Different Cultures of Online Shopping Modalities: How Emerging Economic Modalities Shape Contemporary Society

Research Article
Open access

Different Cultures of Online Shopping Modalities: How Emerging Economic Modalities Shape Contemporary Society

Yani Chen 1* , Runqi Zhang 2 , Jinwen Yi 3 , Yuming Lu 4 , Chengyu Shi 5
  • 1 Chengdu Golden Apple Jingcheng NO.1 Secondary School International    
  • 2 Nanjing International School    
  • 3 Basis International School Park Lane Harbor    
  • 4 New York University    
  • 5 Ningbo Foreign Language School    
  • *corresponding author aliciaa_chen@163.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/18/20230052
AEMPS Vol.18
ISSN (Print): 2754-1169
ISSN (Online): 2754-1177
ISBN (Print): 978-1-915371-79-9
ISBN (Online): 978-1-915371-80-5

Abstract

The emergence of economic modalities shapes different cultural societies by increasing platform economy in which consumers form different consumer behaviors between China and the United States. The previous study explained that U.S. consumers are resistant to online shopping due to privacy concerns. Previous research has studied the issue by interviewing U.S. consumers and by giving data for both China and U.S., and there are no possible solutions for this issue. Our study uses qualitative research to find databases between two countries and analyze consumer behavior differences. Our finding indicates that the unpopularity of the U.S. platform economy is because of the lack of a star economy, strong consumer rationality, and low level of vulnerability to the image. As opposed to previous assumptions, our study suggests adding diversified goods to the platform, offering appealing titles, and building convenient online consumption methods in order to make U.S. online shopping popular.

Keywords:

online shopping, economic modality, culture differences

Chen,Y.;Zhang,R.;Yi,J.;Lu,Y.;Shi,C. (2023). Different Cultures of Online Shopping Modalities: How Emerging Economic Modalities Shape Contemporary Society. Advances in Economics, Management and Political Sciences,18,14-26.
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1. Introduction

The live broadcast appeared in China in 2005, but it was mainly used for entertainment at that time. Most of the anchors also live play games or make jokes on videos. Live broadcast sales mainly began to rise around 2016. With the popularity of 4G and WiFi, the transmission speed of the Internet is getting faster and faster. Until now, the total number of users of Chinese live broadcasts reached to 4,640 million in 2021. The live broadcast has begun to shift to the mobile end, and various live broadcast apps have been launched. This method of live broadcasting is very simple and low-cost - as long as the people have a mobile phone. The popular and low-priced mobile phone greatly lowered the threshold of live broadcasting. In 2016, a video of Li Jiaqi (an KOL) became popular in TikTok, bringing the live broadcasting to the stage. The success of Li Jiaqi inspire many anchors who had many fans but did not make much money. Seeing the popularity of live broadcasting, the number of companies start to develop live broadcasting functions in their platforms or applications [1]. From another perspective, since the outbreak of the epidemic, most people had to stay at home. The incapability of going outside pushes people to familiarize themselves and use the Internet to buy their necessities, which promote the rise of live broadcasting. Similarly, schools and companies begin to use live broadcast software like zoom to teach instead of face-to-face. Online live broadcast has reflected social value in the fight against the epidemic. Taobao live broadcast and audio tape goods help farmers in some affected areas to sell agricultural products online. In order to promote e-commerce into rural areas, establish a modern rural market system, and help poverty alleviation and rural revitalization, the Ministry of Finance, the Ministry of Commerce and the Poverty Alleviation Office of the State Council decided to continue to carry out the comprehensive demonstration of e-commerce into rural areas in 2020 [2]. In the U.S. market, live streaming with goods is not as popular as in China. In a survey done by Harris poll in April 2021, 38% of American adults said that watching the anchor's video who was selling goods would cause them to want to buy the product, but only 7% said that they actually bought the product because of anchor's recommendation [3]. Of course, the development of live broadcasting depends on local conditions. For example, in the Middle East, religion has a great influence, so the specifications of live broadcasting will be different. While in East Asia, such as China and South Korea, advocate entertainment culture, so they can use celebrities to drive the development of the live broadcast industry [4].

Compare to Chinese market, the United States live broadcast market size is not remarkable. After the popularity of TikTok in America, live streaming started to enter the view. However, the live streaming market still shows no improvement. The unprofitable American live streaming market is eccentric. The United States has the most mature market and financial system in the world. Moreover, the per capita GDP in the U.S. is much higher than China.

This essay will mainly investigate the deduction on the issue of different online shopping modalities owing to cultural differences between China and the United States, which lead consumers in different region formed various consumer behaviors. This study aims to find the solution to combat the unpopularity of internet buying in the U.S. and to entice American consumers, thus altering consumer behavior. Since there are substantial economic contrasts between the China and the United State’s platforms economy. This paper will examining the respective market development, the psychological preferences of consumers each separately, and offer trustworthy solutions for the U.S. platform market.

2. Literature Review

While live streaming market is profitable in China, it is not so popular in other mature markets like United States. Despite the policy differences, there are many culture and shopping behaviors’ differences.

With the advance of live streaming, KOL (Key Opinion Leader) works extremely well in China. A survey conducted at the end of 2018 found that 49% of consumers in China depend on KOLs’ recommendations for their purchase decisions. The numbers are even higher for Millennials and those in Gen-Z. Actually, 71% of marketers say the quality of customers and traffic from KOL marketing is better than other sources [5]. The influencers interact with their followers by building rapport and making themselves relatable. They have the ability to make things trend, which is an opportunity in which brands should look to invest. The evaluation of KOL is not only limited to the number of fans, but more comprehensive factors also need to be taken into consideration.

The Word of Mouth (WOM) becomes one of the most important factors that customers need to consider when they are making purchasing decisions. In China 20 to 50 percent of all purchasing decisions are influenced by it. In 2018, the KOL market value was about 102 billion yuan, according to Weibo big data [5].

In China, with the assistance of Weizhishu.com, which is based on microblog user behavior data and massive blog data and uses scientific algorithms to calculate a series of indicator products reflecting the development status of different event fields. The higher the Weizhishu that a KOL has means the person is more influential.

In addition, the STEPPS model which contains social currency, triggers, emotions, public, practical value and stories can also help with the evaluation of KOLs. Specifically, for social currency, triggers and emotion, by using social currency KOLs can create higher quality and more innovative content to excite customers, or even become a trendsetter in the live streaming industry. Triggers, including words, images, and so on, remind customers to think about the target product. Possessing great, consistent branding will encourage customers to purchase the product. Through the usage of positive words such as excellent and new, customers will be attracted. Accessing those three factors of KOL can also have a better evaluation of KOL [6].

In China, people prefer word-of-mouth marketing to advertise. First of all, in China, most advertisements will annoy consumers. For example, in video software, if there is no VIP, people need to watch the 60-second advertisement. However, during the 60-second advertisement, consumers will not like to watch the advertisement. They will only think it is a kind of interference. However, when people come into the studio and say they want to buy the product, people will not feel disgusted when the anchor introduces the product. The way the anchor tells the audience that they are listening is similar to word of mouth, which makes Chinese consumers trust KOL very much. On the contrary, in the United States, critical thinking is very important in education. Critical thinking makes people think about what others say in many ways, which makes them less willing to believe what KOL says [7]. Also, American consumers pay more attention to KOL's personalities rather than knowledge (knowledge on makeup, for example). American consumers do not need the KOL to teach them which product is good.

Moreover, the form of advertisement issued by businesses is very important to attract consumers. Among them, hard advertising refers to less talk about feelings, more intuitive to the audience to express their intentions - to sell products; Soft ads, on the other hand, are indirect and subtle. In reality, consumers are more likely to accept the soft ads. In soft advertisement, the KOL usually uses the product for a while, sharing the advantages and disadvantages from the KOL's point of view. Since Chinese consumers prefer word-of-mouth, this type of advertisement is more trusting. Sometimes, the KOL even does not to share and describe the product. As long as the product is in the video, it could be effectively advertised. For example, Liu GengHong, the sports host, started to wear certain brand clothes to broadcast the sports after he became popular. Although he has no advertising words, did not deliberately stop to insert advertising, but he can achieve the way of advertising in a more subtle way. However, it is hard to introduce the soft advertisement method into the United States market. The Advertisement Law in the United States limits the implementation of soft advertisement. According to FTC, "advertising must tell the truth and not mislead consumers". However, the soft advertisement is blamed for the deceptiveness.

Chinese consumers are more price-conscious than American consumers, and many American consumers are more quality-conscious. In China, in the first half of 2022, the per capita disposable income of Chinese residents was 18,463 yuan ($2,738.14), and the per capita consumption expenditure of Chinese residents was 11,756 yuan ($1,743.46). It can be seen that the income of most people in China is not high, and there is not much left after removing the necessary expenses in life. So many people will first look at the price and then consider the quality. However, since the per capita GDP in the United States is much higher than in China, American consumers will pay more attention to the quality, and its quality plays a decisive role to a large extent. Americans are not as conscious of saving money as Chinese, so that they can choose to overdraft. They are willing to pay more for better quality products that last longer.

In 2019, the scale of e-commerce live streaming exceeded 300 billion yuan in China. In 2020, due to the COVID 19, the number of merchants joining online live broadcasts in the first half of the year increased considerably. Statistics from the Ministry of Commerce show that in the first quarter of 2020, there were more than 4 million live broadcasts of e-commerce. However, according to July 5, Financial Times: TikTok has given up on expanding its e-commerce business in Europe and the US, because Consumers in Europe and the United States are not interested in the "live with delivery" model, and business is difficult to take off. And a series of intensifying workplace culture conflicts between Chinese and Western teams [8].

The totally different situation in live streaming between China and America can be explained from the aspect of consumer psychology. Live streaming allows shoppers to view the seller's face and expressions, background (e.g., clothes, display), as well as the products on offer, in a way that cannot be prerecorded or edited prior to being presented in the online store. Unlike advertisements, which feel more artificial, live streaming videos, which show the reality of the seller and what they are offering without fabrication, are perceived as more authentic—the quality that customers are increasingly seeking in a brand [9]. Therefore, due to this authenticity, the brand builds a close relationship which is based on trust with customers.

In addition, due to the herd mentality which is the tendency of the people in a group to think and behave in ways that conform with others in the group rather than as individuals, people in China could perceive that in the live streaming, panic marketing, limited times and limited price can be created deliberately to promote the sale. Therefore, when consumers who actually do not want to purchase the product see the numerous consumptions of others, they will also place an order. On top of that, the authority also plays an indispensable role. Authorities, including celebrity endorsements, blogger recommendations, expert endorsement, and institutional certification would promote the liability. However, among those US consumers who were unlikely to make a purchase via social media, 51% said they don’t trust social media sites for secure purchases, while 46% would rather shop on retailer sites and apps directly [10]. Influencers can be celebrities, athletes, or individuals who have amassed a large number of followers over time. Hiring influencers to promote products has become so common that it has spawned its own industry. The global spend on influencer marketing could be as high as $10 billion by 2020, according to a study by Mediakix. On top of that influencers are supposed to clearly disclose when a social media post or story is a paid ad or promotion, according to the FTC, but they usually aren’t doing this. Mediakix found that 93% of endorsement posts by top social media influencers aren’t properly disclosed by them, which violates FTC guidelines. This is the issue with influencer marketing and the reason it has become so popular. It allows vendors to place an advertisement in front of you that features someone you like in a discreet manner. It's also a simple way for people with a large number of social media followers to make a lot of money. Because of the trust issue, consumers can tell when an influencer's post was paid for, so they will probably treat it as advertisement and will not pay for the bill [11].

Live streaming is quickly growing in acceptance as a cutting-edge sales and marketing strategy in China. But because the will of the people and the economic model are different, Europe and the United States, who invented live streaming, are not financially successful. The Chinese consumer is more concerned in the perception of a product on social media platforms than they are in official TV advertisements or formal advertisements. Chinese consumers have a significant interest in the system-recommended "personal preference" that drives consumption. This type of consumer behavior is more prevalent among young adults. Statistically, although young Free Spenders (people who spend so freely that he or she will go bankrupt if spending habits are not altered) account for 25% of the population, they account for 50% of all expenditures. This is due to the fact that young Free Spenders believe in mass consumer preferences (softness) and good prices, and are not particularly concerned with future savings. Nowadays, Chinese consumers are increasingly relying on platform consumption due to their habits and beliefs. According to the statistics of China consume report 2020, total sales on all platforms of China increased by 31% over 2019, which is 410CNY billion (US 58$ billion). However, U.S. consumers are more concerned with the product's experience, quality, and privacy. According to the Washington Post-Schar School, a poll shows that people of all ages have a consensus on perceiving targeted ads as intrusive and irritating and not building trust in social media or platforms with their information. 56% of Facebook subscribers said it has a negative impact due to the privacy issues that lead users to use the Internet negatively and harden. American consumers don’t have faith in the business or individuals when they faced privacy issues such as providing target advertisements from YouTube. According to the CR survey research Department and Advocacy Division’s report in 2020, there are 79% American consumers believe that platform mergers are unfair because such platforms impede competition and restrict consumer choice, and 81% of American consumers are concerned about the quantity of data that platforms contain and that platform gather it to create more in-depth consumer profiles [12].

3. China Market Development

China's new bandwagon model of e-commerce and live-streaming has grown significantly over the past decade. Practicality and the ability to trust a KOLs have tremendously impacted Chinese customers. Most of China's e-commerce platforms are Taobao/Jingdong and Tik Tok (Chinese version- the new rising social platform). As the earliest platform, Taobao attracted numerous consumers and merchants by using the sales promotion strategy. The yearly "shopping festival" on Taobao has generated enormous sales value for the Chinese market. In 2009, Zhang Yong, president of Taobao Mall, and his staff prepared "Double Eleven," a carnival-themed online shopping extravaganza. To accommodate the demands of shoppers for Chinese New Year merchandise, Taobao established a new consumer node. The following year, Double Eleven made $5.4 billion in revenue.

Nonetheless, as the market for e-commerce platforms expands, live and "self-created" consumer festivals become increasingly visible to consumers. However, the impact of Covid-19 initiated China's e-commerce business growth. As Chinese restrictions compelled residents to segregate themselves at home, online advertising and consumption became the primary source of consumer expenditure. Simultaneously, merchants respond to consumer demand, create new patterns and traffic, and introduce a vast array of national items. According to the social media channel for collecting product information, 58% of Chinese customers are interested in "new" KOL products. In other words, young customers' KOLs are new items based on well-known brands.

In contrast, celebrities do not play a significant part in purchasing decisions. However, older consumers are more likely to trust celebrity endorsements. According to statistics, a quarter of consumers in their forties rely on KOLs for the same items as celebrities. In the past three years, TikTok, an emerging short video app, has created a platform from short films to social media and live sales. Most TikTok users are young women in their 20s and 30s residing in major metropolitan areas interested in beauty, fashion, and lifestyle. They are drawn to the fashion and entertainment content on TikTok. At the same time, beauty products have captured the attention of young Chinese female consumers due to the anchor's new method of bringing in goods, particularly lipsticks. During the 2019 618 Shopping Festival, Taobao Live generated sales above 13 billion. During the Double 11 shopping festival, Li Jiaqi's sales reached 2 billion yuan, while Veya's sales reached 2.7 billion yuan. Veya generated 28,389 KOL, and Li Jiaqi generated 14,763 sales. Also, there are 54% of overall sales were comprised of beauty and skincare/body / essential oil, according to the live statistics. This is followed by other categories (toiletries/personal care), which primarily account for 30% of Vya's live stream. Finally, beauty and color cosmetics represented 16% of total sales.

4. U.S Market Development

"The see-now-want-now mentality displayed by modern consumers is driving the trend of live video shopping that we see sweeping across e-commerce and online shopping platforms [13]. "

The so-called live streaming e-commerce gives almost everyone the opportunity to create their own shopping channel to sell variety of products, including electronic devices, consumer staples, and so on. For consumers, live streaming allows them to view the seller's face and expressions, background (e.g., clothes, display), as well as the products on offer, in a way that cannot be prerecorded or edited prior to being presented in the online store [9].

When it comes to live video shopping, China has been well ahead of the United States. According to the research, a livestream hosted by popular influencer Viya was part of Taobao's Singles Day 2019 sales event that attracted more than 43 million consumers. In 2022, livestream shopping is projected to reach about 423 billion in revenue in China [13]. These numerous evidences indicate that the live streaming is one of the most potential industry and it will become an even more important sales medium. Therefore, many businesses in Western countries are now also trying to get a slice of cake. Instagram revealed today that it will be introducing a new feature to its app to assist in connecting online customers to product drops. Drops, a more recent e-commerce trend, assist retailers in building anticipation for upcoming products in the days and weeks before they go on sale. The products themselves are frequently only offered in small quantities or for a brief period of time, which raises demand.

Facebook is working on a native livestream shopping tool, positioning itself as the new QVC (Quality Value Convenience), a television home shopping channel, which is the name of an American broadcast television network and channel that offers the viewer a televised, in-home shopping experience. Facebook would be considered the largest live streaming website worldwide. From February to March 2020, the number of Facebook Live viewers in the US increased up to 50%. In addition, celebrity influencers like Kevin Hart and Jennifer Lopez were also recruited by Facebook as part of their efforts to promote the advantages of the new Live product.

Walmart collaborates with TikTok to conduct the first pilot test of a new shoppable product experience on TikTok's social video platform. During a Walmart livestream, TikTok users will be able to shop from Walmart’s fashion items without having to leave the TikTok app, in a pilot of TikTok’s new “shoppable product.” The fashion items themselves will be featured in content from 10 TikTok creators, led by host Michael Le, whose TikTok dances have earned him 43+ million fans. Other creators will be more up-and-coming stars, like Devan Anderson, Taylor Hage and Zahra Hashimee [14].

5. Comparisons Between China and United States

Here are a few comparisons between China and the United States that explain why live-streaming is thriving in China but not in the United States (Table 1):

Table 1: China vs. U.S consumer behavior chart.

China

United State

Emotional

Rational

External Gratification

Internal Gratification

Prioritize Others

Prioritize Me

Community “Value” Adding

Personal Utility

High level of vulnerability to image

Low level of vulnerability to image

5.1. Emotional Vs. Rational

In China, a large number of people suffer from facial anxiety, and this anxiety is caused by the Internet. According to the Mob Research Institute report, about 76.40 percent of the people who take the survey said they had some degree of anxiety about their appearance, and 20.30 percent said they had moderate to severe anxiety. Many girls and boys will post their photos on the Internet, and most of them are thin and white beauties. Those people always get a lot of praise. On the other hand, if a slightly overweight woman or man posts a photo, he/she will get a lot of comments about why she is so fat and confident to post the photo. Gradually, people's aesthetics were limited to thin and white. Streamers who were selling products will also promote products by creating facial anxiety. For example, from the perspective of makeup, many anchors will say that a certain product can whiten the skin. In this case, many people with low self-esteem will immediately place an order, because they think the product can make them beautiful. From the perspective of food, many anchors will recommend low-calorie food, saying that it will not make people fat. In the United States, however, face anxiety is not common, and most people are very confident about their bodies and looks.

5.2. External Gratification Vs. Internal Gratification

When consumers decide to buy a product, the product either fit their internal gratification or external gratification. The product could fit the both, but at least one of them should be satisfied. External gratification comes from the added-value of the product. That is, how other people view the consumer when he/she has the new product. For example, both luxury bags and plastic bags could hold things, but people would view the one with luxury bags as "rich, upper-class, and elite". The internal value, in contrast, is whether product benefits the consumers themselves. In the previous example, the internal value of both bags is the same (the luxury bag might even have lower internal value due to the over-priced).

Though Chinese consumers do care about internal value, they pay more attention to external value than American consumers do. Due to the facial anxiety and un-confidence the Chinese people have, it is crucial to use the product's external value to provide the "shelter". Moreover, since a portion of Chinese people (especially middle-aged) like to judge others, the added-value becomes the protection.

In contrast, instead of collectivism, Americans prefer individualism. That is, even though Americans might meet some judgement, but because they believe that it is inappropriate to judge other people, the Americans are not vulnerable under judgement. In this case, since they care less about other people's judgement, when Americans purchase goods, they will pay more attention on internal gratification.

5.3. Prioritize OTHERS Vs. Prioritize ME

Chinese consumers and American consumers, one is more influenced by others, the other likes to have their own independent ideas. Chinese have long been more collectivist, so Chinese consumers are more likely to be influenced by what others say about products. For example, if a product is praised by many people, it will attract more people who have not bought it, and even some consumers who think they do not need the product may be motivated to buy it. But American consumers are more influenced by their thoughts. Americans who are more individualistic may think more rationally about the pros and cons of the product and whether they really need it. So they are the ones with Prioritize ME in the China-US consumer comparison.

5.4. Personal Utility Vs. Community "Value" Adding

The difference in purchasing purpose still exists between American and Chinese consumers, which is related to the different cultures, personal habit and so on.

According to the China shopper Report 2022, Vol. 1, Chinese consumers are becoming more price sensitive especially under the COVID 19 pandemic. Therefore, price could be the only factor that Chinese people will consider when they are purchasing goods. In addition, according to the Harvard Business Review, Chinese consumers are price sensitive but brand conscious. Price is often the determining factor for Chinese consumers when they make purchase decisions, but they also have a fondness of luxury brands. Therefore, the "value" that the products have is all that matters to the typical Chinese consumer. However, American consumers tend to refer the "consumer value" which accentuates how much value individuals have on using or owning items. Namely, US consumers will pay more attention to the benefit of the product over the "value" that the product has. Hence, American consumers typically care about their own personal utility like what are the benefits they can receive from purchasing the product.

5.5. HIGH Level of Vulnerability to Image Vs. LOW Level of Vulnerability to Image

In China, a large number of people suffer from body shame, and the anxiety is caused by the Internet. Many girls and boys will post their pictures on the Internet, most of them are thin and beautiful. Those people always get a lot of praise. On the other hand, if a slightly overweight woman or man posts a photo, he/she will get a lot of comments about why she is so fat and so confident to post the photo. Gradually, people's aesthetics were limited to thinness. Brandy Melville, an Italian brand, has become a standard to judge a person's body shape in China. Many women will use the weight chart issued by Brandy Melville to measure whether their body shape is good or not [15]. Streamers who sell products also promote their products by creating body anxiety. From the perspective of buying food, many anchors will recommend low-calorie food, saying that it will not make people fat. This also happens to satisfy the demand of consumers who do not want to become fat. However, body anxiety is uncommon in the United States, where most people are very confident about their bodies and how they look. On the street, girls regardless of height or thickness can confidently wear skirts and clothes they like, and will not pursue the so-called "beauty" in the eyes of others.

5.6. Idol Economic

Now many Chinese stars can use their fame to sell goods, and many fans usually respond positively. Some Chinese stars have strong popularity, and some fans are willing to spend a lot of money to make their idols have stronger popularity, better performance and express their support for them. As a result, many stars began to live streaming to sell goods, and some stars with many fans can even achieve sales of hundreds of millions of RMB at a time. But in the United States, people pay more attention to the professional ability of stars. For example, it is important for actors to have good acting skills, and it is vital for actors to have good singing skills. People like a star because of their work, but they are less willing to pay a lot of money for the star.

5.7. KOL Economic

In recent years, the development of e-commerce live streaming in China is very rapid, and some famous KOL even exceed the ability of the stars to sell goods. In the early promotion activity of 2021’s Double Eleven festival, the famous KOL Li Jiaqi's sales exceeded 10 billion yuan. Another famous KOL Weiya sold about 8.533 billion yuan [16]. In addition, on other platforms, such as Bilibili, some KOL will create multiple fan groups, treat fans as their friends, and draw into the relationship with fans to achieve the purpose of increasing fans and increasing sales. Moreover, Chinese consumers pay more attention to the professionalism of KOL, and they hope that KOL can introduce products from a professional perspective. However, in the United States, people seem to pay more attention to sharing their daily lives with KOL and regard KOL media as a kind of entertainment. This discrepancy has hindered KOL's selling in the United States.

5.8. Facial Anxiety

The reason why cosmetics and skin care products can take up a large part of China's live streaming can not be separated from the Chinese people's facial anxiety. The source of Chinese people's facial anxiety can be divided into several parts, such as the traditional oriental aesthetic, the influence of western culture, the improvement of beauty standards, various medical beauty applications, the Internet celebrity economy and the influence of the living environment. About 76.40% of the people surveyed said they had some degree of anxiety about their appearance, and 20.30% said they had moderate to severe anxiety, according to the Mob Research Institute report [17]. It can be seen from this that there is a reason why beauty products sell more in live broadcasts. Various anchors can also increase the purchasing power of viewers, especially female viewers, by showing comparison pictures and explaining the effects and benefits, or even increase the anxiety of appearance of viewers. But in the United States, people's anxiety about appearance is far less serious than in China, and people's aesthetic standards are free and diverse. In China, many girls want themselves to be white, young, and slim, but in the United States, people will feel thin has a sense of skinny beauty, slightly fat has a plump beauty, overweight also have the beauty of power [18]. People feel that there is no ugly person, only unappreciated beauty. This is also one of the reasons why the effect of foreign live broadcasts is not so good.

5.9. More Convenient Operation

When watching a live streaming on the Chinese version of TikTok, a link to a particular product pops up in the bottom corner of the screen as the anchor introduces it. If the users want to buy, they can simply click on the link to pay. Whether it's WeChat Pay, Alipay or using a bank card, consumers only need to fill in a password or even press their fingerprint. Alipay even has non-secret payment service for some small bills, which only takes a few seconds. The design of this link at the bottom can improve the convenience of shopping, and such a quick operation can also allow consumers to make orders while they still want to buy. But the international version of TikTok is trickier to pay for, sometimes requiring the input of a bank card number. In the process of input, there is a great probability that the desire of consumers to buy will decline.

5.10. Chinese People Prefer Domestic Products More

Many Chinese consumers have gone from believing that imported goods are better a few years ago to supporting domestic products in recent years. This is mainly because people want to help their country's businesses and economy, following the announcement by foreign brands to boycott cotton from Xinjiang, and the rising contribution of local brands to society. The 2022 Report on Domestic Consumption Trends of Young People shows that the proportion of Chinese consumers born after 1995 who choose to buy domestic goods increased by 11% year on year, and the overall ratio of Chinese consumers buying domestic goods to imported goods was 1.7, compared with 1.3 in the same period of 2021 [19]. But while 69% of people think it's at least somewhat important for an item to be made in the United States, 37% say they wouldn't pay a penny more for it. 26% were only willing to pay 5% more, while 21% capped it at a 10% premium [20]. As a result, American consumers don't spend more than they need to buy things made in their own country.

5.11. Possible Solution for the United States

In order to know whether the United States is a possible place for online shopping and live streaming sale, we first have to check the data on the percentage of Americans who enjoy TV shopping. The TV shopping has at least 15 years history in China. Back to 2008, when Internet was not yet popular, the twenty-minutes long TV shopping was already all over the TV channels in China. Since people were used to watch TV shopping, it is easy for consumers now to accept live streaming shopping. The models of TV shopping and live streaming shopping are basically the same, the only difference could be that within live streaming shopping, KOLs can bring active responses to the consumers. Therefore, we could say that there is positive relationship between TV shopping and live streaming shopping. To know the acceptance of TV shopping for American consumers is important. If over fifty percent of Americans like TV shopping, then we could say that live streaming shopping is at least feasible in the future.

Except for consumer behaviors, having a solid platform is also an important factor. In order to reach live streaming shopping, it is important to have a platform that can both be watching video/live content and buy goods. TikTok in China did this. As we mentioned before, when a possible consumer is scowling the TikTok video, if an interesting content (with products) catches the consumer's attention, by simply clicking the link at the bottom of the content, the consumer could buy it. In the United States, adding link at the bottom of the content could also be a perfect solution. The consumers should build the online shopping behaviors first, then they would like to spend time on watching live streaming shopping.

For the target consumers, the aim is to target consumers into two categories: the young and the old people. For the young generation, it is easy to comprehend, since they spend the most of the time on social media and could access to the novel goods at once. The part that the young generation mostly cares about is fashion. Nevertheless, only fashion itself could not support the whole online shopping and live streaming shopping. The reason why Taobao could be so popular in China is not only about the fashion brand, but the daily accessories. Before Taobao was ever officially named, it was a platform of small daily accessories platform. People could buy the accessories like wrenches (usually uncommon in department store) with low price online. "Inclusive" is an important property. While 20 years old to 30 years old are busy about their business, the people over 55 years old might have more time that could be spend online. The novel product like "clean your dishes within 5 seconds" could actually incur the middle ages and old people's curiosity and buy the products.

6. Conclusion

This paper examines the disparities in consumer behavior between the United States and China due to cultural differences. Looming up the issue of rapid development of the platform economy in China, which is not cherished in the U.S. market. Live streaming, one of the most alluring marketing strategies for consumer attention on platform sites, has contributed significantly to the KOLs of China's platform economy. As a country with the same volume of social media as China, however, the United States economy is not driven by online shopping such as live streaming. Although the strategy of live streaming could create vast value for the platform economy, our study discloses that social norms of "privacy," "rationale," and "vulnerability of putting attention on domestic goods" are having a significant impact on the U.S. Furthermore, as opposed to the systematic training of live bloggers and Li Jiaqi, VIA's "monopolistic" KOLs percentage in China, the U.S social media is more orient to entertainment, knowledge dissemination. In addition, rather than Chinese consumers are placing greater emphasis on the price of a product, consumers in the United States intend that privacy concerns are the primary reason for their harmful internet consumption. Consequently, cultural differences result in divergent beliefs which influenced consumer from each regions at last 5 years; thus, there is no remedy to resolve cultural differences in short-period.

Our research also explores the insufficient maturity in convenience for consumers on platforms in the United States, which links to the vulnerability of platform economy development. Our finding on the distinction between Tik Tok China and the United States is that the Chinese version of Tik Tok will feature advertising or live streaming will immediate pop-up information and links to that products, such a tactic that can swiftly capture consumers' security attention. On the contrary, there are no social media capabilities in the U.S. that enable users to purchase an advertised product instantaneously. After watching the advertisement, U.S. consumers must go to Amazon or a retail store to purchase the advertised product, which lowers their propensity to consume. Therefore, our study suggests that in order to build American consumer behaviors, adding a link for the product after the advertisement to preserve consumer's attention is the best way to attract consumer's interest in the product. Thus, acclimating American customers to the consumer buying model right after advertising could help U.S. platform economy growth.

Additionally, compared to Chinese e-commerce (Taobao), we found that the United States market still lacks product diversification. When consumers discover that they can search for anything they want to purchase on the Internet, consumers rely on the platform and develop purchasing habits. To appeal to users of all ages, Chinese merchants add a variety of titles to various products. On the platform, both young and senior users can acquire the desired things. Once consumers develop a relationship of trust with the platform, the platform captures this message and recommends more related products. However, the product selection on U.S. shopping platforms is limited. Therefore U.S. consumers do not experience the ease of online buying. Thus, shoppers of all ages in the United States chose to remain in retail stores. Our study suggests adding enticing titles to the e-commerce platform to capture consumers' interest and, after establishing consumers' preferences, attract more merchants, expanding the platform economy.

Our research has several limitations. First, the information we discovered for social or shopping networks in China (Tik Tok, Taobao) is incorrect. We had lack of access to Chinese official statistics and annual or quarterly data since the Chinese government restricted information. We could only browse the data or overall percentages on the web that collected by third party websites. Thus, data collection is challenging since the lack of Absolute quantification and Trend history. Additionally, it is impossible to tell whether the data presented in the article are accurate because they are not official data. As a result, we looked through many prior studies for our study's database to remedy the lack of valid data collection. Secondly, our research report lacks visual representations to support its theories. The data presented on Chinese and American KOLs is portrayed and analyzed through the use of literature. Consequently, the lake adequate charts presented in this paper do not provide a clear comparison.

Future studies should consider the potential limitation of data collecting and aim to investigate the association on to global level. Since it is challenging for scholars to locate legitimate China KOLs in databases, future researchers could contact local government departments or negotiate with such enterprises (TikTok, Taobao) to collect official data. Acquiring official data will make comparing Chinese and American KOLs more accurate, compensating for the inaccuracies of prior studies. This is very much the critical component in the future to find a valid database for each social media database. In addition, future research could fruitfully explore this issue globally, including Eastern-Asia and Europe regions. Due to the continuous development of technology, Europe and the United States lack online shopping, which will impact the future development of the platform economy. At this point, a question derived out that is: Thanks to the continuous development of technology, whether Europe and the United States' lack of online shopping will impact the platform economy's future development?


References

[1]. The History of Chinese Live Broadcast. _Teng Xun News. (2020, June 12). Retrieved August 16, 2022, from https://new.qq.com/rain/a/20200612A0TL0S00

[2]. Yuexin Zhang. (n.d.). Three Departments: Support the Countryside Live Broadcast. Retrieved August 16, 2022, from https://m.gmw.cn/baijia/2020-06/01/33878991.html (n,d) https://www.dictionary.com/e/acronyms/qvc/

[3]. Current American Online Shopping Development. Kua Jin Eyes. (n.d.). Retrieved August 16, 2022, from https://www.kuajingyan.com/article/18813

[4]. Analysis of Off-Sea Live Broadcast Development. Research Paper - Foresight Industrial Research Institute. (2018, December 16). Retrieved August 26, 2022, from https://bg.qianzhan.com/report/detail/459/181214-4e1d908c.html

[5]. Victoria Angelova. (2020). KOL marketing in China- What is it and why should you know about it. https://brand.house/2020/03/24/kol-marketing-in-china-what-is-it-and-why-should-you-know-about-it/#:~:text=KOL%20stands%20for%20Key%20Opinion,and%20relate%20to%20their%20audience.

[6]. Aisley Komatsu. (2019). How to create viral content: The 6 "STEPPS" to success. https://www.pressboardmedia.com/magazine/viral-content-stepps#:~:text=Berger%20reveals%20that%20the%20success,your%20next%20sponsored%20content%20campaign.

[7]. Admin, E. (2022, June 22). 10 ways critical thinking plays an important role in education. Retrieved August 13, 2022, from https://www.edsys.in/10-ways-critical-thinking-plays-an-important-role-in-education/

[8]. Lynn Yang. (2022, July 11). Tiktok's live-streaming model has failed to catch on in Europe and the United States. https://baijiahao.baidu.com/s?id=1738048085802734973&wfr=spider&for=pc

[9]. Gilmore, J. H., & Pine, B. J. (2007). Online behavioral intentions: An empirical investigation of antecedents and moderators. European Journal of Marketing, 41(5/6), 512-536. https://techcrunch.com/2021/05/26/instagram-launches-a-new-section-for-shopping-product-drops/

[10]. FIS. (2020) 2020 US consumer behavior report. https://www.fisglobal.com/-/media/fisglobal/Portals/FI-Partner-Resources/files/2020-US-Consumer-Behavior-Report.pdf

[11]. Ramin Edmond. (n. d). Why Influencer Marketing is Tough To Trust. https://blog.gaggleamp.com/why-influencer-marketing-is-tough-to-trust. Retrieved August 13, 2022, from http://www.gov.cn/shuju/2022-07/15/content_5701138.htm 2 Personal income and consumption expenditure in the first half of 2009 (2022-06-16) Retrieved August 13, 2022, from https://zhuanlan.zhihu.com/p/529760478

[12]. CR, C. reports. (2022, September 24). Platform perceptions: consumer attitudes on competition and fairness in Online Platforms. Digital lab. Retrieved August 10, 2022, from https://advocacy.consumerreports.org/wp-content/uploads/2020/09/FINAL-CR-survey-report.platform-perceptions-consumer-attitudes-.september-2020.pdf

[13]. Alex Macura. (May 9, 2022). The Rise Of Live Video Shopping And How E-Commerce Businesses Can Get Started. https://www.forbes.com/sites/forbesbusinesscouncil/2022/05/09/the-rise-of-live-video-shopping-and-how-e-commerce-businesses-can-get-started/?sh=6686d48855

[14]. Sarah Perez. (December 17, 2020). Walmart to pilot test livestreamed video shopping on TikTok. https://techcrunch.com/2020/12/17/walmart-to-pilot-test-live-streamed-video-shopping-on-tiktok/

[15]. Chen Xin, Xiaoya Chen. (2022, May 23). Facial Anxiety: The beauty that is constrainsed_Peng Pai News-the paper. -The Paper. Retrieved August 26, 2022, from https://www.thepaper.cn/newsDetail_forward_18223399

[16]. Kuai Technology. (October 22, 2021). Li Jia Qi Weiya sales: the first day of Double 11 sold 20 billion, nearly 500 million people squat. Retrieved August19, 2022, fromhttps://baijiahao.baidu.com/s?id=1714270909657186781&wfr=spider&for=pc

[17]. Economic Observer. (September 06, 2021). 'Appearance Anxiety' in China: From 'Yang Yuhuan was plump while Zhao Feiyan was skinny' to the business of 'Appearance Premium'. Retrieved August19,2022, from https://baijiahao.baidu.com/s?id=1710130327553830231&wfr=spider&for=pc

[18]. Jiu Cai Cheng Jing.(January 29, 2022). After six months abroad, my body and appearance anxiety almost disappeared. Retrieved August 19, 2022, fromhttps://www.douban.com/group/topic/258920514/?_i=0921603x5h9zmn

[19]. Sina Finance. (May 10, 2022). Young people's domestic consumption trend report: The proportion of domestic goods made by the post-1995 generation increased by 11%. Retrieved August19, 2022, fromhttps://baijiahao.baidu.com/s?id=1732423987291680419&wfr=spider&for=pc

[20]. Hai Wai Ji Shi Tong. (March 30, 2021). Americans want the government to buy American-made goods, but they are unwilling to pay more for themselves. Retrieved August19,2022, from https://baijiahao.baidu.com/s?id=1695662176965968000&wfr=spider&for=pc


Cite this article

Chen,Y.;Zhang,R.;Yi,J.;Lu,Y.;Shi,C. (2023). Different Cultures of Online Shopping Modalities: How Emerging Economic Modalities Shape Contemporary Society. Advances in Economics, Management and Political Sciences,18,14-26.

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Conference date: 28 April 2023
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Volume number: Vol.18
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References

[1]. The History of Chinese Live Broadcast. _Teng Xun News. (2020, June 12). Retrieved August 16, 2022, from https://new.qq.com/rain/a/20200612A0TL0S00

[2]. Yuexin Zhang. (n.d.). Three Departments: Support the Countryside Live Broadcast. Retrieved August 16, 2022, from https://m.gmw.cn/baijia/2020-06/01/33878991.html (n,d) https://www.dictionary.com/e/acronyms/qvc/

[3]. Current American Online Shopping Development. Kua Jin Eyes. (n.d.). Retrieved August 16, 2022, from https://www.kuajingyan.com/article/18813

[4]. Analysis of Off-Sea Live Broadcast Development. Research Paper - Foresight Industrial Research Institute. (2018, December 16). Retrieved August 26, 2022, from https://bg.qianzhan.com/report/detail/459/181214-4e1d908c.html

[5]. Victoria Angelova. (2020). KOL marketing in China- What is it and why should you know about it. https://brand.house/2020/03/24/kol-marketing-in-china-what-is-it-and-why-should-you-know-about-it/#:~:text=KOL%20stands%20for%20Key%20Opinion,and%20relate%20to%20their%20audience.

[6]. Aisley Komatsu. (2019). How to create viral content: The 6 "STEPPS" to success. https://www.pressboardmedia.com/magazine/viral-content-stepps#:~:text=Berger%20reveals%20that%20the%20success,your%20next%20sponsored%20content%20campaign.

[7]. Admin, E. (2022, June 22). 10 ways critical thinking plays an important role in education. Retrieved August 13, 2022, from https://www.edsys.in/10-ways-critical-thinking-plays-an-important-role-in-education/

[8]. Lynn Yang. (2022, July 11). Tiktok's live-streaming model has failed to catch on in Europe and the United States. https://baijiahao.baidu.com/s?id=1738048085802734973&wfr=spider&for=pc

[9]. Gilmore, J. H., & Pine, B. J. (2007). Online behavioral intentions: An empirical investigation of antecedents and moderators. European Journal of Marketing, 41(5/6), 512-536. https://techcrunch.com/2021/05/26/instagram-launches-a-new-section-for-shopping-product-drops/

[10]. FIS. (2020) 2020 US consumer behavior report. https://www.fisglobal.com/-/media/fisglobal/Portals/FI-Partner-Resources/files/2020-US-Consumer-Behavior-Report.pdf

[11]. Ramin Edmond. (n. d). Why Influencer Marketing is Tough To Trust. https://blog.gaggleamp.com/why-influencer-marketing-is-tough-to-trust. Retrieved August 13, 2022, from http://www.gov.cn/shuju/2022-07/15/content_5701138.htm 2 Personal income and consumption expenditure in the first half of 2009 (2022-06-16) Retrieved August 13, 2022, from https://zhuanlan.zhihu.com/p/529760478

[12]. CR, C. reports. (2022, September 24). Platform perceptions: consumer attitudes on competition and fairness in Online Platforms. Digital lab. Retrieved August 10, 2022, from https://advocacy.consumerreports.org/wp-content/uploads/2020/09/FINAL-CR-survey-report.platform-perceptions-consumer-attitudes-.september-2020.pdf

[13]. Alex Macura. (May 9, 2022). The Rise Of Live Video Shopping And How E-Commerce Businesses Can Get Started. https://www.forbes.com/sites/forbesbusinesscouncil/2022/05/09/the-rise-of-live-video-shopping-and-how-e-commerce-businesses-can-get-started/?sh=6686d48855

[14]. Sarah Perez. (December 17, 2020). Walmart to pilot test livestreamed video shopping on TikTok. https://techcrunch.com/2020/12/17/walmart-to-pilot-test-live-streamed-video-shopping-on-tiktok/

[15]. Chen Xin, Xiaoya Chen. (2022, May 23). Facial Anxiety: The beauty that is constrainsed_Peng Pai News-the paper. -The Paper. Retrieved August 26, 2022, from https://www.thepaper.cn/newsDetail_forward_18223399

[16]. Kuai Technology. (October 22, 2021). Li Jia Qi Weiya sales: the first day of Double 11 sold 20 billion, nearly 500 million people squat. Retrieved August19, 2022, fromhttps://baijiahao.baidu.com/s?id=1714270909657186781&wfr=spider&for=pc

[17]. Economic Observer. (September 06, 2021). 'Appearance Anxiety' in China: From 'Yang Yuhuan was plump while Zhao Feiyan was skinny' to the business of 'Appearance Premium'. Retrieved August19,2022, from https://baijiahao.baidu.com/s?id=1710130327553830231&wfr=spider&for=pc

[18]. Jiu Cai Cheng Jing.(January 29, 2022). After six months abroad, my body and appearance anxiety almost disappeared. Retrieved August 19, 2022, fromhttps://www.douban.com/group/topic/258920514/?_i=0921603x5h9zmn

[19]. Sina Finance. (May 10, 2022). Young people's domestic consumption trend report: The proportion of domestic goods made by the post-1995 generation increased by 11%. Retrieved August19, 2022, fromhttps://baijiahao.baidu.com/s?id=1732423987291680419&wfr=spider&for=pc

[20]. Hai Wai Ji Shi Tong. (March 30, 2021). Americans want the government to buy American-made goods, but they are unwilling to pay more for themselves. Retrieved August19,2022, from https://baijiahao.baidu.com/s?id=1695662176965968000&wfr=spider&for=pc