Perceived performance risk and its influence on Abandoned Cart Syndrome (ACS) - An exploratory study

Despite predictions of Internet shopping reaching 6.9 trillion dollars by the end of 2004, research is now suggesting many online consumers are still very reluctant to complete the online shopping process. A number of authors have attributed consumers' reluctance to purchase online to apparent barriers, however, such barriers have not been fully examined within a theoretical context. While most studies of consumers' decision to shop on the Internet have focussed on key shopping determinants, this thesis builds a conceptual model grounded in consumer behaviour theory. In particular, this thesis explores the application of the perceived risk theoretical framework, specifically looking at one dimension of perceived risk theory - performance risk and the influence it has on the phenomenon of Internet Abandoned Cart Syndrome (ACS). To explore this phenomenon, a number of extrinsic cues are identified as playing a major role in the performance evaluation process of online purchases. The combination of these elements enabled the researcher to develop a conceptual model from which a series of propositions were drawn. To acquire pertinent data and investigate each proposition, this study used a combination of indirect and direct techniques, namely projective techniques in the form of a third-person vignette, a structured tick-box questionnaire and finally semi-structured interviews.The results suggest that collectively the extrinsic cues of brand, reputation, design and price have an overall impact on the performance evaluation process just prior to an online purchase. Varying these cues either positively or negatively had a strong impact on performance evaluation. The conclusion of this study suggests consumers are often unable to measure the full extent of risk-taking directly. In the majority of cases, consumers are guided by numerous factors, some intrinsic, others extrinsic. E-tailers with an established reputation, a well designed web site with known brands and a balanced pricing strategy reduce the perceived performance risks associated with purchasing online, thus reducing the occurrence of ACS.