Does culture matter in online retail? : A quantitative study based on the online shopping behaviour of generation Y in relation to the cultural influences of Germans and Swedes

Abstract: Abstract Background: Due to technological developments (e.g. internet) and globalization, business management and the sales environment faced several changes in the last decades. Together with the convenience of the e-commerce and the free trade policy in the EU, businesses are evoked to enter foreign (online) markets (within the EU). While entering foreign markets the psychic distance between cultures is a factor which should be considered. One of the factors which causes psychic distance is the cultural values of a nation. Within this research the cultural values are described by the cultural dimension theory of Hofstede.   Germany and Sweden have a leading usage and adaptation with online shopping. Within the e-commerce, the most valuable target group is the higher educated consumers of Generation Y. Since the cultural values in Germany and Sweden differ from one another, it suggests differences in there online-shopping cultures as well. To create the best online shopping experiences, cultural values should be considered within (concentrated) marketing approaches.   Objective: This research is conducted to examine the online shopping behaviour of generation Y in relation to the cultural values of Germans and Swedes. The results of this research display a theoretical understanding of the online shopping behaviour forthcoming by the cultural influences. This study can benefit online retailers to develop or optimize strategic marketing plans and/or strategic entry plans in the e-commerce for both the German market and the Swedish market.   Method: To answer the objective of this study, hypotheses are designed by the theoretical background. Followed by a survey-driven quantitative data research. The target group of the research were higher educated Germans and Swedes within Generation Y. Since the literature leaves several gaps, the conclusions are descriptive of nature.        Conclusion: The relationships drawn by literature between the online shopping behaviour and the cultural values of Germans and Swedes show consistencies with this research. Germans and Swedes show a similar technological acceptance, which is related to the high level of individualism. Further, differences between Germans and Swedes are assumed within the uncertainty avoidance (brand loyalty versus information search) and masculinity (goal-oriented shopping versus hedonistic shopping).                    Although the differences found between the two cultures are minor, a concentrated marketing strategy can be suggested to create the best suitable online consumer experience.