Online shopping transforms how we engage with and acquire goods from international markets. Despite the sector’s expansion, many consumers still resist buying products from overseas businesses due to issues related to trust, cultural discrepancies, and unfamiliarity with the products offered. A recent study spearheaded by Assistant Professor Ha Kyung Lee from Chungnam National University delves into how international corporations can address these barriers by streamlining online shopping and emphasising their commitment to corporate social responsibility (CSR). The findings of this research were made accessible online on August 28 2024, and subsequently published in the November 1, 2024, issue of the Journal of Retailing and Consumer Services, Volume 81.

In this research, the team examined the shopping habits of 1,033 online consumers from South Korea and Japan. It was discovered that companies’ societal contributions, such as support for environmental or social projects, notably enhance the positive impact of ease of online shopping on the frequency of purchases. Professor Lee noted, “When online shopping platforms are user-friendly, consumers are more inclined to buy internationally. Interestingly, CSR initiatives considerably amplify this relationship between the ease of making online purchases and the frequency of such transactions.”

One intriguing aspect of the study was the observed variance in consumer reactions between South Korea and Japan. The Japanese, who typically engage less frequently in online shopping than South Koreans, responded more robustly to CSR initiatives. Professor Lee observed, “For Japanese consumers, CSR signals likely bridge their positive views on online shopping with their reluctance to participate, thereby intensifying the influence of social contributions on purchasing behaviours more in Japan than in South Korea.” This indicates that while CSR can facilitate trust-building and mitigate consumer hesitancy, the effectiveness of these strategies may be shaped by cultural inclinations.

Companies can leverage these insights by enhancing user-friendliness and transparency on their platforms while integrating CSR communications. This tactic is especially vital in markets where trust in foreign brands is yet to be firmly established. For firms venturing into new territories, CSR can be a tactical means to bolster consumer trust and navigate cultural or digital hurdles.

Looking forward, the implications of these findings could be profound and enduring. CSR might emerge as a pivotal element in customising approaches to countries with lesser penetration of online shopping. Professor Lee surmised, “In the future, CSR might evolve into a fundamental aspect of global e-commerce, playing a crucial role in bridging the digital gap and extending the reach of online shopping to a broader audience.”

More information: Changju Kim et al, How do online sales channels affect global product purchases? The role of CSR and cross-country differences, Journal of Retailing and Consumer Services. DOI: 10.1016/j.jretconser.2024.104049

Journal information: Journal of Retailing and Consumer Services by Chungnam National University Evaluation Team