of people owning PC’s
and have internet as well is increasing.
FIGURE-3 PERCENTAGE OF PC OWNERS HAVING INTERNET
Although the Cyber Café’s are still dominating as the access points for
Internet, Home usage is not far behind. The graph shown below clearly
demonstrates that the use of cyber cafes have decreased from 43% to
39% in just 6 years. Although looking at the number of years it might look
weak but, the home usage increased from 22% in 2000 to 31% in 2006.
25
FIGURE-4 GROWTH OF ACCESS POINTS OF INTERNET USAGE
Access Points for Internet
0%
5% 3% 2% 2% 2%
100% 4% 3% 5% 6%
90% 22% 23%
30% 27%
80% 31%
70%
20%
60% 30% 20%
19%
22%
50%
40%
30% 52%
43% 44% 46%
39%
20%
10%
0%
2000 2001 2003 2004 2006
Cyber Café Office Home School/College Others
Adopted from Internet in India-2006; Summary Report of I-Cube 2006
The committee recognised six main demographics that use the internet.
FIGURE-5 SIX DEMOGRAPHICS USING INTERNET IN INDIA
Internet Usage Demographically
Non-Working
Women
9% Young Men
Older Men 28%
17%
School Kids
College Students
14%
Working Women
23%
9%
Adopted from Internet in India-2006; Summary Report of I-Cube 2006
26
The age of each component of the Demography was also explained as:
Young Men – Less than 35 years

School Kids – 12-17 years
Working Women- 18-45 years
College Students- 18-23 years
Older Men – 35-58 years
Non-Working Women - More than 45 years.
The main inference that can be drawn here is the major contributor to the
internet usage is the Young Men and the College Students. Which can be
explained as the college students needs Internet for education, training
and communicate to their friend circles etc. The Young Men use Internet
mostly in the office for business purposes and for communicating each
other.
The 2.6 million Internet users in INDIA still rely on Dial-Up connection as
compared to Broadband connections. Only 23% of the 2.6 million internet
using population uses Broadband. Looking at the Development in India
alone in the last ten years in not very impressive, still the picture is
growing better. An argument can be drawn that the picture is looking
bright in future days to come, but still the main problem lies somewhere
else. At this age of technology favouring world, the neighbourhood is
becoming small. That is the world is getting smaller place to communicate.
The globalisation (both in terms of Business Resources and
Communication) is huge and getting bigger every day. So the main
problem becomes the growth rate. May it be e-Commerce or Economy,
Career or Architecture, the question lies in how quick it is going to grow
big as others. The data given by the Internet World Stats this year can
throw some light on the issue.
27
Table: 1 Internet Usage and Population Statistics, India
YEAR Users Population % Pen. Usage Source

1998 1,400,000 1,094,870,677 0.1 % ITU
1999 2,800,000 1,094,870,677 0.3 % ITU

2000 5,500,000 1,094,870,677 0.5 % ITU
2001 7,000,000 1,094,870,677 0.7 % ITU
2002 16,500,000 1,094,870,677 1.6 % ITU
2003 22,500,000 1,094,870,677 2.1 % ITU
2004 39,200,000 1,094,870,677 3.6 % C.I. Almanac
2005 50,600,000 1,112,225,812 4.5 % C.I. Almanac
2006 40,000,000 1,112,225,812 3.6 % IAMAI
2007 42,000,000 1,129,667,528 3.7 % IWS
Internet Usage Stats and Telecommunications Market Report. [Online

www.internetworldstats.com]
In a report published by IAMAI (Internet and Mobile Association of India)

in February, 2006 they mention the internet activities done by the Indians
as,
FIGURE-6 INTERNET ACTIVITIES BY INDIANS
Internet Activities by Indians
Job Search 22%
Banking 14%
Bill Payment 8%
e-Mail & IM 42% Stock Trading 7%

Matrimony Search
7%
Internet Usage Stats and Telecommunications Market Report. [Online

www.internetworldstats.com]
28
Now, it would be better to summarise the development of e-Commerce by

dividing it into 3 phases:
a) Introductory Phase- Early 90’s
b) Early Growth Phase- Mid 90’s
c) Growth Phase - Till Now
FIGURE-7 GROWTH OF INTERNET USAGE SNAPSHOT
Parameters Introduction Early Growth

Phase Growth Phase
Phase
Availability Limited Average Adequate
Affordability Low Average High
Target Segment Top 8 Metros Small Metros Smaller Towns
Access P oints Dial-Up s Cyber Café Branded Chains

Limited Home of Cafe
Access Home Acce ss
Applications E-mail, E-mail, Chatting, Information

u sed Notifications Information search, Gaming,
Search Chat and E-mail,
E-Commerce
Interface Engli sh Engli sh Multi-Lingual

Language
Author Generated
2.1.2 Development of e-Commerce in Pakistan:
Pakistan is a small country in the Southern Asia bordering the Arabian Sea.
It has a coastline of around thousand km along the Arabian Sea. As per
World-Gazetteer the population of this country in 2007 was 167,806,831.
GNI per capita was US$ 2,628 in 2006 as per World Bank. The literacy
rate is about 50% The inflation rate is one of the biggest threats to the
economy. The growth rate in the GDP was observed to be 6.6% as
compared to last year.(https://www.cia.gov/library/publications/the-
world-factbook/geos/pk.html)
29
A somewhat clear picture can be obtained by looking at the statistics

provide by internetworldstats.com about the population, internet users
and the percentage penetration.
TABLE-2 INTERNET USERS vs. POPULATION IN PAKISTAN
YEAR Users Population % Pen. GDP p.c.* Usage Source
2000 133,900 163,985,373 0.1 % N/A ITU

2006 12,000,000 167,806,831 7.2 % US$ 690 ITU
http://www.internetworldstats.com/asia/pk.htm
By looking at the above table it is evident that Pakistan being a smaller

country in the Indian Subcontinent the situation is even worse. The Govt.
started IT and Internet initiatives in early 2000 but still the main e-
infrastructure was to facilitate the Govt. agencies to communicate in an
easy way. The interfaces used by common man are to gather information
and not monitory transaction. One of the main monitory transactions that
happen till now is the foreign remittance to some banks. The e-merchant
accounts used by e-vendors were under State Bank of Pakistan till
2001.The poor usage of e-Commerce in Pakistan can be facilitated by the
poor IT and Communication Infrastructure. The Govt. decided to relocate
US $10 billion during the year 2005/2006. (The Economist Intelligence
Unit, 1st Nov 2006; Overview of e-commerce in Pakistan,
http://globaltechforum.eiu.com/index.asp?layout=rich_story&doc_id=961
6&title=Overview+of+e-
commerce+in+Pakistan&categoryid=30&channelid=4
As per the Govt. survey in 2005 there were about 2.1 million internet
subscribers and 10 million internet users by June 2005. In the beginning
of 1993 the main ISP was SNDP (Sustainable Development Networking
Programme). The Govt. first allowed the licence to private owners in 1996.
The largest ISP is PakNet.
In the same report a comparison of Pakistan vis-à-vis world relating the

internet usage and its capacity by means of ICT Infrastructure measure
and Human Capital measure was given.
30
FIGURE-8 INTERNET USAGE AND HUMAN DEVELOPMENT INDEX
(Khushnood B, 2002; Initiatives for eCommerce Capacity-Building of

SME’s, http://www.unescap.org/tid/publication/part_three2261_pak.pdf)
FIGURE-9 ICT INFRASTRUCTURE DEVELOPMENT
(Khushnood B, 2002; Initiatives for eCommerce Capacity-Building of

SME’s, http://www.unescap.org/tid/publication/part_three2261_pak.pdf)
31
Status of e-Commerce till 2001 in Pakistan a snapshot:
 Limited usage of Debit Cards and Plastic Money.

 Still facilitating e-Payments and utility bills.
 Limited online banking due to non-availability of digital signatures.
 None of the Connection Authority available.
 No B2B e-Commerce infrastructure available.
(Khushnood B, 2002); [Online] Available from:
http://www.unescap.org/tid/publication/part_three2261_pak.pdf)
The fixed line penetration is just about 4% which is about 6.4 million
telephone lines, less than what was targeted (10 million). Since the
telepenetration is still so low, broadband is also experiencing negligible
growth.
(2007 Telecom, Mobile and Broadband in Asia Report. Pakistan,
Bangladesh, Maldives, Afghanistan and Sri Lanka). [Online] Available from:
http://www.budde.com.au/publications/annual/asia/afghanistan-
bangladesh-maldives-pakistan-sri-lanka-summary.html)
2.1.3 Development of e-Commerce in Sri Lanka:
Sri Lanka is a very small country located at about 31 km. off the Southern
coast of India. Being a link between the West and South-East Asia the
place is renowned for its Buddhist and Hindu culture. The approximate
land area is about 65,610 sq. km. with a population of 19,796,874 in
2007 (World-Gazetteer). As per the data of World Bank the GNI per capita
in 2006 was US$ 1,310. The main language is Sinhalese and Tamil. Only
10% of the population speaks English. In the last 10 years the GDP
growth was just 4.5 %. There are about 2.087 million Telephone lines in
use accounting for 4,26,000 Internet Users. (CIA Fact Book) [Online]
Available from:
https://www.cia.gov/library/publications/the-world-factbook/geos/ce.html
32
In a report published by Sri Lanka Business Development centre reveals

that, about 80% of the SME’s use internet for business. As a matter of
fact, this rate has grown in the last three years since, 63% out of 67
companies are using it for the last three years. It was found out that 75%
of the employees use internet for less than an hour in a day even after
having facilities to be online. This shows the disbelief of Internet as a tool
for growing business. The light of hope is that, about 46% of the SME’s
communicate daily with their customers through e-mails. Most of the
connections being popular today are Dial-Up’s still. The survey showed
that ISDN lines are way far behind the competition.
FIGURE-10 PERCENTAGE OF DIAL UP’S vs. ISDN IN SRI-LANKA
Types of Connection
Cable
1%
Leased Line
24%
ISDN
9% Dial Up
66%
(SLBDC, June 2002; Survey on E-Commerce Implementation in the SME

Sector of Sri-Lanka,
http://www.asiafoundation.org/pdf/SMEsurvey_srilanka.pdf)
This data infers that the SME’s are not considering the Internet at least as
a tool to sell things, since it requires more bandwidth and dedicated
broadband lines to serve the internet traffic.
33
The most prominent hint to the e-commerce development there would be

the answer to the question that, why do the companies have their own
websites (only 51%)? The most popular answer (93%) was “to promote
their company to the potential customers”. None of the answers depicted
“Sell goods over the internet”.
With a total of 80 SME’s in the survey only 12.5% have ever sold their
goods on internet. The most popular method of transaction is Debit/Credit
Cards. And out of these SME’s only 30% sells 21-30% of their overall
sales volume through internet.
About 30% of the Internet availing community places order online. This is
in accordance with the previous data of the sales revenue.
TABLE-3 INTERNET USERS vs. POPULATION IN SRI-LANKA
Usage
YEAR Users Population % Pen. GDP p.c.*
Source
2000 121,500 19,630,230 0.5 % N/A ITU
2007 428,000 19,796,874 2.2 % US$ 1,310 ITU

After Looking at the E-Commerce development scenarios of each of

countries of the subcontinent it is evident that the pace required to keep
themselves updated to the recent world I clearly missing. It might be
because of the Psychology of the consumers. Hence, it would be a noble
try to find out “how the Psychology of the Indian Subcontinent Students
have changed and might affect the behaviour of their family members
towards e-Commerce”?
34
To study the Psychology of these subjects there would come many

theories but, to start with the basic one should be appropriate. That is the
Hofstede’s Theory of Cultural Dependency.
2.2 The Culture Dependency:
Apart from the different models suggested by different researchers to

relate Psychology and behaviour, there is still something left to be
understood. And that is culture. Although a part of it can be included in
the subjective norm and social experience but looking at it as an
independent factor can give the whole theory a new meaning. It is already
known that Human Behaviour is highly influenced by culture. Between
many theories Hofstede’s models (1997) is a popular one. He focused
basically upon patterns of thinking, feeling and acting of customers. As
per him Culture is always a collective phenomenon, because it is al least
partly shared with people who live within the same social environment.
Although the early sociologists like Bourdieu thinks culture as “the
collective programming of mind which distinguishes the members of one
group or category of people from another” (Bourdieu, 1980; pp. 88-89)
1. Power distance: is one of the dimensions of national cultures,

which reflects the range of answers found in the various
countries to the basic question of how to handle the fact that
the people are unequal. In other words it is the extent by which
the less powerful members of organizations or a family accept
that power is distributed unequally. Hofstede also calculated a
Power Distance Index for each country by his famous IBM
survey.
2. Individualism: is a quality present in every individual to a certain extent.

Many people live in societies and sometimes the interest of the
individual prevail over the interest of the group. That is why in some
societies the ties between people are loose eg; Nuclear Family. Most of
the people in UK don’t live with their parents after a certain age. There
the Individualism Index (II) of the Societies is considered to be low.
35
Countries like India where people still believes in Joint Family have a
high II score.
3) Masculinity: is the distribution of roles between a male and a female.

This is the gender index in the culture tree. As per their respective
natures the assertive and competitive poles are called as Masculine
and the modest poles are called as Feminine.
4) Uncertainty: is the environment’s tolerance level for any uncertainty. It

is the level to which a certain group of people belonging to any society
can bear to any unstructured ambiguity. The level of un-comfortibility
is a measure of this index.
5) Long Term and short Term Orientation: are the two virtues by which
one can get to know the values of a society. The value associated with
the Long-Term orientation was Thrift and Perseverance whereas for
Short Term it was respect for Tradition and Fulfilling social obligations.
This theory by Hofstede was a very important reference to understand the

relationship between culture and its dependency. Although there are other
factors as well which affect the behaviour of a person.
2.3 Theory of Reasoned Action:

There were many theories which tried to find out the real psychology of a
customer to transact. Theories such as Theory of Reasoned Action, Theory
of Planned Behaviour, Technology Acceptance Model and United Theory of
Acceptance and Use of Technology have tried independent approaches to
justify the reason of the behaviours done by the customers. The early
stones were laid by Ajzen and Fishbein (1967) by introducing the Theory
of Reasoned Action.
This theory states that a person’s behaviour is determined by their

attitude toward the outcome of that behaviour and by the opinions of the
person’s social environment. They suggested that behaviour is driven by
behavioural intentions where behavioural intentions were a function of an
36
individual’s approach/attitude towards the behaviour and subjective

norms surrounding the performance of behaviour.
Now while going into the theories of human psychology of buying or even
behaving some terms must be understood well. Terms such as Subjective
Norms, Attitude etc. should be understood well in order to get the real
meaning of these theories.
Attitude has been defined by many researchers in different lights. But in

a more generalised way it can be defined as the feelings of an individual
(be it positive or negative) associated with the performance of the
behaviour. It is believed that there are certain beliefs responsible for the
attitude and the results of the attitude being evaluated from the sum of
the individual consequence x desirability assessments for all expected
consequences of the behaviour.
Subjective Norm was first introduced by Ajzen and Fishbein (1967) in

their first model the TRA. This was basically an individual's perception of
whether people important to the individual think the behaviour should be
performed. Hence, overall subjective norm can be expressed as the sum
of the individual perception x motivation assessments for all relevant
referents.
Algebraically TRA can be described as
B ≈ I = (Aact) w1 + (SN) w2
Where,
B = Behaviour,
I = Intention,
Aact = Attitude towards the behaviour,
SN = Influence of the person’s Subjective Norms
Diagrammatically, this can be represented as
37
FIGURE-11 TRA
Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behaviour:
An introduction to theory and research. Reading, Mass.; Don Mills, Ontario:
Addison-Wesley Pub. Co.
In this theory the intention plays a key role in predicting someone’s

behaviour. Although the factors that determine the Behavioural Intentions
are Subjective Norms and Attitude towards the Behaviour. The main
limitation of this theory was no observation was used from a different
perspective but only self reported is counted as a factor for deciding the
results. It might be possible in some cases that the answers might be
framed or distorted by some compulsions. Also, the behaviour done un-
consciously is not taken into account.
2.4 Introduction of TPB:
Understanding this problem Ajzen and Fishbein (1988) further extended

their research and landed up with the Theory of Planned Behaviour in
1988. This time the model was almost the same but with the inclusion of
the sub-factors affecting the factors towards the intention to behave and a
new factor called Perceived Behavioural Control. Ajzen’s intention was to
capture motivational factors that influence the behaviour. (Ajzen 1991, pp.
181)
38
FIGURE-12 THEORY OF PLANNED BEHAVIOUR
Adopted from http://www.people.umass.edu/aizen/tpb.diag.html
The changes in TPB from TRA are shown by the shaded area in the figure.
The sub-factors influencing the factors were clearly identified in this model.
Hence, this model was more prepared to deal with the current world
scenarios and more importantly a clear guideline was given to implement
the model to decide the reason of doing a particular behaviour.
As per the Theory of Planned Behaviour, human action is controlled by

three types of considerations which are categorised as:
a) Behavioural beliefs (beliefs about likely consequences of the

behaviour).
b) Normative beliefs (beliefs about normative expectations of others).
c) Control beliefs (beliefs regarding presence of factors which
facilitates or impede behavioural performance).
39
Behavioural Beliefs are the beliefs about the probable consequences of

the most likely behaviour. It might be considered as the probable result of
the final behaviour and influences the Attitude towards Behaviour.
Attitude Towards a Behaviour is basically the degree to which the

performance of the behaviour is valued as a Positive or Negative
behaviour. This is directly proportional to the strength of the belief and
evaluation of the outcome of the behaviour.
A ∞ Σbjej
Where,
A= Attitude.
b=Strength of each belief.
e= Evaluation of the outcome of the behaviour.
Normative Beliefs are the beliefs which refer to the perceived behavioural
expectations of such important referent individuals/groups such as Friends,
Relatives etc. In this paper the normative belief could be the belief of the
subjects (Indian Subcontinent Students in U.K) that since they have found
the advantages of e-Commerce, their family and friends back in their country
could also become interested towards it.
Subjective Norm is the apparent communal obligation to decide engage

or not to engage in the behaviour. In this case it is the opportunity and
adventurous experience (for those who have not done this in their country)
to indulge in purchasing online. Lack of time here can also be considered
as a Subjective Norm in this case. This can be calculated as,
SN ∞ Σnjmj
Where,
SN= Subjective Norm.
n = Normative Belief.
m= Motivation to Comply.
40
Control Beliefs are the perceived beliefs whose presence may assist or
impede performance of behaviour.
Perceived Behavioural Control is the perception of an individual about

his ability to perform a given set of behaviour. It is of two types the first is
about self-efficacy and the second is the conditions that provide the
resources to engage in a behaviour. (Triandis, 1979) This can be
calculated as,
PBC ∞ Σcjpj
Where,
PBC = Perceived Behavioural Control.
c = Control Belief.
p = perceived Power.
Intention is the readiness of an individual to perform a given behaviour

and is considered to be an immediate antecedent of behaviour.
Behaviour is the manifest, observable response in a given situation with

respect to a given target.
Although researchers such as Bagozzi and Burnkrant (1979); Di Tecco and

Schlegel (1982); believed that behavioural intensions were independent of
the effect of attitudes. It would also be a lookout that the belief
structures are too complex to be captured in numbers or in writing. It
would be hard to refer someone’s belief strengths in numbers.
2.5 Introducing TAM:
In the year 1989 Fred Davis came up with the idea of how the ease of
using a technology influences the intention and attitude to do behaviour.
All the previous models were trying to measure the behavioural intentions
to use internet based shopping experience. The main idea of
41
implementing this model was to understand the relationship between the

main idea of internet shopping behaviour and the external factors other
than the human psychology. Before Davis (1989), Ajzen and Fishbein
(1967) dealt with the psychological part of the consumer behaviour and
attitude towards e-shopping. Fred Davis for the first time included the
technological aspect of the behaviour and constructed a bridge between
technology and psychology. The main intention was to include the
technological constraints, time constraints and the ease of use constraints
into the earlier model (Bagozzi et al; 1992). As Warshaw and David said
“Because new technologies such as personal computers are complex and
an element of uncertainty exists in the minds of decision makers with
respect to the successful adoption of them, people form attitudes and
intentions toward trying to learn to use the new technology prior to
initiating efforts directed at using. Attitudes towards usage and intentions
to use may be ill-formed or lacking in conviction or else may occur only
after preliminary strivings to learn to use the technology evolve. Thus,
actual usage may not be a direct or immediate consequence of such
attitudes and intentions.” (Bagozzi et al; 1992).
FIGURE-13 TECHNOLOGY ACCEPTANCE MODEL
42
Dillon and Morris IEEE Software, 14(4), 61

http://www.ischool.utexas.edu/~adillon/Journals/IEEE%20papers_files/Us
er%20Preceptions.htm
Across many theories and tests the term Perceived Usefulness introduced
in TAM has increased its popularity towards analysing exact factors as well.
Although Hastie and Park believe that the information strategies used by
different consumers can be of two types. Either a Stimulus based or a
memory based processing (Hastie and Park, 1986). In a Stimulus based
processing all the information are observable and the customer can
compare all relevant alternatives across all Attributes (Mantel and Kardes,
1999).
A paper published in the Journal of Electronic Commerce Research in

November 2002 by Pavlou and Chai argues that the adoption of E-
Commerce primarily depends upon the consumer behavioural intentions to
engage in product purchase. The perceived Behavioural control and Trust
as proposed in TPB have a very critical role to play in this case. (Pavlou;
2002/03). The extra factors added in TPB from TRA gives a better picture
since the issues include more external factors than before. (Madden et al.,
1992)
2.6 Unified Theory of Acceptance and Use of Technology:
This theory stands on mainly four functions which are considered as direct
determinants for the usage of behaviour viz.
e) performance expectancy
f) effort expectancy
g) social influence
h) Facilitating conditions.
The following points are these which mediate the impact of these four key
which construct on differentiation and behaviour such as follows:
Gender, age, usage ,voluntaries of usage.
43
This theory was developed very smartly. It contained a thorough review

and consolidation of the works done earlier by the Researchers. There
were about eight models available related to this field (Linking
Information Systems and the Behaviour). The eight main theories
proposed earlier are Theory of Reasoned Action, Theory of Planned
Behaviour, Technology Acceptance Model, and Motivational model, A
Combined Theory of Planned Behaviour/Technology Acceptance Model,
Model of PC Utilization, Innovation Diffusion Theory, and Social Cognitive
Theory. Subsequent validation of UTAUT in a longitudinal study found it to
account for 70% of the variance in usage intention (Venkatesh et. al.,
2003).
FIGURE-14 UNIFIED THEORY OF ACCEPTANCE AND USE OF TECHNOLOGY
Eija K, 2005; User Acceptance of Mobile Services- Value, Ease of Use,

Trust and Ease of Adoption, Tampere University of Technology pp. 67.
http://www.vtt.fi/inf/pdf/publications/2005/P566.pdf
2.7 The Conceptual Model:
The theory of planned behaviour (TPB) asserted that there are some
specific beliefs which influence behavioural perceptions and subsequent
actual behaviour (Ajzen, 1985, 1988, 1991). The three basic beliefs that
affect three perceptual constructs are
44
1. Behavioural Beliefs that affect Attitudes.

2. Normative Beliefs that affect Subjective Norm.
3. Control Beliefs that affect Perceived behavioural control.
And, these three constructs determine behavioural intentions and actual

behaviour. In this research we will first carefully understand the
perceptual approaches and terms to get a platform to decide upon the
methodology.
As per Pavlou and Chai attitude towards a behaviour can be defined as the
overall evaluation of the desirability of the potential transaction with a
specific web retailer. In 1995 Taylor and Todd (1995) describe the
construct as the generalized attitudinal belief that behaviour will lead to a
particular outcome.
This is basically the intention of a consumer to engage him in an

electronic transaction with an e-vendor/retailer (Zwass, 1998). Electronic
transaction here means sharing business information, maintaining
business relations or conducting business transactions and hence online
transaction can be viewed as interactive marketing communications
(Pavlou and Stewart, 2000).
An accepted theory is, consumers do not widely accepted e-commerce,

primarily because of the trust related issues. It was confirmed by different
studies conducted at Hoffman et al (1999); Palmer, Baley and Faraj
(2000); Pavlou, (2000, 2003). Since trust is fundamental in predicting e-
commerce adoption (Gefen D, 2000) developing consumer rust is critical
for the continued growth of e-commerce (Palmer et al (2000); Stewart,
Pavlou and Ward (2002). It is not only the trust but also, the concerns
about privacy and security underscores the importance of trust (Chellapa
and Pavlou, (2002). Even in Asia it is arguable that the “importance of
trust has become elevated in e-commerce given the high degree of
uncertainty present in most online transactions” (Fung and Lee, 1999; Lee,
1998). Trust in a Web Vendor/Retailer may be defined as a subjective
45
probability by which consumers expects that a web retailer will perform a

given transaction in accordance with their confident expectations (Ba and
Pavlou, 2002). So, trust as a factor can be controlled by the e-retailers by
their trustworthiness.
Hofstede’s (1980) cultural dimensions serve as the most influential culture

theory among social science research (Nokata and Sivakumar, 2001) The
study conducted by Hofstede has got a greater relevance and the
framework was generated among most extensive study ever undertaken
with about 116,000 respondents across 40 countries. And the results were
similar to 38 other studies (Nokata and Sivakumar, 2001).
FIGURE-15 THE CONCEPTUAL MODEL OF PAVLOU AND CHAI
ATTITUDE
SOCIAL NOR M
TRANSACTION
TRUST INTENTIONS
SOCIAL
INFLUENCE
Subjective Norm
Perceived
Behavioral
Control
Long Vs. Short term High Vs. Low Power Collectivism

Vs.
Orientation Distance Individualism
Cultural Effects
Adopted from Pavlou & Chai; 2002; What drives e-commerce across cultures
page 243, Journal of Electronic Commerce Research, Vol.3, No.4
This is the model suggested by Pavlou and Chai to understand the factors
affecting Transaction Intensions of a consumer. This model is
implemented in this research as well. The reason behind implementing
46
this specific model is due to its inclusion of the cultural dependency as a

factor to decide upon the actual behaviour.
2.8 The Culture Code:

Another very interesting study was done by the renowned Cultural
Anthropologist and marketing expert Dr. Clotaire Rapaille. As he says in
his book “the Culture Code is the unconscious meaning we apply to any
given thing. The American experience with Jeeps is very different from the
French and German experience because our cultures evolved differently
(we have strong cultural memories of the open frontier; the French and
Germans have strong cultural memories of occupation and war).
Therefore, the Codes — the meanings we give to the Jeep at an
unconscious level — are different as well”. (Rapaille C, 2006; pp.5)
Look at the Jews after the Diaspora; the Chinese, Indians and Brits. Their
success is based on some basic code elements that they share: tight
family structures, a belief in education, and a flexible but powerful
network. (Pesala S, 1st February, 2007; The Man Behind The Culture Code;
http://solomonp.blogspot.com/2007/02/man-behind-culture-code.html )
He claims that the culture code for Americans for shopping is

“Reconnecting with Life”. He also claims that shopping means more than
just buying things that are needed. It also means the Social Experience.
It’s a way to go out and experience new things such as new fashion,
trends and products see them and feel them not relying just on television
promos. As per Rapaille this culture code is tapped into the adolescent
component of everyone’s life. An interesting aspect to look upon the
research problem would be to consider this factor as well. As the
implementation of the Conceptual Model adopted from Pavlou and Chai
also includes the Cultural effects on buying behaviour, cross checking the
results of the cultural affects by this method would make the results more
justified. Although Rapaille did found out the codes for shopping related to
Americans, still no such work has been done with Indian Subcontinent
47
Peoples. An interview was conducted with few subjects of this type which
had thrown some light on this context.
The justification behind implementing this approach is because; the

intention of buying online may be affected by culture. The Conceptual
Model gives a very rough idea on this matter since, the questions in the
questionnaire answering this are well thought and as Rapaille said in his
book “The Culture Code” that questionnaire surveys are of very less
relevance when the real answers are expected. As the subject answers
mostly, what the interviewee wants to hear. The answers which are
prompt are believed to be delivered from the unconscious mind which
might be considered as of greater relevance. He further gives some
scientific explanation for this. He says, “When asked direct questions
about their interests and preferences, people tend to give answers they
believe the questionnaire wants to hear. It is because people respond to
these questions with their Cortexes, the part of brain that controls
intelligence rather than emotion or instinct” (Rapaille C, 2006; pp. 14)
48
Chapter-3 Research Methodology
3. Research Methodology:
This part of the research is divided into four parts.
3.1 Justification of the Proposed Model Adopted (each of it’s

factors)
3.2 Justification of the second Model Adopted (need of cross-
checking)
3.3 How the adopted models will answer the research question
(Analysing the questions in the Questionnaire and Interview)
3.4 Establishing the relation between the Research Aims and
Objectives and the Research Method Adopted.
The first section (3.1) will deal with the question “why it was necessary to
include this attribute in this model used in this research?” The second
section (3.2) will deal with the question “why is it necessary to cross-
check and what benefit would the second model bring to this research?”
The third section (3.3) will deal with the question “what importance does
this question hold in the Questionnaire or in the Interview?” The fourth
section (3.4) will establish a relationship between the Research Aims and
Methodology Adopted.
3.1 Justification of the Proposed Model Adopted
The research methodology used in this paper is based on the Conceptual

Model proposed by Pavlou and Chai. It explains the interrelationship
between the factors affecting the Transaction Intensions of the Indian
Subcontinent Students about Online Shopping. An approach towards
knowing how the changed psychology (if at all), of the subjects will affect
their family when they will go back to their countries is also a question
that is to be answered by implementing this model. The Model as
discussed earlier has the inclusion of the culture theory (Known as
Hofstede’s Theory). Out of the five paradigms explained by Hofstede, only
three were included by Pavlou and Chai. The Long Term vs. Short Term
Orientation, Power Distance and Collectivism vs. Individualism were
49
included. The Dependent Variable is the Transaction Intentions is

representing the Consumer’s e-Commerce Adoption Intentions. The
Attitude towards Transaction, Subjective Norm and the Perceived
Behavioural Control directly influence intentions of a customer to shop
online. (Pavlou; 2002).
The Model adopted from Pavlou is shown in the figure below,

Figure-16 The Adopted Model
Attitude
H6
HI
Social
Influence
Transaction
TRUST Societal Norm
Intentions
Subjective Norm s
H4 H3
H2
Perceived Perceived
Behavioural Control
Control Perceived
H5 Difficulty
Influence on
Collectivist vs.
Family
Members Individualist
Author Generated
3.1.1 Attitude
The acceptance of Attitude, influencing Behavioural Intentions has been

very popular and supported by many theories such as Theory of Reasoned
Action (Ajzen and Fishbein, 1975) and Theory of Planned Behaviour (Ajzen
1991). In this case of research Attitude covers the evaluation of the whole
Transaction Attributes with a Web Vendor/Retailer. So it would be quite
simple to understand that a Positive Attitude towards this whole thing will
facilitate Online Transaction whereas the Negative Attitude will create a
barrier towards it. (Tractinsky and Jarvenpaa 1999)
50
In the suggested model it is shown that Attitude is affected by Trust and

Collectivism vs. Individualism as one of the traits of Hofstede’s Culture
Theory.
FIGURE-17 FACTORS AFFECTING ATTITUDE
ATTITUDE
TRANSACTION
INTENTIONS
TRUST
COLLECTIVISM vs.
INDIVIDUALISM
AUTHOR GENERATED
3.1.1.1 Trust Attitude
David Gefen in his research paper has considered Trust as a leading and
potential factor towards the acceptance of new IT procedures. It has
grown a challenge to the online retailers to make their customer
trustworthy in order to retain them. Many researches have considered it
as a single dimensional constructs. But in his paper Geffen has rather
viewed it as a multidimensional construct. He has included some specific
beliefs that directly or indirectly (by the overall assessment of trust)
influences Behavioural Intentions. (Geffen D, August 2002. pp. 38-53).
In this paper the Behavioural Intentions lies pretty close to the
Transaction Intentions. Because the ultimate behavioural outcome
expected here is transaction.
Other than Gefen, Chellapa and Pavlou in 2002 stated that the question of
trustworthiness overweighs the question of security. In their paper they
quoted Fung and Lee as trust has always been of high importance in
51
influencing the attitude towards the consumer behaviour and holds high
relevance in Internet based e-Commerce environments. (Fung and Lee,
1999) In their paper, after studying 179 consumers they suggested a
strong relationship between consumer’s Perceived Information Security
and Trust in e-Commerce transactions. (Chellappa and Pavlou, 2002; pp.
358-368)
Also, Hoffman stated that the perceived ability to control their personal
information on the web is lacking in the consumers in most of the times.
And this lack of trust on their web retailers is one of the strongest barriers
to transact online.
H1: Higher the trust, more positive would be the attitude towards
online transactions.
Since this barrier is affecting the attitude of the consumer towards

transacting online. (Hoffman et al; April, 1999, pp. 80-85)
So, the inclusion of trust in the Conceptual Model was very important. In
the questionnaire there were two questions answering the real trust based
scenario in this case.
3.1.1.2 Collectivism vs. Individualism Attitude
As per the theory presented by Hofstede Collectivism and Individualism

are the traits of the society. Some Societies tend to stick together for
example, a Joint Family. Whereas some Societies tend to live
independently e.g. Nuclear Family. These qualities have a very strong
effect on Attitude. Pavlou and Chai stated “A cultural dimension is relevant
to attitude toward transactions with Web retailers” (Pavlou and Chai, pp.
243)
In a paper submitted by Bond and Smith analysing Cross-Cultural

Psychology infers that in a highly collective society a trait picked up by
someone would be followed by the others in the society. Whereas, in an
52
Individualistic Society the opinions differ to every individual. In a

Collective Society everyone is closely bonded to each other. Hence, it can
be well predicted that the people like to do everything in their respective
groups in this society. In this paper the question of Shopping Online is
being masked by this reason also (one of the reasons). People in Indian
Subcontinent are highly collectivist (IDV Score of 48 as per Hofstede),
(Hofstede, 1994 pp. 53) and hence like to do shopping with friends and
family than doing it online (as the results suggests from the
questionnaire).
So, a Hypothesis can be drawn that,
H2: The more the people are collectivist, more they will have a
positive attitude towards following others in the group and
indulge themselves in the same activity.
Shopping is also an activity and hence they will try more to do it in groups
rather than doing it online. In this way the Collectivism affects the attitude
which in turn affects the Transaction intentions.
3.1.2 Societal Norm and Social Influence
The Subjective Norm used in the Theory of Panned Behaviour has been
divided into two categories. One is Social Norm and the other is Social
Influence. A very interesting approach towards looking at Social Norm
would be by further dividing it into Injunctive Norm and Descriptive Norm.
This new definition published in The Higher Education Center for Alcohol
and Drug Prevention, U.S Department of Education has added a new way
to look at it. The Injunctive Norm refers to the attitude is based on Morals
or Belief. Descriptive Norm refers to the behaviour. That is, what people
actually do? (Berkowitz D A, 12th August, 2004; The Social Norms
Approach: Theory, Research and Annotated Bibliography,
http://www.higheredcenter.org/socialnorms/theory/types.html)
53
FIGURE-18 FACTORS AFFECTING SUBJECTIVE NORM
SOCIAL
INFLUENCE TRANSACTION
INTENTIONS
SOCIETAL
NORM
SUBJECTIVE
NORM
COLLECTIVISM vs.
INDIVIDUALISM
Author Generated
3.1.2.1 Collectivism Subjective Norm
As defined earlier, collectivism is the kind of society that tends to stick

together with strong beliefs. According to Hoffman et al, 2005 the
collectivist countries were more acceptant towards socially reticent and
withdrawn behaviours than was the case in individualistic countries.
(Hoffman et al; 2005) So, in other words being a collectivist society
Students from Indian Subcontinent have definitely been affected by not
joining the flow of revolutionary e-commerce which in turn has affected
their Transaction Intentions Online. It also says that, “Social anxiety may
be higher in countries where the social norms are clear and extensive,
than in the countries where the social norms are a bit relaxed” (Hoffman
et al; 2005). It can be contingent here that a adopting a new system
always increase Social Anxiety which is basically due to the
interdependence of Subjective Norms and Transaction Intentions.
Pavlou and Chai have differentiated the Subjective Norm as Societal Norm
and Social Influence. Societal Norm here in this case means the outlook of
the larger circle. That is, the whole community, for example, Middle class
people in the subcontinent. The Social Influence is the influence of the
54
opinion of the closed ones for example, Family and Friends. Moreover, in a
collectivist society, keeping harmony within the group is the highest
priority and hence, social norms have a serious impact on behaviour. It is
generally observed that in a collectivist society the rules are very strict in
order to maintain guidelines to avoid social-slips. As a result trying new
things is very rare. (Hein Richs et al; 2006)
The inclusion of this factor in the conceptual model used in this paper is
influenced by the high interdependence of Subjective Norm, Collectivist
Culture and Transaction Intentions.
Hence, it can be said that,
H3: Collectivism is correlated to the Societal Norm and seems to

share a directly proportional interrelation.
3.1.3 Perceived Behavioural Control
Perceived Behavioural Control (PBC) may be defined as one’s ability to

perform a given task. The concept of including PBC in the TPB (Theory of
Planned Behaviour) was to amalgamate the Perceived Difficulty and
Perceived Control in order to understand the affects of PBC on Transaction
Intentions. However, there is enough proof of PBC influencing the
Intentions. (Mathieson K, September 1991; pp.178 and Ajzen 1994)
3.1.3.2 Trust PBC
Pavlou argued that “Trust” is probably one of the most vital issues when it
comes to online transaction in B2C commerce. Trust provides the
consumer with the Perceived Behavioural Belief (Control) to incorporate
the total perceived control over their web retailer/vendor. Trust can never
affect Transaction intentions directly. Because it will either affect the
attitude of the customer in a positive/negative way or can affect the PBC.
55
FIGURE- 19 FACTORS AFFETING PBC
TRUST
Transaction
Intention
Perceived
Control
Perceived
Difficulty
Author Generated
In the first case the customer not having Trust on his web vendor will
change his attitude towards e-shopping. Whereas, in the second case if a
customer have a minimal level of Trust on his web vendor will generate a
minimal level of Perceived Control over the whole process. He will
perceive that he knows his web vendor well (have seen people buying and
getting satisfied) and will have a control over the whole process, which is
generated by his PBC (because of being effected by Trust). (Proctor W R,
Phuong K and Vu L, 2005; Handbook of Human Factors in Web Design, pp.
582)
So, it can be said that,
H4: More the Trust, More positive would be the Perceived Control.
3.1.4 Influence on Family Members:
One of the questions I the questionnaire was dealing with one of the
research objective to know the Influence on Family Members by the
Subjects. In some communities or societies people accepts or inherits
Trust from word of mouth communications as well. The inheritance of
Trust from word of mouth is not new and has been accepted by many
researchers. And some strong determinants of Trust were identified by
word of mouth related to exchange of information obtained from family
56
and friends are very high. (Kautonen and Welter; 2005, The Conceptual
Model of Trust In the Online Environment (2005), “Trust, social networks
and enterprise development: exploring evidence from East and West
Germany”, International Entrepreneurship & Management Journal, Vol. 1
No. 3, pp. 367-79.OIR31,5620 )
It might be said that Trust can generate some positive effects on the
subjects which in turn can influence their family members about online
transaction intentions and hence it can be said that,
H5: More the Trust, More would be the initiative to Influence

Family members.
Table-20 Trust and Influence on family members
TRUST
Transaction
Intention
Influence on
Family
Members
Author Generated
3.1.5 Social Influence and Attitude:
As a matter of fact the research using these two variables is not new.
Lucas (1978); suggested the support of managers have a social-critical
influence on worker’s attitude. Klobas’s PBiC model suggested the
extensional use of the Network Information as mathematical functions of
intentions (Klobas 1997). And then comes Ajzen (1985) who proposed the
linkage between Attitude and Social Norm by saying Intentions are formed
from Attitudes to outcomes of use. The most important part that the
57
Social Influence plays is accessing affects of it towards the different

Attitudes of the First Time Users and Late Adopters. Klobas studied the
nature of few people and concluded “Social Influences were frequently
combined with Positive Attitudes”. They also observed that “Social
Influence affects the Intended Use (Transaction Intentions here) by
influencing user’s perceptions of the Internet and Attitudes to the
outcomes of use”. (Klobas J and Clyde L, November 2001; Social
Influence and Internet use, Library Management, 22(1/2), pp. 66)
Figure-21 Attitude and Social Influence
Attitude
Social Inf luence Transaction

Intentions
Societal Norm
Author Generated
Hence it can be said that,
H6: Higher the Social Influence, stronger would be the Attitude to

Transact Online.
3.2 Justification of the second Model Adopted
In the above section, the justification for adopting the Conceptual Model
adopted has been discussed in length. In simple words, the above model
will form the platform for judging the interrelationship between the factors
affecting the Transaction Intention of a consumer for buying online. The
Indian Subcontinent Scenario is such that most of the students coming to
UK have started realising the importance of e-shopping. The affect of a
strong cultural factors were being combined with the psychological factors
revealing the truth behind the slow progression of e-commerce could be
58
answered with such a tool. Moreover the second research question of

what would happen when they will go back to their country could also be
addressed to some extent with the help of the model. But, an interesting
idea could be to cross check the results obtained from the above model.
The primary research of data gathering was done by circulating
questionnaires both manually and online. Still one question would remain
unaddressed “if the culture is also responsible for this even to a little
extent then, why?”
Here comes the role of understanding the culture code. A Culture Code as
described by Rapaille is the unconscious meaning anyone applies to
anything. Understanding the Consumer Behaviour with the help of
Cognitive Theories of Psychology were the early steps for marketing.
There are many proofs of Psychologists conducting sessions with focus
groups and doing surveys. As Bagozzi says, “…. are on the side of
inclusion by introducing research from cognitive psychology and emotional
psychology as they inform or directly interface with contemporary social
psychology in consumer behaviour” (Bagozzi P R, 2000; pp. 2) Previous
related works done by Artino Jr. A and Stephens M J, 2002, for predicting
Attitude towards Online Learning gives a great deal of insight on this
subject.
The interview format adopted in this research was divided into two groups.
This can also be termed as Attitude Survey. Although, while following the
Pavlou and Chai’s Model, questionnaire were based on closed ended
questions. Since, the results of social surveys today are mainly based on
closed ended questions it has become convenient to analyse the final
results in tabular or graphical form. (Schuman H and Presser S; 1996)
This part of the research is a combination of both open and closed ended
questions. The Fist section started with open ended questions to set a
mental frame for the subjects about online shopping. Questions such as
“How do you like to shop?” or “How do you feel shopping online?” will help
the subjects to set a mental frame about online shopping. The answers
they were giving in this section were completely coming from their
intelligence. That is, the “Cortex”. Now comes the second part. After the
59
mental frame being set, in the second section they were asked to say two
words against one word said. But, the trick was they had to say the two
words as soon as the first word was said. For example, if the word was
“wallet” the answers were “Money and Rupees” in most of the cases. Very
less people said “Debit Cards”. This shows the imprint of objects they
associate with “Wallet”. The argument is if someone says “Money and
Rupees” and not “Electronic Cards” this shows the attitude of buying
things with CASH only. Even if he has cards he prefers to use cash and
which is very rare in online transactions.
3.3 Analysing the questions in the Questionnaire and Interview
The whole research is divided into two very important parts. Looking at
the overview, the two parts are called as
3.3.1 The Primary Research

3.3.2 The Secondary Research
3.3.1 Primary Research
It is the manual research done to answer the research questions. This

includes Designing the Questionnaire, Distributing it (to Target Surveyors)
and finally gathering al together to form a meaningful picture in order to
answer the research Aims and Objectives. This part of the research will
discuss the types of question that has been asked in the questionnaire
and the behavioural attributes associated to it.
3.3.1.1 The Questionnaire
Q1. Do you use Internet very often?

Behavioural Attribute: Exposure towards Internet
a) Yes ------------------------------ Positive Exposure.
b) No ------------------------------- Negative Exposure.
c) Sometimes ---------------------- Neutral Exposure.
d) Every time ---------------------- Strong Positive Exposure.
60
e) Others --------------------------- Case Sensitive.
Q2. How long you have been using Internet?

Behavioural Attribute: Experience of using Internet
a) 1-2 years --------------------------- Nominal Experience.
b) 2-3 years --------------------------- Some Experience.
c) More than 5 years ------------------ Good Experience.
d) More than 10 years ---------------- Very Good Experience.
Q3. Where do you access Internet from?

Behavioural Attribute: Access Type
a) Cyber Café --------------------------- Highly Paid Access.
b) Institution ---------------------------- Very Easy Access.
c) Office --------------------------------- Easy Access.
d) Home --------------------------------- Paid Access.
Q4. What are the activities you use Internet for?

Behavioural Attribute: Perceived Usefulness
a) Communication (e-mail, IM, Chat) ------------------ PU is lowest.
b) Information Gathering (Research, Job Search) ----- PU is low.
c) Entertainment (Games, Adult Entertainment) ------- PU is low.
d) Finance (Investments, Online Banking) -------------- PU is high.
e) Shopping (Auctions, Grocery, Electronic goods) ----- PU is high.
Any two PU is Very High, Any three PU is Highest.
Q5. Have you purchased anything online ever?

Behavioural Attribute: Buying Experience
a) Yes ------------------------------------------- Have the experience.
b) No -------------------------------------------- Don’t have experience.
c) Thought of but, didn’t ----------------------- Wants to have experience.
Q6. If Yes, then how many times?

Behavioural Attribute: Trust.
a) Once --------------------------------------- Have some Trust.
b) More than once --------------------------- Have strong Trust.
61
c) Couple of Times --------------------------- Have strongest Trust.
Q7. What, according to you are most important barriers to purchase

online?
Behavioural Attribute: Perceived Difficulty
a) Worried about credit card number ---------- Have strongest PD.
b) I enjoy going out to do my shopping ------- Have more PD.
c) I like to feel, see, touch the product -------- Have very high PD.
d) Don’t like giving personal information ------ Have very high PD.
e) Don’t have a credit card --------------------- Have strong PD.
f) Internet is too slow --------------------------- Have some PD.
g) Cost of after sales service -------------------- Have high PD.
h) Delivery Costs are too high ------------------- Have highest PD.
i) Technical foul-up’s ----------------------------- Have low PD.
j) I am uncomfortable ---------------------------- Have some PD.
k) Other ------------------------------------------- Case Sensitive.
Q8. Would you like to consider buying online provided you get a help with?
Behavioural Attribute: Perceived Control
a) Transaction guarantee by reliable source ---- Have weak PC.
b) Explained the advantages of online buying –- Have high PC.
c) Pay when you get the delivery ---------------- Have no PC.
d) Good after sales service -------------------- Have some PC.
e) Get value added services ------------------- Have good PC.
Q9. If you know someone who bought something online, how do you feel?
Behavioural Attribute: Social Influence
a) Quite Normal ---------------------------------- Some SI.
b) WOW!!!!! -------------------------------------- High SI.
c) Doesn’t Matter --------------------------------- Least SI.
d) Let’s give it a try ------------------------------- Highest SI.
Q10. How do you feel talking to someone about buying things online?
Behavioural Attribute: Attitude
a) Comfortable -------------------------------------- Positive Attitude.
62
b) Uncomfortable ------------------------------------ Negative Attitude.

c) Should share the benefits with others -----------Strong Positive Attitude.
Q11. Did the behaviour about buying online changed as I moved to UK

from my country?
Behavioural Attribute: Societal Norm
a) I never did e-shopping but now I do ------------ Highest SN.
b) All the same --------------------------------------- Neutral SN.
c) Getting interested --------------------------------- Positive SN.
d) Getting highly interested ------------------------- High SI.
Q12. How do you like to shop most?

Behavioural Attribute: Collectivism vs. Individualism
a) With Friends ------------------------------------- Very Collectivist.
b) With Family -------------------------------------- Very Collectivist.
c) Go out and visit many stores and then decide—Neutral.
d) Shopping with great food and fun -------------- Collectivist.
e) Shop online --------------------------------------- Individualistic.
Q13. After you go back to your country how strongly you would like your
family to transact online?
Behavioural Attribute: Influence on Family Members
a) Very strongly -------------------------------- Strong Influence.

b) They are getting interested as I have
already send something -------------------- Positive Influence.
c) Will show them the benefits ----------------- High Influence.
d) Never Mind ------------------------------------ Negative Influence.
The last question will play a crucial role in understanding the psychology
of the subjects that will affect their family (encourage, discourage or no
effect at all) when they will go back home. The last question also covers
most of the behavioural attributes together. And the interrelationship runs
like a cycle. The inclusion of these types of Non-Parametric options for the
questionnaires is not new. In a research done by Shen et al (2004);
63
included this type of options and have shown the measures and scaling of
weighing the options. (Shen et al; January 2004, Extrinsic vs. Intrinsic
Motivations for Consumers to Shop Online, Information and Management,
42, pp. 401-413)
FIGURE-22 THE INTERRELATIONSHIP BETWEEN PBC, TRUST AND

ATTITUDE
ATTITUDE
TRANSACTION
INTENTIONS
TRUST
PERCEIVED
BEHAVIOURAL
CONTROL
Author Generated
The questionnaire survey has given a clear idea about solving the
research question. But, the relevance could be cross checked in order to
prove the answers more justified. The second method used is based on
Cognitive Theory of human psychology. Interviews were taken from
randomly selected subjects (n=4) A range of open ended and closed
ended questions were asked. The whole approach can be compared with a
type of Attitude Survey. The first set of questions was open ended
followed by closed ended questions as well.
3.3.1.2 The Interview
Q1. How do you like to shop?
64
Attribute Associated: Most of the answers will associate few words about
their desires and will also carry some words coming from their intellect.
But, the main idea here is to get the desires associated with it. It won’t be
surprising to get answers starting with “With my ……..” This might lead to
think about the behavioural aspect of staying together.
Q2. Do you love shopping?
Attribute Associated: The answer for this question will mostly be assertive.
Everyone loves to shop but, the thing to notice here would be the
enthusiasm they express with the answer.
Q3. How frequently you do shopping?
Attribute Associated: The answers will vary this time to greater extents
from each of them. But, the answers can reveal the buying habits. The
frequent someone is more PBC he has about shopping. It is easier to be
affected by Social Norms and Influence for this category of people. Also,
they won’t be scared about experimenting new things associated with
buying. This is because, they would like to keep them updated with the
world outside.
Q4. Do you like shopping online?
Attribute Associated: This a pretty straight forward question to help the

subjects think and set a mind frame about shopping online. The main idea
for asking this is just to get the answers from their Cortexes. Once they
say “Yes/No” they must have been preparing logic for “why do they do so”.
The main thing to observe here is the time they took to answer this
question was more than answering the next question that is “Why do they
do so?” That proves that they have already created logic before answering
Yes/No to this question.
65
Q5. If Yes/No then why?
Attribute Associated: This has been justified in the earlier question. It was
just to see whether they take more time on answering the previous
question or this one.
After their mind was set that this is a question answer session and they
were getting the time to think and deliver the answers, now they had to
say two words against one word said. The answers appearing here are
coming from their unconscious brain based mostly on emotions and not
intelligence.
1. Home
Attribute: There can be different range of answers for this but since it is a
Composite object people can associate it with mostly, comfort
Or family whichever is favourite to them.
2. Life
Attribute: The people who are positive in nature can associate words like,
fun. On the other hand people with negative attitude will
associate words like, long or some other words related to
difficulties.
3. Love
Attribute: The emotions associated with this either would be towards

a living being or a non materialistic. The mind frame will answer
the deepest emotions associated with this.
4. Fun
Attribute: Since, the subjects know that the interview is related to online
Shopping there are probabilities they will associate shopping
with this word. There are also chances of getting some other
66
range of random answers.
5. Wallet
Attribute: The main idea of asking previous words was to get answers
from their emotional front. All the previous words were related
with their emotions only. Now asking about wallet, there are
maximum chances of getting answers from their emotional
front. The main lookout is also to see whether they answer
debit/credit cards. Because it is necessary to transact online.
If they don’t mention electronic cards, this means they like to
Transact with Cash.
6. Internet
Attribute: This will throw some insight upon the perceived usefulness.
The words associated by the subjects would infer their PU of
the internet.
7. Shopping
Attribute: Here comes the final one. This was to see what words the
subjects are associating with this. The probable answers could
match their culture paradigm of being collectivist or individualist.
3.3.2 the Secondary Research:
The secondary Research is based on different research Journals and

articles as discussed earlier in chapter-2.
3.4 Do the models adopted answer the research question?
The first model adopted (Conceptual Model) based on analysing the

questionnaire gives the relationship between few factors responsible for
67
having the correct transaction intentions. This in itself is answering the

research question. “Is Culture also an important factor in deciding the
Online Shopping Behaviour of the Indian Subcontinent Students?”
The second model adopted by taking interviews of randomly chosen

subjects, further justify the evidence supported by the first model adopted.
68
Chapter-4 Data Findings and Analysis
4. Data Findings and Analysis:
The most important part of any research is the data findings and the
analysis. The process of data collection has been explained in the earlier
chapter. The questionnaires were analysed through SPSS version 14.0.
Each of the options was a measure of a particular behavioural trait and
weightage of marks were allotted across each of the answers.
Now, after getting marks obtained for each of the subjects, they were
being plotted in the SPSS “DATA SHEET and the VARIABLE SHEET”. The
variables lied in the Column and the subjects in the Row. Different tests
were run in order to justify the Hypothesis coined in the previous section.
Tests such as Reliability Tests, Frequency Tests and Graph Explorations
gave a clear picture to understand the existence of the proposed
hypothesis.
This section is divided into four parts,
4.1 Describing the Data.

4.2 Describing the Statistical Software Used.
4.3 Describing and Justifying the Tests Used.
4.4 Presenting the Analysing the Proposed Hypothesis.
4.1 Describing the Data:
The data that has been gathered is extracted from the information
obtained from the answers provided by the subjects (n=82). The
questionnaire that has been explained in the section 3.3.1.1 was merely
information about the online buying behaviour of the Indian Subcontinent
Students. But, each of the answers was subjected to a definite trait of the
behaviour. This was then measured on numerical scale, as each of the
answers had some weightage in numeric value.
4.2 Describing the Statistical Software Used:
The data obtained by assigning numeric values was still a raw data. And
hence needed to be analysed by some statistical software in order to run
69
tests and get the answers. This can also be termed as the need of
“Predictive Analytics”. The software used in this research to analyse the
interrelations between the factors influencing online transactional
behaviour is SPSS version 14.0. One of the reasons for choosing SPSS
over other softwares available is its ability to use multiple datasets at one
time. Moreover, it very easily identifies the invalid datasets and also
suggests the error codes which are accessible online from
http://forums.spss.com/code_center
The SPSS has three main layouts. The Data Editor, Output and the Main
Menu. The Data Editor displays the data sets filled up manually. In this
case it displays the names of the subjects in the rows and different
behavioural attributes in the column. The Output displays the results of
the different tests run. And the Main Menu holds the SPSS functions.
The opportunity to create datasets even with missing values has been
provided by implementing a C++ platform. Also, the non parametric tests,
required to justify the hypothesis is been provided with a wide variation of
option to choose from. The help menu is also very specific in this version
of the software. That is, there are options such as, Interactive Case
Studies, Statistical Coach, Results Coach, Tutorials and Chart Tutorials etc.
So, this was the perfect choice for analysing data for this research.
4.3 Describing and Justifying the Tests Used:
Before discussing the tests used, it would be wise to fist know some
definitions of some statistical words used here.
The Non-parametric Tests can be of three types.
1. To test Differences between Groups (with Independent Samples).

2. To test Differences between Variables (with Dependent Samples).
3. To test Relationship between Variables.
The necessary tests for this research would fall in the third category. That
is, the Relation Testing Between Variables in order to support the null
70
hypothesis proposed. Few major tests in this category would be Chi-

Square Test (Pearson Chi-Square), Spearman Co-efficient and Kendall Tau
Coefficients. The Chi-Square Test is an independent test but, the other
two are specifically the Non-Parametric Correlation tests.
It is very important to know which test should be run in order to analyse

the data in the correct light.
Figure- 23 Different Non-Parametric Tests
NON- PA RAM ET RIC T ESTS
Test Difference Test Difference

With Correlate the
With Dependent
Independent Variables
Sam ples
Sam ples
t-test, Sign test, Pierson’s Chi-

Mann-Whitney,
Wilcoxon’s Square,
Wald- Wolfow itz
Matched Pairs, Spearm an,
runs, Kolm ogorov-
McNem ars Chi- Kendall Tau,
Sm irnov,
Square, Cochran Coefficient
A NOVA/MANOVA,
Q, Friedm an’s Gam m a, Fisher
Kruskal-Wallis
Test Exact Test
Test
Adopted from Marques de sá, (2003); Applied Statistics using SPSS,

Statistica and Matlab
As Figure-21 refers, the tests that would be significant to this research

would be Pearson’s Chi-Square Test, Spearman R Test, and Kendall Tau
Test.
But, before moving to the tests directly some definitions about these
complex statistical analyses should be understood well.
Descriptive Statistics: is the statistical function that calculates the

standard set of descriptive statistics such as X, s, min, max and n.
71
Non Parametric Tests: are tests where the methods do not rely on the
estimation of parameters but describes the distribution of the variable of
interest in the population.
Chi-square test: is a tool to test whether a null hypothesis is true or not.

The results of a Chi-square are often provided in terms of p value which is
considered significant (assuming the null hypothesis true) if the value is
less than 0.05. One of the most common tests used for correlating two
variables in non-parametric tests is Chi-Square Test. The main idea is to
examine or analyse the relationship between two variables. While
performing Non-Parametric tests this is equivalent to the Pearson
Correlation Coefficient.
Pearson Correlation Test: This is also called as Pearson’s Product

Moment Coefficient. This is one of the very important tests of its kind. The
coefficient is obtained by dividing the Covariance of Trust and Attitude by
the product of their Standard Mean Deviation.
Spearman R Test: Spearman R Coefficient is the indirect product

moment of the Pearson Correlation Coefficient. Spearman R assumes the
variables under consideration are measured on ordinal rank order scale.
Kendall Tau Test: The Kendall Tau Index and the Spearman R, Rho is
somewhat similar in nature as far as the underlying assumptions are
considered. But they can not be termed similar in their magnitude as their
underlying logic is different. The formulas used for computing each of
them are also very different from each other. Although, there is a formula
to compute the inequality between them. Siegel and Castellan in 1988
calculated this inequality and placed a formula,
-1≤3 * KendaTau-2 * Spearman R≤1
df: is the degree of freedom.
p-value: is the assigned symbol of significance. In most of the cases any

p-value less than 0.05 is considered significant.
72
4.4 Presenting and Analysing the Proposed Hypothesis:
In this section the Data Analysis on the basis of above explained tests will
take place in order to examine the significance of the proposed hypothesis
to meet the Research Questions.
4.4.1 The first hypothesis:
H1: Higher the trust, more positive would be the attitude towards
online transactions.
A range of Non-Parametric tests were run in order to support this

hypothesis. The above hypothesis could only be justified if the statistical
tests run are proving it significant. The ideal approach would be, first to
find out whether the two variables used here (Trust and Attitude) are
similar or different. In simpler words, if there would be any similarity in
these variables then only arises the question of proving them related to
each other. But, if the variables are different then only
4.4.1.1 The Chai-Square Test:

In order to support the above null hypothesis the first test to run is the
Chi-Square Test. The reports are given below:
 The Validation Table.

Table-4 The Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Trust *
82 100.0% 0 .0% 82 100.0%
Attitude
Generated by SPSS v. 14.0
Table-4 is important as this is the validation table. It is showing the

distribution of number of subjects across the chosen variables that is,
Trust and Attitude. In the Column 1, N is the total number of subjects
73
questioned. In the second column, N is the number of participants did not

answer the questions related to Trust and Attitude. Therefore it can be
said that the number of samples studied was 82 and none of the datasets
associated with them are missing. Hence 100% of the cases are valid.
 The Crosstabulation Table.

Table-5 The Crosstabulation
Count
Attitude Total
Uncomfortable Share
(Shows the
Negative Comfortab benefits
attitude le (Strong
towards online (Positive positive
shopping) Attitude) attitude)
Trust NEVER DID IT (No
6 9 2 17
Trust)
Only once (Some
0 9 5 14
Trust)
More than once
0 12 8 20
(Strong Trust)
Couple of times
0 12 19 31
(Strongest Trust)
Total 6 42 34 82
Table-5 shows the distribution of the first variable (Trust) across the
second (Attitude). This table clearly shows that subjects that have done
online shopping couple of times (Showing more trust towards e-shopping)
are more with Positive Attitude and Strong Positive Attitude. Higher the
trust is getting, stronger is getting the attitude. Maximum number of
people having Strongest Trust (19) has Strong Positive Attitude.
 The Chi-Square Table.
Table-6 The Chi-Square Test
Asymp.
Sig. (2-
Value Df sided)
Pearson Chi-
31.343 6 .000
Square
74
Likelihood Ratio 28.388 6 .000

Linear-by-Linear
18.792 1 .000
Association
N of Valid Cases
82
Table-6 clearly shows the significance value of the Pearson-Chi Square as
0.000 which is less than the accepted value of 0.05.
 The Bar Chart

Figure-24 The Bar Chart Trust * Attitude
Generated by SPSS v 14.0
Again, the bar chart in Figure-22, shows that subjects having Strongest
Trust have Strong Positive Attitude towards expressing and sharing the
benefits of online shopping to others as well. This shows they have strong
intentions (Attitude) to transact online.
4.4.1.2 The Pearson Correlation
In order to justify and back up the null hypothesis more evidence is

provided by running another significant Non-Parametric Test called the
Pearson Correlation Coefficient Test. As, already discussed this test is
significant to identify any significant relationship between two variables.
75
The Test variable here is considered Trust and the Grouping Variable is
Attitude.
Table of Descriptive Statistics
Table-7 Descriptive Statistics
Std.
Mean Deviation N
Trust 1.7805 1.15496 82
Attitude 1.3415 .61302 82
Table-7 indicates the descriptive statistics related to the chosen variables.
The mean for both the cases are very close and greater than 1. Moreover,
the Standard Deviation is also low for both the cases.
 The Correlations
Table-8 Pearson Correlations
Trust Attitude
Trust Pearson Correlation 1 .473(**)
Sig. (2-tailed) .000
Sum of Squares 108.04
27.146
and Cross-products 9
Covariance 1.334 .335
N 82 82
Attitude Pearson Correlation .473(**
1
)
Sum of Squares
27.146 30.439
and Cross-products
Covariance .335 .376
N 82 82
** Correlation is significant at the 0.01 level (2-tailed).
Table-8 shows the Pearson Correlation between the variables Trust and
Attitude. As per the SPSS Manuals, it shows, a perfect r (1.000) for the
correlation between the same variable (Trust and Trust and Attitude and
Attitude, etc). Whereas, SPSS flags (**) correlations that are “Significant”
based on its p-value calculations. In this case the above table is showing
0.473 which is highly significant (as flagged by SPSS)
76
4.4.1.3 The Spearman’s Correlation:

After testing the variables with Pearson Correlation Test, testing it with
Spearman’s Rho will further consolidate the hypothesis. The main lookout
is whether these two variables are still being correlated when tested with
Spearman’s test as well.
 Table of Correlations
Table-9 Spearman Correlation
Trust Attitude
Spearman's Trust Correlation
1.000 .431(**)
Rho Coefficient
Sig. (2-tailed) . .000
N 82 82
Attitude Correlation
.431(**) 1.000
Coefficient
Sig. (2-tailed) .000 .
N 82 82
The results show that the Correlation between Trust and Attitude is
significant.
4.4.1.4 The Kendall Tau’s Correlation:
The situation now is the correlation has been proved by the Chi-Square
test.
Table-10 Kendall Tau’s Correlations
Trust Attitude
Kendall's Tau Trust Correlation
1.000 .392(**)
b Coefficient
N 82 82
.392(**) 1.000
Coefficient
N 82 82
77
The Pearson’s Correlation and the Spearman’s Rho Correlation are also
showing significant evidence in the favour of the null hypothesis proposed.
Now, ultimately justifying it with Kendall Tau Correlation would further
strengthen this. The significance is very relevant (upto 0.01 level) as
shown in Table-10.
4.4.1.5 The Histogram:

Even the Kendall Tau’s Correlation is accepting the significant correlation
between the two variables that is, Trust and Attitude. So, it can be said
that Trust and Attitude are correlated and it might be possible that both of
them share a directly proportional relation to each other (as referred by
Table-5 of Crosstabulation). But, to justify this thoughts the Histogram
can provide more light.
Figure-25 The Histogram (Trust vs. Attitude)

It can be seen from the above figure that, Subjects having Higher Trust
have High/Strong Positive Attitude towards Online Transaction. The
statistical evidence provided by applying various tests shoes results in
favour of the hypothesis proposed and hence justifies it.
78
4.4.2 The second hypothesis:
H2: The more the people are collectivist, more they will have a
positive attitude towards following others in the group and
indulge themselves in the same activity.

 The Validation Table
Table-11 The Validation Table
Cases
Valid Missing Total
Collectivist vs.
Individualist * 82 100.0% 0 .0% 82 100.0%
Attitude
The validation is again 100% as all the subjects have answered both the
questions with which these variables were associated.
Now, the table of Crosstabulation can throw some more light on the
significance of this hypothesis.
 Crosstabulation
Table-12 Collectivist vs. Individualist * Attitude Crosstabulation
Attitude
Uncomfortable
(Shows Share the
Negative benefits
attitude Comfortable (Strong
towards online (Positive positive
shopping) Attitude) attitude) Total
Collectivist Shop online
0 2 4 6
vs. (INDIVIDUALIST)
Individualist Visit many stores and
2 5 2 9
decide (NEUTRAL)
79
Shopping, Great food,

Having Fun 0 9 7 16
(COLLECTIVIST)
With friends
(COLLECTIVIST TO A 0 21 9 30
GREATER EXTENT)
With family
(COLECTIVIST TO THE 4 5 12 21
GREATEST EXTENT)
Total 6 42 34 82

 The Chai-Square
Table-13 Chai-Square
Asymp.
Sig. (2-
Value Df sided)
Pearson Chi- 20.059(a
8 .010
Square )
Linear-by-Linear
.004 1 .950
Association
N of Valid Cases
82
a 9 cells (60.0%) have expected count less than 5. The minimum expected count
is .44.
The Chi-Square is significant to some extent 0.010 is less than 0.05 which
is the accepted value of significance.
4.4.2.2 Pearson Correlation Coefficient:

 The Pearson Coefficient
Collectivist
vs.
Individualist Attitude
Collectivist Pearson
1 -.007
vs. Correlation
Individualist Sig. (2-tailed) .950
N 82 82
Attitude Pearson
-.007 1
Correlation
N 82 82
80
The significance is not flagged by SPSS and hence according to Pearson

Correlation Calculations these two variables don’t have any significant
correlation. Now, it has become very important to test it with Spearman’s
and Kendall-Tau’s Test to get a proper picture.
4.4.2.3 The Spearman Correlation Coefficient:
 The Spearman Coefficient

Table-15 Spearman’s Correlations
Collectivist
vs.
Individualist Attitude
Spearman's Collectivist Correlation
1.000 .032
Rho vs. Coefficient
Individualist Sig. (2-tailed) . .773
N 82 82
.032 1.000
Coefficient
N 82 82

Again, the Correlation Coefficient is not flagged by SPSS; this means this
two variables don’t have a very significant correlation. But, testing it with
Kendall Tau can confirm the scenario.
4.4.2.4 Kendall-Tau’s Test

 Kendall-Tau’s Coefficient
Table-16 Kendall-Tau’s Correlations
Collectivist
vs.
Individuali
st Attitude
Kendall's Collectivist Correlation
Tau b vs. Coefficient 1.000 .029
Individualist
N 82 82
.029 1.000
Coefficient
N 82 82
81
The correlation between the two selected variables “Collectivist vs.

Individualist and Attitude” is not significant. None of the above tests have
confirmed any significant correlations. Hence, the hypothesis proposed in
this research (H2) is not supported.
4.4.3 The third hypothesis:
H3: Collectivism is correlated to the Societal Norm and seems to

share a directly proportional interrelation.
4.4.3.1 The Chai-Square test:

 The Validation table
Table-17 The Validation table
Cases
Valid Missing Total
Collectivist vs.
Individualist * 82 100.0% 0 .0% 82 100.0%
Societal Norm

 The Crosstabulation
Table-18 Collectivist * Societal Norm Crosstabulation
Societal Norm
Getting Very I never
Its all the interest Interested bought in
I NEVER same ed (Can my
DID IT (used to towards even buy country
ANYWH buy there it used but now i
ERE as well) items) do Total
Collectiv Shop online
ist vs. (INDIVIDUALIS 0 4 1 0 1 6
Individu T)
alist Visit many
stores and
1 0 4 1 3 9
decide
(NEUTRAL)
Shopping, Great
food, Having
Fun 0 3 3 0 10 16
(COLLECTIVIST
82
With friends
(COLLECTIVIST
0 7 3 7 13 30
TO A GREATER
EXTENT)
With family
(COLECTIVIST
TO THE 0 2 2 2 15 21
GREATEST
EXTENT)
Total 1 16 13 10 42 82
The marked area in the Crosstabulation table clearly shows the direct
correlation between these two variables.
 Chi-Square
Table-19 Chi-Square Tests
Asymp.
Sig. (2-
Value df sided)
Pearson Chi-
34.178(a) 16 .005
Square
Linear-by-Linear
7.842 1 .005
Association
N of Valid Cases
82
a 21 cells (84.0%) have expected count less than 5. The minimum expected count is .07.
The Chi-Square ratio is significant since the ratio is less than 0.05.
 The Bar Chart
Figure-26 Bar Chart
83
Bar Chart
Soceital Norm
14 I NEVER DID IT
ANYWHERE
Its all the same
12 (used to buy there
as well)
10 Getting interested
towards it
Count
8
Very Intersted (Can
even buy used
items)
6 I never bought in my
country but now i do
4
0
Shop online Visit many stores Shopping, Great With friends With family
(INDIVIDUALIST) and decide food, Having Fun (COLLECTIVIST (COLECTIVIST TO
(NEUTRAL) (COLLECTIVIST) TO A GREATER THE GREATEST
EXTENT) EXTENT)
Collectivist vs. Individualist

4.4.3.2 The Pearson Correlation
 Table of Pearson Correlation
Table-20 The Pearson Coefficient
Collectivist
vs. Societal
Individualist Norm
Collectivist Pearson
1 .311(**)
vs. Correlation
Individualist Sig. (2-tailed) .004
N 82 82
Societal Pearson
.311(**) 1
Norm Correlation
N 82 82
The Pearson Correlation Coefficient is showing a significant correlation

between these variables. The significance level (p-value) is upto 0.01.
84
4.4.3.3 The Spearman’s Correlation
 Table of Spearman’s Correlation
Table-21 The Spearman Correlation Coefficient
Collectivist
vs. Societal
Individualist Norm
Spearman's Collectivist Correlation
1.000 .271(*)
Rho vs. Coefficient
N 82 82
Societal Correlation
.271(*) 1.000
Norm Coefficient
N 82 82
* Correlation is significant at the 0.05 level (2-tailed).

The Spearman’s Correlation Coefficient is also showing a significant

correlation between these two variables.
4.4.3.4 The Kendall-Tau’s Correlation
 Kendall Tau’s Test

Collectivist
vs. Societal
Individualist Norm
Kendall's Tau Collectivist Correlation
1.000 .232(*)
B vs. Coefficient
N 82 82
Societal Correlation
.232(*) 1.000
Norm Coefficient
N 82 82

The Kendall Tau’s Correlation Coefficient is also suggesting the correlation

between these two variables.
 The Histogram
85
Figure-27 Histogram
but now i do
my country buy used
15
bought in (Can even

I never
10
0
15
Intersted
items)
Very
10
Soceital Norm
Frequency
15
interested
towards it
Getting
10
to buy there
same (used I NEVER DID
15
Its all the

as well)
10
ANYWHERE
15
10
IT
5
0
-1.00 0.00 1.00 2.00 3.00 4.00 5.00
Collectivist vs. Individualist

4.4.4 The fourth hypothesis
H4: More the Trust, More positive would be the Perceived Control.
4.4.4.1 The Chi-Square Test

Table-23 Validation Table
Cases
Valid Missing Total
Trust * Perceived
82 100.0% 0 .0% 82 100.0%
Control

The validation percentage is 100%
 Crosstabulation
Table-24 Trust * Perceived Control Crosstabulation
86
Perceived Control
Being
Pay explained
when Transacti Reconsoli get the
ANY you get on dated value advantag
TWO the Guarant after added es of
OR deliver ee by sales Servic buying
MORE y bank services es online Total
Tru NEVER DID IT
5 6 3 2 1 0 17
st (No Trust)
Only once 7
2 0 5 0 0 14
(Some Trust)
More than once
5 3 9 2 0 2 21
(Strong Trust)
Couple of times
3 4 11 7 4 1 30
(Strongest Trust)
Total 15 13 30 16 5 3 82
 The Chai-Square
Table-25 Chi-Square Tests
Asymp. Sig.
Value Df (2-sided)
Pearson Chi-
23.288(a) 15 .078
Square
Linear-by-Linear
4.741 1 .029
Association
N of Valid Cases
82
Generated by SPPSS v 14.0
The Chai-Square Test is showing some significant correlation between

these variables. But, its too early to say that there is definitely some
relationship between these two until tested by other tests as well.
4.4.4.2 The Pearson Correlation Coefficient
87
 The Pearson Correlation Coefficient

Perceived
Trust Control
Trust Pearson
1 .242(*)
Correlation
N 82 82
Perceived Pearson
.242(*) 1
Control Correlation
N 82 82

SPSS has Flagged the coefficient at 0.05 levels and hence it can be said
that there might be some correlation. But testing it with other tests will
confirm it.
4.4.4.3 The Spearman’s Correlation Coefficient
 The Spearman’s Coefficient

Table-27 Spearman’s Correlations
Perceived
Trust Control
1.000 .240(*)
Rho Coefficient
N 82 82
Perceived Correlation
.240(*) 1.000
Control Coefficient
N 82 82

The Spearman’s Correlation Coefficient is showing a significant correlation
between the two variables at a 0.05 level which is quite acceptable.
4.4.4.4 The Kendall Tau’s Correlation Coefficient
88
 The Kendall Tau Coefficient

Perceived
Trust Control
1.000 .197(*)
b Coefficient
N 82 82
Perceived Correlation
.197(*) 1.000
Control Coefficient
N 82 82

The Kendall Tau’s coefficient is also showing a significant correlation at
0.05 levels. So, it can be said that these two variables are correlated.
 The Histogram
Figure-28 Histogram Trust*PC
89
4.4.5 The fifth hypothesis:
H5: More the Trust, More would be the initiative to Influence

Family members.
This hypothesis is again trying to correlate Trust and its Influence on the
Family Members of the subjects (Indian Subcontinent Students). The
psychological effect of trust on the family members could solve one of the
Research Questions. Again, to justify this hypothesis strong statistical
result would be required and similar tests would be run to do that in the
same order.
90

Table-29 Case Processing Summary
Cases
Valid Missing Total
Trust * Influence
on Family 82 100.0% 0 .0% 82 100.0%
Members

The validation table here is showing all the 82 cases are valid and hence
the validity percentage is 100%.
 Table of Crosstabulation
This table will show the distribution of the first variable (Trust) over the
other (Influence on Family members) in a single table generated. The
main idea is to locate whether the dense population of Subjects having
Strong/Strongest Trust is lying across the Population of Subjects intend to
influence their family Strongly/Very Strongly.
Table-30 Trust * Influence on Family Members Crosstabulation
Influence on Family Members

already
interested
towards it
(coz i have Will
send some show
Never online them the Very
Mind gifts) benefits Strongly Total
Trust NEVER DID IT (No
7 0 9 1 17
Trust)
Only once (Some 0
2 11 1 14
Trust)
More than once
(Strong Trust) 6 4 6 5 21
Couple of times
(Strongest Trust) 2 3 13 12 30
Total 17 7 39 19 82

The circled area is showing that subjects Intended to influence their family
about online transactions have got Strong/Strongest trust.
91
 The Chi-Square Test

Table-31 Chi-Square Test
Asymp.
Sig. (2-
Value Df sided)
Pearson Chi- 24.688
9 .003
Square (a)
Linear-by-Linear
7.241 1 .007
Association
N of Valid Cases
82
a. 10 cells (62.5%) have expected count less than 5. The minimum expected
count is 1.20.
The p-value for the Pearson Chi-Square test is revealing a significant
relation between the two variables considered. The p-value is 0.003 which
is less than the acceptable norm of 0.05
 The Bar Chart
Figure-29 Bar Chart Trust*Influence on Family Members

4.4.5.2 The Pearson Correlation:
92
 Table of Descriptive Statistics

Std.
N Minimum Maximum Mean Deviation
Trust 82 .00 3.00 1.7805 1.15496
Influence on
Family 82 .00 3.00 1.7317 1.04289
Members
Valid N (list
82
wise)

 The Pearson Correlation Coefficient
Table-33 Pearson Correlation Coefficient
Influence
on Family
Trust Members
Trust Pearson
1 .299(**)
Correlation
N 82 82
Influence on Pearson
.299(**) 1
Family Correlation
Members Sig. (2-tailed) .006
N 82 82

The Pearson Correlation Coefficient (0.299) is flagged and that means the
variables are significantly correlated to each other.
4.4.5.3 The Spearman’s Correlation:
The Spearman’s Rho (0.318) is also suggesting a significant correlation

between these two variables.
Table-34 Spearman’s Correlation Coefficient
93
Influence
on Family
Trust Members
1.000 .318(**)
Rho Coefficient
N 82 82
Influence on Correlation
.318(**
Family Coefficient 1.000
)
Members
N 82 82
4.4.5.4 The Kendall Tau’s Correlation:

After being proved a significant correlation between the two variables by
previous tests done performing a Kendall Tau’s Test would again signify
the findings in the form of a Hypothesis.
 Table of correlations
Table-35 Kendall Tau’s Coefficient
Influence
on Family
Trust Members
1.000 .270(**)
b Coefficient
N 82 82
Influence on Correlation
.270(**) 1.000
Family Coefficient
Members Sig. (2-tailed) .005 .
N 82 82
The Kendall Tau’s Coefficient is also telling the correlation between the
chosen variables is significant.
 The Histogram
94
The histogram will be helpful in showing the type of correlation between

the two variables by generating graphs and intercept of normal curves.
The important thing to observe here is the level of trust being generated
at the high/highest influential level.
Figure-30 The Histogram Trust*Influence on Family Members

Hence as all the above test results suggest the hypothesis is justified.
4.4.6 The sixth hypothesis
H6: Higher the Social Influence, stronger would be the Attitude to

Transact Online.
4.4.6.1 Chi-Square Test:
95
 `The Validation Table:

Table-36 Validation Table
Cases
Valid Missing Total
Social Influence *
82 100.0% 0 .0% 82 100.0%
Attitude

All the 82 cases are valid and hence have a 100% validation percentage.
 Table of Crosstabulation
Table-37 Attitude*Social Influence Crosstabulation
Attitude Total
Uncomforta
ble (Shows
Negative Share the
attitude benefits
towards Comfortable (Strong
online (Positive positive
shopping) Attitude) attitude)
Social Doesn't Matter 9
Influence (Least Social 0 11 20
Influence)
Quite Normal
(Some Social 0 15 17 32
Influence)
WOW!!! (High
4 13 4 21
Social Influence)
Let's give it a try
(Highest Social 2 5 2 9
Influence)
Total
6 42 34 82

The high density area across both the variables has been shown by the
circle.
 Chi-Square Test
96
Table-38 Chi-Square Test

Asymp. Sig.
Value Df (2-sided)
Pearson Chi-
16.539(a) 6 .011
Square
Linear-by-Linear
11.210 1 .001
Association
N of Valid Cases
82

The p-value is significant and showing some correlation between these
variables. (p-value 0.011‹0.05).
4.4.6.2 Pearson Correlation:
 Table of Descriptive Statistics

Std.
Mean Deviation N
Social
2.2317 .94671 82
Influence
Attitude 1.3415 .61302 82
 Pearson Correlation Coefficient

Table-40 Pearson Coefficient
Social
Influence Attitude
Social Pearson
1 -.372(**)
Influence Correlation
N 82 82
Attitude Pearson
-.372(**) 1
Correlation
N 82 82
97
As the Pearson Coefficient is flagged, it means that these two variables

are correlated. Some doubt might arise about the negative resultant. But,
the value of the coefficient should lie between +1 and -1. It is considered
that all the pairs of examined variables are concordant if this value is +1.
Similarly, all the pairs of examined variables are considered discordant if
the value is -1. So, if the value is between it is till significant.
4.4.6.3 Spearman’s Correlation:
The Spearman’s Correlation Coefficient could also throw some light upon
the significance of the correlation.
Table-41 Spearman’s Correlation Coefficient
Social
Influence Attitude
Spearman's Social Correlation
1.000 -.358(**)
Rho Influence Coefficient
N 82 82
-.358(**) 1.000
Coefficient
N 82 82
Again the significance of correlation is worth thinking that the two

variables are significant (the negative value is explained earlier).
4.4.6.4 Kendall Tau’s Correlation:
The Kendall Tau test will further harden the correlation.
 Table of Kendall Tau’s Correlation Coefficient
98
Table-42 Kendall Tau’s Correlation

Social
Influence Attitude
Kendall's Tau Social Correlation
1.000 -.322(**)
b Influence Coefficient
N 82 82
-.322(**) 1.000
Coefficient
N 82 82

The Kendall Tau test is also telling that there is a significant Correlation
between Attitude and the Social Influence.
 The histogram
Figure-31 The Histogram Attitude*Social Influence

The Histogram suggests that subjects affected highly by Social Influence
have High Attitude.
99
All the tests done above are supporting the correlation between Social
Influence and Attitude. Hence, the Hypothesis is justified.
4.4.7 The Interview Interpretation:
Now after the analytical tests are done and suggesting the hypothesis
holds some relevance, cross checking it with the second method proposed
will further substantiate the relations.
Table-43 The Interview

Suchika Suparna Sanjana Parashar
1. How do With With Friends Family

you shop? Friends Parents,
Friends
2. Do you Yes Very Yes Yes
Love it? Much
3. How Once in 2 Once in Twice a Once a
Frequently? weeks Month month month
4. Online Not Really No No No, have
Shopping? not tried
5. Why? Can’t touch Can’t see Takes time Never done
Things things to get it
things
6. Home Parents, Mother, Family, No Father,
Security Father worries Mother
7. Life Great, Good Fun, Great Love, Good Enthusiasm,
Excitement
8. Love Friendship, Feeling, Flirting, Girl Friend,
Great Emotion Emotions Wife
feeling
9. Fun Happy, Shopping, Friends, Friend,
Happy Home Party Family
moments
10. Wallet Money, Money, Money, Rupee,
cards Documents Key Pound
11. Internet Chat, Chat, Films Chat, Mail Surfing
Entertainme
nt
12. Shopping Fun, money Wow!, Great, Fun Friends,
Clothes Family
Author Generated
100
All the answers here for Q1. suggest that all the subjects are collectivist in
nature. They all like to shop with friends or family. That is, they want to
be together. Q2. as discussed earlier was assertive with most of the
answers. The enthusiasm was quite high with people having high PBC
shown in the next answer. Answer 4. shows it is easier to be affected by
Social Norms and Influence for people who buy frequently. For example,
“Suchika” is a more frequent buyer than “Parashar” and wants to keep her
updated with the new world. She answers “debit cards” to Q 10. But on
the other hand “Parashar” answers “Rupee and Pounds” So, in other
words “It is easier for Suchika to be affected by SI easily” (SI score for
Suchika is 4/4 and for Parashar it is 3/4, according to questionnaire
review) Answer 5 is the big one, the real problem of transacting online
has been answered here. The major problem is still experiencing the
product. That is, the trust is one of the biggest issues impacting Online
Transaction Intentions in the Indian Subcontinent Students which is in
accordance with the Hypothesis as well. Answer 6 is also indicating the
collectivist nature of the subjects. Most of the subjects have answered
Family, Father, and Mother etc. For a kid the most valuable thing is Father
and Mother because they provide the most secured place for him. Hence,
home also stands for security. Answer 7 reveals that all the subjects were
positive in nature. All of them have uttered positive words related to life.
Answer 8 as discussed earlier was a stage to take their mindsets to an
emotional level and as expected all of them have said emotional words
such as friendship, great feeling. Answer 9 was a tricky one to know the
attributes they add to Fun. It can be observed that most of them have fun
with their friends and family which again suggests of being collectivist.
The answer 10 has already been discussed earlier in this section. Most of
them have answered Money, Pound etc which suggests Perceived trust is
still low in them. Answer 11 was cross checking their perceived usefulness
of Internet. Most of them Surf, Chat/mail and Use it for entertainment.
This shows the perceived usefulness index is low and hence online
transaction intention is also low. Answer 12 could have many dimensions.
But, most of the answers here have reflected the culture paradigm and its
effects on the subjects. Most of them have answered in a collectivist way
and have associated Friends and Family with this. So, two things are
101
getting prominent from this. To say it in a very generalised way the choice
of words would be, the subjects were collectivist by culture and the and
no one likes to shop online. The third hypothesis is showing that
Collectivism is directly proportional to Societal Norm (which has a direct
relation with Online Transaction Intention) and this is what the research
question is.
So, in a nutshell five out of six proposed hypothesis were find to be true.
Table-44 Hypothesis Snapshot

Chi- Pearson Spearman’s Kendall Status
Square Correlation Rho Tau’s
Value Coefficient
H1 .000 Significant at Significant at Significant at Supported
0.01 level 0.01 level 0.01 level
H2 0.010 Not Not Significant Not Not

Supported
Significant Significant
H3 0.005 Significant at Significant at Significant at Supported
Author Generated
5. Discussion
102
Chapter-5 Discussion
In this chapter there would be a detailed discussion on what the Research

Question was? How well was it addressed and what are the issues that
have risen while doing this research? The review of the Research Design
will also be discussed in brief.
5.1 The Research:
The models that have been applied in this research have helped to answer
the research question. There were many models available justifying ease
of technology or acceptance of technology. But to answer the Research
Question (“Is Culture also an important factor in deciding the Online
Shopping Behaviour of the Indian Subcontinent Students?”) it was
necessary to include the Culture Paradigms other than the Theoretical
Models that were available. Models such as TRA, TPB, TAM or UTAT would
have done the job very well but their limitation was they all lacked the
culture paradigm which was the Research Question. The conceptual model
developed by Pavlou and Chai did included three of the culture paradigms
proposed by Hofstede. But the model was developed to compare the
Online Behaviour between two countries (U.S.A and China). The Power
Distance theory from the culture theory did not hold good in this case. As
the IBM Survey was designed differently and had some other Research
Question. Hence inclusion of it would have made no sense. Similar is the
case with Gender difference. As the respondents to this research were
randomly selected, it had nothing to do with the gender. Although Pavlou
and Chai included the high power distance in their model. The main point
to consider here is “who are the subjects?” The Indian Subcontinent
Students from India, Pakistan And Sri-Lanka who are staying here for the
last one or two years. And if at all their psychology changed about the
Online Shopping that is going to get affected mostly by the Social
Influence and Societal Norms. It was found that it is the “Trust” which
affects the Transaction Intentions to the most. This research contains
three hypotheses that have been proposed and justified. And out of three
two were related to trust. The first hypotheses proposed “Higher the Trust,
more positive would be the Attitude (to transact online)”. In other words,
103
subjects with higher Trust were found to have high positive attitude
towards online transactions. This has been justified by running various
statistical tests available. Whereas, in the second Hypothesis, where it
said “Trust affects Influence on Family members” also relates Trust with
the other Research Objective (Influence on Family Members). One of the
Research Objectives was to know how the psychology of these subjects
will Influence their family members about online transactions. The
statistical tests have shown that these two variables are correlated. Hence
it can be said that trust generated on the subjects may induce some
influence on the family members to transact online. The third hypothesis
said “Social Influence has a direct affect on the Attitude”. Several tests
were run in order to test whether this hypothesis holds any relevance.
After doing several statistical tests it was found that Attitude and Social
Influence are correlated. A point to notice would be 62 out of 82 subjects
restraining high Social Influence have positive attitude towards e-
Shopping. So there is definitely a cultural paradigm existing that has a
direct affect on Transaction Intention. The research question and the
objectives were answered by the conceptual model applied. But, applying
some simple method on a smaller number of subjects to cross-check the
results would yield more consolidation to the justification. An interview
was taken from five randomly chosen subjects and the behavioural traits
were cross-checked referring the same conclusion. The interesting fact is
four out of five subjects have low social influences characterised by
negative attitude towards online shopping. This again proves the third
hypothesis. Most of the subjects in spite of having credit cards still don’t
associate it with the word Wallet. As discussed in the earlier section with
the example of “Parashar and Suchika” and their Social Influence Index is
showing the validation of the answer to the Research Question. The
portrayal of different theories as discussed in Chapter-2 has provided a
platform for the Secondary Research. This was the initial stage to know
the works that have been done previously in this context. It is true that
Secondary Research lays a foundation for the Primary Research. It is
almost mandatory to know the previous researches that have been done
in that context because it provides the shape to the entire research. The
Primary Research was based on the information gathered from the
104
Secondary Research and was done by doing a survey (by distributing

questionnaires and Interviews).
5.2 Some Interesting Facts:
As far as the questionnaire is concerned there were some interesting

points to notice. A good number of subjects in spite of having high
perceived value and use of internet still considered e-shopping as the last
option. In simpler words, they know how to shop online but they just use
it as a tool to compare prices or to know where and whether the product
is available.
Another issue was most of them who have bought something online in
their country have asked a common question against question number 5
“Does it include reserving railway or air tickets?” while filling up the
questionnaire. This means they included booking online tickets in the
category of e-Shopping.
One of the doubts might arise that “How come the options in the
questionnaire are not measurable?” The main idea behind this was to get
the answers from their emotional front. For example, providing options
like Agree, Strongly Agree, Disagree or Strongly Disagree would not have
extracted the right emotions they have. Someone might strongly agree
that Perceived use of Internet should be to a greater extent. But he
himself doesn’t indulge in more than two applications of it. In order to
avoid such irregularities the questionnaire was designed in such a way
that, the options were connected to certain emotions. Which in turn have
helped them to pick the most suitable option for them.
One of the limitations of this research that it lacks the specification of

products. In other words, specified category of products could have given
different results.
5.3 Relation to Previous Works:
105
The findings of this research are supported by many earlier researches

done by other researchers.
Dutta and Roy (2001) in the Twenty Second International Conference on

Information Systems, have clearly mentioned that Internet Diffusion is
driven by Social as well as technological factors. One of the Social Factor
have been identified here as the Social Influence. The Second Hypothesis
is correlating the Social Influence and Attitude to Transact Online. (Dutta
A, Roy R, 2001; THE MECHANICS OF INTERNET DIFFUSION IN INDIA:
LESSONS FOR DEVELOPING COUNTRIES, Twenty-Second International
Conference on Information Systems, New Orleans, U.S.A)
Mahmood et al; (2004) while predicting a global Online Shopping

Behaviour have used a Structural Equation Model and have identified
Trust as an important factor to decide the e-commerce success. In an
article presented in International Journal of e-commerce they published
the study findings as, “…. Trust, Economic conditions, and practical
Technology Understanding of online shoppers significantly and positively
contribute to their online shopping behaviour”. This is in accordance with
the findings of the first hypothesis of this research. (Mahmood et al; 2004,
Measuring the Business Value of Information Technology in e-Business
Environments, International Journal of Electronic Commerce, 9 (1), pp. 10.
5-8)
Ford et al; (2004) predicts Trust as one of the most vital issues in online
shopping. One more aspect of looking at it is to get repeat customers,
which also decides the success. Their hypothesis was “The higher the level
of online shopper’s trust, the more they will buy online” which again
supporting the hypothesis is proposed in this research. Furthermore, they
also proposed that the exposure to internet is directly proportional to the
trust level generated. (Ford et al; 2004, Online-Shopping Behaviour:
Cross-Country Empirical Research, International journal of Electronic
Commerce, 9 (1), pp. 10. 9-30)
A real life example on the issue of trust can provide on hand exposure in
this context. In an article published in 2004 it was found that announcing
106
an internet security breach affects the market value of the announcing

firms in a negative way. The firms lost 2.1% of their market value in just
two days. And an average loss in capitalisation for each breach was more
than $1.5 billion. Another interesting fact was within these two days the
online security developers experienced an abnormal return of 1.3% which
was more than $1 billion in currency. (Cavusoglu et al; 2004, The effect of
Internet Security Breach Announcements on Market Value: Capital Market
Reactions for Breached Firms and Internet Security Developers,
International Journal of Electronic Commerce, 9 (1), pp. 69. 69-104)
Another interesting study was done by Mohan and Keat (2004) in order to
understand how user trust can enhance the acceptance of electronic
commerce by using TAM. They argue that if there is not enough Trust
being generated there is no reason that the consumers will transact using
that interface. This is another way to say what have been said in
hypothesis 1. (Mohan A and Keat K T, September 2004, Integration of
TAM Based Electronic Commerce Models for Trust, The Journal of
American Academy of Business, pp. 408)
As quoted by Suh and Hun (2003) “…. trust is the mediating belief of the
relationship among the determinants of e-commerce acceptance”. (Suh, B.
& Han, I., 2003; The impact of customer trust and perception of security
control on the acceptance of electronic commerce, International Journal of
Electronic Commerce, 7(3), 135-161.
As per the findings of Davis (1989), Perceived Use or Usefulness

influences a person’s attitude towards using the Internet for transaction.
But Hasan and Sukkar (2005), argues that Davis ignored the Cultural
Influences while implementing TAM. Even they agree that Cultural factors
influence the consumer behaviour and it is difficult to define these factors.
But it should be worth implementing these factors as it is most likely that
these factors will affect the behaviour to a greater extent when going
cross-country. They while analysing these effects in Arabic Countries have
found that the findings are consistent with Hofstede’s (1980) cultural
theories. But they also failed to find any significant correlation between
107
Collectivism and Perceived Use. (Sukkar A A and Hasan H, 2005, Toward a

Model for the Acceptance of Internet Banking in Developing Countries,
Information Technology for Development, 11 (4), pp. 381-398)
Another study depicting affects of cultural traits was done by Singh et al;
2006 which suggests that Subjective Norms and beliefs are highly
influenced by cultural values of a society and would be a very important
factor in deciding the Online Transaction Intentions. This is in accordance
with the third hypothesis (H3). The Cultural Score vs. Cultural Adoption
was found highly significant (p-value was less than 0.05) (Singh et al;
February 2006, A Cross-Cultural Analysis of German, Chinese and Indian
Consumer’s Perception of Web Site Adoption, Journal of Consumer
Behaviour, 5, pp. 56-68)
Another piece of Research whilst comparing U.S buying behaviour with

Thailand done by Palvia and Muthitacharoen (2002) also found
Collectivism vs. Individualism as a very important trait. They say “…. at
least, two cultural dimensions (Hofstede 1991) come into play:
uncertainty avoidance and individualism/collectivism. Thais are high in
uncertainty avoidance and are a more collectivist society. Internet buying
requires higher levels of risk taking and is more impersonal rather than a
group activity compared to conventional shopping. These two dimensions
are thus consistent with their shopping behaviour.” (Palvia P and
Muthitacharoen A, 2002; B2C Internet Commerce: A Tale of Two Nations,
Journal of Electronic Commerce Research, 3 (4), pp. 210, 201-212)
A set of six hypotheses were proposed and five of them were supported.
There is still some scope left to compare the other cultural traits
considered by Hofstede (1985) against the major issues like Trust,
Perceived Behavioural Control and Attitude. A scope of disintegrating each
factor and finding actual and detailed interrelationship can throw some
more light upon the scenario of interdependency of these factors.
6. Conclusion and Recommendations
108
Chapter-6 Conclusion and Recommendations
The research question asking to correlate the Cultural Trait

(Collectivism/Individualism) and Online Transaction Intentions of the
Indian Subcontinent Students is being explained through this research.
The Research Objective of correlating the Present Behaviour of these
students and assumption of possible range of influence on their family
members has also been achieved. In order to find out the answers, a
model was designed merging important factors from previous theories
correlating Behavioural and Technological Factors (TRA, TPB, TAM, and
UTAUT) with Online Transaction Intentions and one of the Cultural
Factors, Collectivism vs. Individualism (Hofstede 1998). A similar work
was done by Pavlou and Chai (2002) proposing the Conceptual Model,
where three traits from the culture paradigm were included. But, this
research was interested in only one of them in order get a wider and
broader focus on its effects on the other non-cultural factors included. So,
to solve the purpose a model was designed on the basis of the secondary
research. After going through a good number of research papers, articles
and journals some of the non-cultural factors (which found to be very
relevant in almost every research paper and article) and one cultural
factor were brought in the same screen. This was the base of the model
proposed in this research. Considering only one of them in the proposed
model in this research was mainly to have a detailed focus on its
implications on the other factors included. For this purpose only some of
the other factors (Perceived Behavioural Control and Subjective Norm)
were being disintegrated into pieces and have been studied. A total of six
hypotheses were proposed correlating each other and five of them were
supported from the statistical tests done. The correlations were found to
be considerable at a very significant level (min. p‹0.05, max. p‹0.001).
But until and unless the validity of the model was proved by different
statistical tests it was of no use. So, the need of the hour was a Primary
Research.
The Primary Research was done on the basis of survey questionnaires

designed in such a way that every question was related to some of the
factors included in the model. The questionnaire was designed in a non-
109
parametric way and the emotions were weighed on an ordinal scale.

Grades were allocated across each options present in the questionnaire.
This was done in order to avoid any irregularities in the thinking of the
participants. It is always easy to attach emotions with thinking rather than
going strictly on parametric method (Agree/ Strongly
Agree/Disagree/Strongly Disagree). For, example someone might disagree
about shopping online but ticking a non parametric questionnaire he might
choose the option “Don’t Mind”. The thin line between disagree and
strongly disagree is sometimes hard to achieve.
The survey was done on 82 participants. The basis of choosing

participants was in accordance with the need of the model, which are the
students from the Indian Subcontinent. The survey was done both online
and manually. The manual survey was mainly done in the Robert Gordon
University Library. Such a place for the manual survey was chosen
because it was the place where every student goes at least once in a day.
The questionnaire was filled in by 82 students. Now, the most important
part was to analyse all those questionnaires.
There were many tools available to do that but this research used the
SPSS v 14.0 simply because of two reasons. First the Availability, and
Second Ease and Wide Dimensions to Use. The Analysed data was then
cross-checked by using a method (which is not very poplar though) from
the cognitive psychology. An interview was taken from four randomly
picked subjects and the affect of the cultural trait was reconfirmed.
The hypotheses were analysed through SPSS and five of them were
supported by the results of the Test’s done. The five of them were
correlating the cultural factors with the non-cultural factors. The Research
Question was trying to correlate the Collectivism and Transaction
Intentions. The study was trying to find out the answer, whether
collectivism vs. individualism affects the online transaction intention of the
Indian Subcontinent Students. And the answer was yes it did. Collectivism
nature of these students affects the Transaction Intentions by affecting
the Societal Norm first. And then the Societal Norm affects the transaction
110
intentions. It was also found out that the level of Trust is directly
proportional to the Initiative to influence family members. More the trust
in these students about online transaction system, more they would try to
influence their family members towards this.
This study leaves behind the scope of further research by including more
traits from the culture paradigm in order to study their correlations with
the non-cultural factors. The number of participants could also be
increased in order to facilitate and consolidate the results to a greater
extent. Also, there could be other factors that can be included depending
upon the secondary research done. The questionnaires can also be revised
and further parametric tests could be done to study the violation of results
from this research. Depending upon the degree of violation another
branch of research can be unlocked. And that is, what should be the
approach towards getting proper feedbacks (Parametric or Non-
Parametric). Moreover, some other approach towards cross-checking the
results could be achieved from other theories of Cognitive Psychology.
111
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How Does The Cultural Traits Affect The Indian Subcontinent

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Chapter-1 Introduction

TITLE: AFFECT OF COLLECTIVISM VS. INDIVIDUALISM, TRUST

Name: Amlan Ghosh.

Submission Date: 14.12.2007

Supervisor: Neil O Connon

1. To find out the factors that could be responsible for imposing

Total word count: 20,583 (approx)

AFFECT OF COLLECTIVISM VS. INDIVIDUALISM, TRUST AND

A questionnaire survey on 82 such students reveals that Collectivism

Keywords: Online Buying, Conceptual Model, Non-Parametric Study,

Thank you everyone.

3.1.4 Influence on Family

4. Data Analysis and

Table-3. Internet Users vs. Population in Sri-Lanka……23

Figure-2. PERCENTAGE OF ACTIVE INTERNET

Figure-21. ATTITUDE AND SOCIAL

discuss about the scope of ecommerce in the Indian, Srilankan, or

A random survey on e-commerce with 82 people deciphers the

An interesting question to answer would be “Did the Psychology of the

and Behavioural Intention at the same platform. The main point of

Being defined the requirements and the dimensional boundaries of this

The primary research will undergo a questionnaire where the answers

All the answers would be weighed and evaluated on an ordinal scale

In the early fifties a prevalent computer networking system was based on

Later in 1960 J.C.R Licklider articulated an idea "A network of such

E-mail : Came in 1971, Ray Tomlinson of BBN.

Another major step towards the popularity of E-commerce was the

All these events were proving to be good for encouraging people to

In a press release by United Nations Trade and Development, on 18th

2.1 Development of e-Commerce in Indian Subcontinent:

2.1.1 Development of e-Commerce in India:

The history of internet in India started with an initial approach from a

The main focus of introducing internet in INDIA till 1997 was to

(Software Technology Parks of INDIA) by launching the GATEWAY

In a summary report published in 2006 by IMRB International and IAMAI

FIGURE-1 THE INTERNET USER’S FUNNEL

Urban Population - 243 million

Literate Population - 203 million

English Knowing - 77 million

Ever User – 32 million

Internet in India-2006; Summary Report of I-Cube 2006, p.8

Internet in India-2006; Summary Report of I-Cube 2006, p.9

Internet in India-2006; Summary Report of I-Cube 2006, p.14

FIGURE-4 GROWTH OF ACCESS POINTS OF INTERNET USAGE

Access Points for Internet

Cyber Café Office Home School/College Others

Adopted from Internet in India-2006; Summary Report of I-Cube 2006

Internet Usage Demographically

Adopted from Internet in India-2006; Summary Report of I-Cube 2006

Young Men – Less than 35 years

Table: 1 Internet Usage and Population Statistics, India

YEAR Users Population % Pen. Usage Source

1999 2,800,000 1,094,870,677 0.3 % ITU

2004 39,200,000 1,094,870,677 3.6 % C.I. Almanac

2005 50,600,000 1,112,225,812 4.5 % C.I. Almanac

2006 40,000,000 1,112,225,812 3.6 % IAMAI

2007 42,000,000 1,129,667,528 3.7 % IWS

Internet Usage Stats and Telecommunications Market Report. [Online

In a report published by IAMAI (Internet and Mobile Association of India)

Internet Activities by Indians

Job Search 22%

e-Mail & IM 42% Stock Trading 7%

Internet Usage Stats and Telecommunications Market Report. [Online