Uncertainty avoidance deals with the level of discomfort
regarding future uncertainties (Nakata and Sivakumar, 2001).
Although not exactly equivalent, it is closely related to risk
aversion. In high uncertainty avoidance cultures, there is a
tendency to “prefer stable situations and avoid risk” (Usunier,
2000). Thus, to the extent that uncertainty avoidance is
related to risk aversion, such cultures would prefer
promotions that offer more tangible and immediate rewards
(e.g. price discounts). This is expected since such rewards are
certain, unambiguous and involve little risk. On the other
hand, cultures with low uncertainty avoidance are more risk
tolerant and see opportunities within future uncertainties
(Nakata and Sivakumar, 2001). In fact, they may even be considered as risk seeking, given that cultures with low
uncertainty avoidance have been shown to exhibit higher
levels of innovativeness (Steenkamp et al., 1999). Thus,
consumers in such a culture are likely to be more accepting of
promotions that offer relatively less tangible and less certain
rewards (e.g. sweepstakes and loyalty programmes).
H2A. Monetary promotions are more effective for high
uncertainty avoidance cultures relative to low
uncertainty avoidance cultures.
H2B. Non-monetary promotions are more effective for low
uncertainty avoidance cultures relative to high
uncertainty avoidance cultures.