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