Academic journal article Social Behavior and Personality: an international journal

Factors Influencing Cart Abandonment in the Online Shopping Process

Academic journal article Social Behavior and Personality: an international journal

Factors Influencing Cart Abandonment in the Online Shopping Process

Article excerpt

A virtual shopping cart is a necessary tool for online shopping. A common problem encountered by e-commerce businesses is that between 25% and 88% of consumers abandon the products in their shopping cart, resulting in the last-minute loss of a transaction opportunity (Kukar-Kinney & Close, 2010); therefore, understanding how to reduce cart abandonment is a priority for e-commerce businesses. Close and Kukar-Kinney (2010) examined the factors that impact on electronic cart use, and found that taking advantage of price promotions, organization (i.e., using an online cart in place of a wish list), entertainment, and current purchase intention had a significant influence on cart use. The authors built a structural model of cart abandonment, and concluded that entertainment value, use of the cart as a research and organizational tool to sort items of interest as part of a purposeful search, and waiting for a sale directly influenced cart abandonment, and concern about costs indirectly influenced cart abandonment (Kukar-Kinney & Close, 2010). According to Rajamma, Paswan, and Hossain (2009), waiting time, risk, and transaction inconvenience significantly influence cart abandonment. As an extension to these previous studies, in this study we addressed cart abandonment from a new perspective, whereby the factors that influence cart abandonment are proposed to exist at every stage of the online shopping process. To illustrate the process, we constructed a model of cart abandonment, with the aim of determining the direct and indirect impact of each shopping stage on cart abandonment.

Conceptual Framework and Hypotheses

When shopping online, consumers log onto a website, browse through the web pages to choose goods, place items of interest into the virtual cart, compare and research items within the cart, and finally enter into payment, or abandon the cart (see shaded parts in Figure 1). Throughout this online shopping process, consumers are either directly or indirectly influenced by a number of factors (see Figure 1), including perceived transaction inconvenience, perceived cost, perceived risk, and comparisons with goods available on external websites (Rajamma et al., 2009). To focus on cart abandonment behavior, in this paper, we tested the structural frame model depicted as a solid line in Figure 1.

Consumers are likely to abort the online shopping process before performing research on products within the cart if they feel that the loading speed of web pages is too slow, the transaction process is too complicated, or the quality of the goods is questionable (Harrison-Walker, 2002). Therefore, in contrast to Rajamma et al. (2009), who held that transaction inconvenience influences cart abandonment, we believe that perceived transaction inconvenience, such as slow loading speed of web pages and a complex transaction process, will influence whether or not consumers enter the cart use stage. As a result, perceived transaction inconvenience will not have a significant impact on organization and research of products within the cart. Thus, we formed the following hypothesis: Hypothesis 1: There will not be a significant link between perceived transaction inconvenience and organization and research of products within the cart.

Transaction cost has been found to have a significant effect on the online shopping process (Wu, Chen, Chen, & Cheng, 2014), including cart use behavior (Magill, 2005). Moreover, online, compared to offline, consumers are more price sensitive and expect lower overall costs (Xia & Monroe, 2004); thus, the online consumer may carry out more research and comparisons to find a suitable price. If the price of the goods is higher than expected, online consumers are inclined to look for goods with a better price/performance ratio. At this time, their research efforts will increase, and they will perform more organization and research of products within the cart (Kukar-Kinney & Close, 2010). …

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