Factors That Influence Online Shopping Cart Abandonment Behavior
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Transcript of Factors That Influence Online Shopping Cart Abandonment Behavior
Factors That Influence Online Shopping Cart Abandonment
Behavior
Alexandra GroezingerSamantha HofferCathy McQueenBrian Sweeney
Introduction
Online shopping benefits
E-commerce sales in 2015 (DeNale and Weidenhamer 2016)
$342 billion
+ 14.6% from 2014
Customer retention
Purchase completion
ObjectiveDetermine which factors most
influence a consumer to abandon their online shopping cart
Literature Review
Shopping Cart Abandonment
When an online shopper leaves an item or items in their virtual cart for an unspecified amount of time, and the shopper doesn’t return to the website to complete the purchase (Close and Kukar-Kinney 2010)
Virtual shopping cart uses
Purchase
Wish List (Kaufman-Scarborough and Lindquist 2002)
Deal Searching
Wait for Promotion (Negra and Mzoughi 2012)
Five Factors
Distrust in Website Security (Close and Kukar-Kinney 2009)
Hidden Fees/Shipping Charges (Close and Kukar-Kinney 2009)
Website System Quality (Xu and Huang 2015)
Waiting for a Sale/Coupon (Close and Kukar-Kinney 2009)
E-mail Fatigue (Micheaux 2011)
Website Security
Trust level
Sensitivity of information
Security breaches
Fear of personal information being stolen or misused
Hidden Fees / Shipping Charges
Checkout
Final stage of transaction
Unexpected charges
Shipping and handling
Taxes
Surcharges
Website System Quality
Success due to overall function (Hong et al. 2002)
Satisfy customer expectations
Two Components
Website Design
Website Interactivity
Website Design
User-friendly (Hsiu-Fen 2007)
Convenience
Ease of navigation (Ranganathan and Ganapathy 2002)
Comfort
Desire to purchase
Website InteractivityDegree to which the website provides an interactive and responsive
environment (Hsiu-Fen 2007)
Open communication
Contact information
FAQ
Responsiveness
Links
Waiting for a Sale / Coupon
Availability of purchase incentives (Oliver and Shor 2003)
Anticipate promotional tools (Close and Kukar-Kinney 2010)
Coupons
Codes
Free Shipping
Unspecified time period
E-mail Fatigue
Top communication channel (Cases, Fournier, Dubois, and Tanner 2010)
Cost-effective
Time-saving
Abundance of unwanted e-mails (Micheaux 2011)
Delete
Spam
Development of Hypotheses
Distrust in Web Security
Perceived lack of privacy (Kukar-Kinney and Close 2010)
Security of personal/financial information
Risk of privacy breach (Cho, Kang, and Cheon 2006)
Purchasing hesitation
H1: The distrust of an e-retailer’s website security is positively related
to shopping cart abandonment.
Hidden Fees / Shipping Charges
Transaction too costly
Feelings of deception
Discovery of unexpected fees (Close and Kukar-Kinney 2010)
H2: Additional charges discovered at the final stage of the checkout
process (shipping charges, sales tax) are positively related to shopping
cart abandonment.
Website Design
Online Shopping is time saving (Ranganathan & Ganapathy 2010)
User-friendly, no delays
Trouble with steps of purchasing process
H3a: Website design of an online retail website is negatively
related to shopping cart abandonment.
Website Interactivity
Consumer shopping experience
Inability to easily retrieve information
Ability to interact (Hsiu-Fen 2007)
Increases customer satisfaction levels
H3b: The interactivity of an online retailer website is negatively
related to shopping cart abandonment.
Waiting for Sale / Coupon
Incentive to complete sale
Within initial browsing session
Promotional tools (Hu and Yuang 2015)
Insignificant
Not available
H4: The desire to postpone a purchase from an online retailer, contingent upon a sale or coupon is positively related to shopping cart abandonment
E-mail Frequency Fatigue
Too many unsolicited emails
Over-emailing = pressure on consumer (Michaeux 2010)
Concern for privacy, invasion of personal space
H5: The frequency of email contact from an online retailer is positively related to shopping cart abandonment.
Data CollectionSurvey was conducted on SurveyMonkey.com
Consisted of 28 Questions
Likert-Type Scales (1-7)
Construct questions were asked in continuous groups
Convenience Sample of 130 Family, Friends, and Acquaintances
4 surveys were incomplete so they were pulled from analysis
n = 126
Statistics of our Sample
100% Shop Online
MeasuresKukar-Kinney and Close (2010)
Shopping Cart Abandonment - Dependent Variable
Four Items
𝛂 = .90
Hidden Fees/Shipping Charges
Three Items
𝛂 = .75
Waiting for a Sale/Coupon
Three Items
Xu and Huang (2015)
Distrust in Website Security
Three Items
𝛂 = .95
Micheaux (2011)
Email Fatigue
Three Items
𝛂 = .91
Measures (continued)
Hsiu-Fen (2007)
Website System Quality
Design
Five Items
𝛂 = .84
Interactivity
Three Items
Showed Poor Reliability
Appendix Table 1A
Results
Multiple regression analyses
3 of 6 hypotheses supported
Hidden Fees/Shipping Charges
Accept H2 (β = 0.34; t = 2.55; p < .01)
Website Interactivity
Accept H3b (β = -0.53; t = -1.99; p < .05)
Waiting for Sale/Coupon
Table 1
Table 2
Discussion
Previous research verified
Security (insignificant)
Sale/Coupon (significant)
Interactivity
Negative relationship
Two-item scale