The Determinant Factors of Shopping Cart Abandonment Among E-commerce Customers in Indonesia
DOI:
https://doi.org/10.21512/commit.v18i1.9308Keywords:
Shopping Cart Abandonment, E-commerce Customers, IndonesiaAbstract
Predicting the non-purchase behavior of potential customers, such as the abandonment of online shopping carts, is a pivotal factor in determining the success of companies. Despite several conducted studies, further investigation is still required to gain a profound understanding of the underlying causes of these phenomena. The research aims to analyze the motivating factors behind shopping cart abandonment among ecommerce customers in Indonesia using a quantitative method. Furthermore, the population size is undefined, and the sample consists of 200 respondents selected through purposive sampling. The sample size is determined by five times the indicator number. The data analysis is conducted using Structural Equation Modeling (SEM) through SmartPLS 4.0.8.5, and the Coefficient of determination (R2) value for shopping cart abandonment is found to be 37.5%. The results show that complicated checkout, information overload, complicated policies, and limited shipping options positively impact shopping cart abandonment. Complicated checkout emerges as the most significant variable. Meanwhile, perceived cost and emotional ambivalence have no impact. The research also provides theoretical contributions and suggests future research for e-commerce companies and merchants. The theoretical contribution is how user emotions, user experience, merchant policies, and e-commerce regulation affect shopping cart abandonment. From the practical implications, e-commerce companies should focus on the user experience during checkout to reduce shopping cart abandonment.
Plum Analytics
References
D. Coppola, “Number of digital buyers worldwide from 2014 to 2021 (in billions),” 2021. [Online]. Available: https://www.statista.com/statistics/251666/number-of-digital-buyers-worldwide/
H. Nurhayati-Wolff, “Annual Gross Merchandise Volume (GMV) of the ecommerce market in Indonesia from 2019 to 2023 with a forecast for 2030 (in billion U.S. Dollars),” 2023. [Online]. Available: https://www.statista.com/statistics/1117608/indonesia-gmv-e-commerce-market/
——, “Leading e-commerce sites in indonesia as of 2nd quarter 2022, by monthly traffic (in million web visits),” 2023. [Online]. Available: https://www.statista.com/statistics/869700/indonesia-top-10-e-commerce-sites/
M. Kukar-Kinney and A. G. Close, “The determinants of consumers online shopping cart abandonment,” Journal of the Academy of Marketing Science, vol. 38, pp. 240–250, 2010.
J. D. Song, “A study on online shopping cart abandonment: A product category perspective,” Journal of Internet Commerce, vol. 18, no. 4, pp. 337–368, 2019.
K. V. Gelder, “Online shopping cart abandonment rate in selected industries worldwide in 2022,” 2024. [Online]. Available: https://www.statista.com/statistics/457078/category-cart-abandonment-rate-worldwide/
S. Moore and S. Mathews, “An exploration of online shopping cart abandonment syndrome–A matter of risk and reputation,” Journal of Website Promotion, vol. 2, no. 1-2, pp. 71–88, 2008.
S. Chevalier, “Primary reason for digital shoppers worldwide to abandon their carts as of January 2019,” 2023. [Online]. Available: https://shorturl. at/elvQ0
J. Duvall, “Shipping is critical to keeping online shoppers happy,” 2019. [Online]. Available: https://shorturl.at/iuxUV
Y. Xu and J. S. Huang, “Factors influencing cart abandonment in the online shopping process,” Social Behavior and Personality: An International Journal, vol. 43, no. 10, pp. 1617–1627, 2015.
M. F. M. Gustaman and C. K. Dewi, “Analisis faktor-faktor yang mendorong shopping cart abandonment,” eProceedings of Management, vol. 6, no. 2, pp. 3895–3905, 2019.
J. Cho, “Likelihood to abort an online transaction: Influences from cognitive evaluations, attitudes, and behavioral variables,” Information & Management, vol. 41, no. 7, pp. 827–838, 2004.
L. L. Yusuf, D. Tamara, and N. J. Setiadi, “The determinants for shopping cart abandonment,” Emerging Markets: Business and Management Studies Journal, vol. 8, no. 2, pp. 89–107, 2021.
M. Erdil, “Factors affecting shopping cart abandonment: Pre-decisional conflict as a mediator,” Journal of Management Marketing and Logistics, vol. 5, no. 2, pp. 140–152, 2018.
R. K. Rajamma, A. K. Paswan, and M. M. Hossain, “Why do shoppers abandon shopping cart? perceived waiting time, risk, and transaction inconvenience,” Journal of Product & Brand Management, vol. 18, no. 3, pp. 188–197, 2009.
G. H. Huang, N. Korfiatis, and C. T. Chang, “Mobile shopping cart abandonment: The roles of conflicts, ambivalence, and hesitation,” Journal of Business Research, vol. 85, pp. 165–174, 2018.
A. K. S. Ong, M. J. R. Dejucos, M. A. F. Rivera, J. V. D. J. Mu˜noz, M. S. Obed, and K. P. E. Robas, “Utilizing SEM-RFC to predict factors affecting online shopping cart abandonment during the COVID-19 pandemic,” Heliyon, vol. 8, no. 11, pp. 1–13, 2022.
A. P. Kapoor and M. Vij, “Following you wherever you go: Mobile shopping ‘cart-checkout’ abandonment,” Journal of Retailing and Consumer Services, vol. 61, 2021.
Y. Jiang, J. Shang, and Y. Liu, “Optimizing shipping-fee schedules to maximize e-tailer profits,” International Journal of Production Economics, vol. 146, no. 2, pp. 634–645, 2013.
N. Sondhi, “Segmenting & profiling the deflecting customer: Understanding shopping cart abandonment,” Procedia computer science, vol. 122, pp. 392–399, 2017.
Z. Bao and J. Yang, “Why online consumers have the urge to buy impulsively: Roles of serendipity, trust and flow experience,” Management Decision, vol. 60, no. 12, pp. 3350–3365, 2022.
Q. Sun, R. K. Rajamma, D. D. Heisley, and M. A. Soliman, “Examining scarcity in mobile promotion and purchase intention: The role of location,” Journal of Marketing Theory and Practice, vol. 30, no. 1, pp. 1–19, 2022.
M. Khouja, H. Ajjan, and X. Liu, “The effect of return and price adjustment policies on a retailer’s performance,” European Journal of Operational Research, vol. 276, no. 2, pp. 466–482, 2019.
L. Hsiao and Y. J. Chen, “Retailer’s rationale to refuse consumer returns in supply chains,” Naval Research Logistics (NRL), vol. 62, no. 8, pp. 686–701, 2015.
A. S. Al-Adwan, M. K. Alrousan, H. Yaseen, A. M. Alkufahy, and M. Alsoud, “Boosting online purchase intention in high-uncertainty-avoidance societies: A Signaling theory approach,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 8, no. 3, pp. 1–20, 2022.
P. Oghazi, S. Karlsson, D. Hellstr¨om, and K. Hjort, “Online purchase return policy leniency and purchase decision: Mediating role of consumer trust,” Journal of Retailing and Consumer Services, vol. 41, pp. 190–200, 2018.
Y. Jie, N. Subramanian, K. Ning, and D. Edwards, “Product delivery service provider selection and customer satisfaction in the era of Internet of things: A Chinese e-retailers’ perspective,” International Journal of Production Economics, vol. 159, pp. 104–116, 2015.
S. A. Hussain, R. V. Mani, and S. S. Chauhan, “Role of various determinants of trust influencing retailers’ purchase intention for Fast Moving Consumer Goods (FMCG) from B2B ecommerce,” Specialusis Ugdymas, vol. 1, no. 43, pp. 1695–1712, 2022.
N. Vasi´c, M. Kilibarda, M. Andreji´c, and S. Jovi´c, “Satisfaction is a function of users of logistics services in e-commerce,” Technology Analysis & Strategic Management, vol. 33, no. 7, pp. 813–828, 2021.
M. Revindran, P. N. K. Ragen, and B. Mahmud, “A study on logistics service quality in e-retailing amongst online shoppers in Kuala Lumpur,” in IOP Conference Series: Materials Science and Engineering, vol. 780, no. 6. IOP Publishing, 2020, pp. 1–8.
J. M. Riley and R. Klein, “How logistics capabilities offered by retailers influence millennials’ online purchasing attitudes and intentions,” Young Consumers, vol. 22, no. 1, pp. 131–151, 2021.
D. Jiang, G. Zhang, and L. Wang, “Empty the shopping cart? The effect of shopping cart item sorting on online shopping cart abandonment behavior,” Journal of Theoretical and Applied Electronic Commerce Research, vol. 16, no. 6, pp. 1973–1996, 2021.
B. Daroch, G. Nagrath, and A. Gupta, “A study on factors limiting online shopping behaviour of consumers,” Rajagiri Management Journal, vol. 15, no. 1, pp. 39–52, 2021.
J. Henseler, C. M. Ringle, and M. Sarstedt, “A new criterion for assessing discriminant validity in variance-based structural equation modeling,” Journal of the Academy of Marketing Science, vol. 43, pp. 115–135, 2015.
J. Cohen, Statistical power analysis for the behavioral sciences. L. Erlbaum Associates, 1988.
S. Mishra, G. Malhotra, and S. R. Tiwari, “Moderating effect of cognitive conflict on the relationship between value consciousness and online shopping cart abandonment,” The International Review of Retail, Distribution and Consumer Research, vol. 31, no. 5, pp. 511–530, 2021.
M. K. S. Barbhai, Y. K. Sharma, and S. B. Sable, “A comprehensive study of barriers in electronic transactions for customers and banks,” Journal of Positive School Psychology, vol. 6, no. 4, pp. 2332–2339, 2022.
S. B. B. Priyadarshini, “A comprehensive study of security in electronic commerce frameworks in the modern era of technology,” in Artificial intelligence and cybersecurity. CRC Press, 2022, pp. 121–140.
F. Liu and A. Brandyberry, “Exploring the effects of aggregate review characteristics on mobile application adoption,” in Thirty Fifth International Conference on Information Systems, Auckland, 2014, pp. 1–19.
S. Singh, “Impact of neuromarketing applications on consumers,” Journal of Business and Management, vol. 26, no. 2, pp. 33–52, 2020.
K. W. Tham, O. Dastane, Z. Johari, and N. B. Ismail, “Perceived risk factors affecting consumers’ online shopping behaviour,” The Journal of Asian Finance, Economics and Business, vol. 6, no. 4, pp. 246–260, 2019.
B. Al Kurdi, M. Alshurideh, I. Akour, M. H. Alzoubi, B. Obeidat, and A. Alhamad, “The role of digital marketing channels on consumer buying decisions through eWOM in the Jordanian markets,” International Journal of Data and Network Science, vol. 6, no. 4, pp. 1175–1186, 2022.
S. Lee and J. Y. Choeh, “The determinants of helpfulness of online reviews,” Behaviour & Information Technology, vol. 35, no. 10, pp. 853–863, 2016.
C. Mondal and B. C. Giri, “Analyzing strategies in a green e-commerce supply chain with return policy and exchange offer,” Computers & Industrial Engineering, vol. 171, 2022.
N. Chawla and B. Kumar, “E-commerce and consumer protection in India: The emerging trend,” Journal of Business Ethics, vol. 180, no. 2, pp. 581–604, 2022.
K. Cao, Y. Xu, Q. Wu, J. Wang, and C. Liu, “Optimal channel and logistics service selection strategies in the e-commerce context,” Electronic Commerce Research and Applications, vol. 48, 2021.
J. Karcz and B. ´ Slusarczyk, “Criteria of quality requirements deciding on choice of the logistic operator from a perspective of his customer and the end recipient of goods,” Production Engineering Archives, vol. 27, no. 1, pp. 58–68, 2021.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Arta Moro Sundjaja, Ariel Velasco Tatuil, Dionisius Vincent Scholus, Yolanda Dwi Restiani
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)
