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1 P M J O U R N A L O F D I G I T A L R ESEARCH & P UBLISHING “informational, interaction, trust, response time, design (visual) appeal, innovativeness, emotional appeal, integrated communication, business processes, and substitutability.” Moreover, culture affects Internet marketing. Online retailing creates real shopping in the virtual world. Two websites, eBay and Taobao, will be introduced as case studies. Case study With the development of electronic commerce in China, Taobao became dominant in Chinese online C2C market, controlled as much as 67 percent of the market share in 2005, compared to eBay’s 29 percent (Zazaian, 2006). According to the 2008 China Online Shopping Report, in 2007, 70.4 percent of online customers choose Taobao, while only 8 percent choose eBay (China IntelliConsulting, 2008). There are several differences between these two online trading companies. Comparing these two sites, we can easily get the reason why Taobao owns larger market share than eBay China in China. 1 Comparison between eBay and Taobao in China Online Market Web Design Barber and Badre (2001) presented that website cultural elements are expected to affect the way a user interacts with the site directly. Gommans, et al. (2001, p. 51) also states that “A website has to be designed for a targeted customer segment...Local adaptation should be based on a complete understanding of a customer group`s culture”. According to Chau, et al. (2002, p. 139), “a global interface may only be achievable G+%"&6+%&$"6%>D35%&8%*$,"&>%C%56*&6+%&5(#6(>3#&"(3"5%*&7D&6+%&63>,%6&3(8$%"5%ma&&l5(#6(>3#& preferences and biases affect the degree of user friendliness of an interface such as background color, graphics, and spatial orientation. Culture differences may moderate the relationship between the purpose of Internet use and consumers` attitudes”. And, l*$,"$453"6& 078%#& 8$DD%>%"5%*& G%>%& D7("8& $"& %35+& 7D& 6+%& #$*6%8& 536%,7>$%*& 3"8& *(,,%*6& distinctive design preferences across cultures.” (Cyr, et al., 2005, p. 14). Therefore, the quality and quantity of information presented in the wed preferences will affect consumer attitudes and behaviours. Chau, et al. (2002, p. 139) presented that it is essential to “understand which audiences we are targeting and what their potential cultural responses may be”. They also presented 6+36&l#753#$K$",&3&,#7)3#&$"6%>D35%m&G7(#8&)%&)%"%45$3#&D7>&6+%&03>H%6$",M& 174
1 P M J O U R N A L O F D I G I T A L R ESEARCH & P UBLISHING For example, western focus on timeconscious life style, as a result, “heavy graphics with long download times are perceived as a nuisance by consumers. Conversely, Asian prefers screens with animated graphics, video, and audio”. Therefore, web interfaces should be designed for different cultural audiences, and there must be some features on the front page that allow the targeted audience to feel at home. Comparing eBay China and TaoBao websites, Taobao’s website is picturerich. Taobao used numerous graphics to attract customers. Their front page has been organised into categories with animated graphics, such as “Men”, “Women”, etc. They designed the website according to customers’ likes and dislikes. Conversely, eBay’s website is textrich. Even though the style makes it look professional, but for a website targeted at young people, friendliness should be considered. Communication With the development of the Internet, electronic communication has increasingly become the central medium (Thompson, 2005, p. 315). Internet provides a new opportunity for sellers and buyers to conduct the communication and creates a worldwide virtual community beyond the traditional way of communication. Various mechanisms have been proposed and implemented in online customertocustomer (C2C) market. Taobao used an online instant messenger called Aliwangwang, which is considered as an effective and satisfying communication system. It provides instant communication between buyers and sellers, and enables buyers to get enough product knowledge in a short time and have chance to negotiate with sellers before making a deal. According to Tongyu Sun (the CEO of TaoBao), “Chinese business men are used to building relations with partners through meeting, chatting, or having dinner before making a deal. The tradition is inherent. ” (Chen, et al., 2007). Conversely, there was no instant messenger for direct communication between two parties in eBay china before 2006 (Chen, et al., 2007). In addition, TaoBao provides online community for users, which people can use it to exchange shopping information and other emotional experiences. Although eBay also +3*&3&8$*5(**$7"&)73>8S&$6&$*&#%**&356$I%&6+3"&B37)37L*M&A'%5$453##9S&6+%>%&3>%&VF&*()R%56& channels in eBay, while Taobao has 76 big channels, which include 1020 small channels in each of that. There are altogether 3,540 postings in “Buyers” channel of eBay, while there are 162,300 postings in “Buyers” channel of Taobao until 7 June 2008 (Taobao and eBay, 2008). Moreover, Taobao has a much stronger community with numerous loyal customers. Users on TaoBao shared their trading experiences, personal feelings, and comments on 175
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a large proportion of Chinese netiz
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issue and not be interfered by any
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approach is to look at it from the
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