Factors Affecting Cart Abandonment in E-Commerce Platforms

Title: Factors Affecting Cart Abandonment in E-Commerce Platforms

Author: 

  1. Aditya Vijay Zode – 021331025636
  2. Kavita Sharma – 021331025198
  3. Zishan Khan – 021331025540

Introduction:

Cart abandonment poses a significant challenge for online retailers, adversely affecting their revenue and profitability. It describes instances where shoppers place items in their carts but leave the site without finalizing their purchase. Various factors contribute to this phenomenon, such as elevated shipping fees, complicated checkout processes, limited payment options, concerns about security, and unanticipated extra charges. Grasping these elements is vital for businesses to improve customer satisfaction, enhance conversion rates, and develop effective tactics to minimize abandonment and boost overall sales performance.

Objective:

  1. To pinpoint the main factors affecting cart abandonment rates among internet shoppers.
  2. To investigate how pricing, shipping fees, and undisclosed costs influence buying choices.
  3. To explore how website usability and the complexity of the checkout process contribute to customer drop-offs.
  4. To analyze how payment alternatives and concerns regarding security affect the completion of transactions.
  5. To examine how delivery times and return policies impact consumer trust.

 

Data Collection Type:

1.     Factor Analysis

2.     Cluster Analysis

 

Data Analysis:

1.     Factor Analysis

·       KMO and Bartlett’s Test

·       Variance Explained

·       Coefficient Matrice

2.     Cluster Analysis

·       Cluster

·       Method

·       Table of Member

 

Factor Analysis:

KMO and Bartlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .337
Bartlett’s Test of Sphericity Approx. Chi-Square 149.128
df 120
Sig. .037
Covariance Matrix
  Q1_HighShipping Q2_UnexpectedCharges Q3_LowerPriceElsewhere Q4_WaitForDiscount Q5_DontTrustSeller Q6_PaymentSecurityConcern Q7_NoReturnPolicy Q8_ComplicatedCheckout Q9_TooManySteps Q10_SlowWebsite Q11_LimitedPaymentOptions Q12_PaymentFailure Q13_LongDeliveryTime Q14_UnclearDeliveryDate Q15_AddForComparison Q16_ForgetToPurchase
Q1_HighShipping .679 -.210 .058 -.025 -.028 -.135 .014 .172 -.135 .120 .320 -.209 .116 -.203 -.009 .026
Q2_UnexpectedCharges -.210 .695 -.074 .130 -.256 .199 .113 -.038 -.002 -.025 -.169 .119 -.203 .101 -.036 -.026
Q3_LowerPriceElsewhere .058 -.074 .721 .014 -.352 -.109 .010 .011 .025 .036 .155 .065 .072 .087 .058 .122
Q4_WaitForDiscount -.025 .130 .014 .971 .191 .107 .151 .032 .122 .024 -.041 .212 -.145 -.217 -.047 -.122
Q5_DontTrustSeller -.028 -.256 -.352 .191 1.419 -.036 .203 -.018 -.133 .210 .333 -.020 -.014 -.029 -.115 -.061
Q6_PaymentSecurityConcern -.135 .199 -.109 .107 -.036 1.541 .424 -.273 .012 .125 -.036 -.101 .145 .159 .242 .093
Q7_NoReturnPolicy .014 .113 .010 .151 .203 .424 1.637 .023 .008 .127 .189 -.157 .275 -.232 -.008 -.049
Q8_ComplicatedCheckout .172 -.038 .011 .032 -.018 -.273 .023 .820 -.066 .055 -.119 -.058 -.058 .130 .106 -.099
Q9_TooManySteps -.135 -.002 .025 .122 -.133 .012 .008 -.066 .712 .060 -.046 .298 -.116 -1.287E-17 -.077 -4.747E-17
Q10_SlowWebsite .120 -.025 .036 .024 .210 .125 .127 .055 .060 1.077 -.051 -.203 .058 -.145 -.155 -.165
Q11_LimitedPaymentOptions .320 -.169 .155 -.041 .333 -.036 .189 -.119 -.046 -.051 1.448 -.020 .203 -.159 -.071 .128
Q12_PaymentFailure -.209 .119 .065 .212 -.020 -.101 -.157 -.058 .298 -.203 -.020 1.632 -.188 .362 .175 .090
Q13_LongDeliveryTime .116 -.203 .072 -.145 -.014 .145 .275 -.058 -.116 .058 .203 -.188 1.072 -.130 -.029 -3.218E-17
Q14_UnclearDeliveryDate -.203 .101 .087 -.217 -.029 .159 -.232 .130 -1.287E-17 -.145 -.159 .362 -.130 1.739 .029 -.101
Q15_AddForComparison -.009 -.036 .058 -.047 -.115 .242 -.008 .106 -.077 -.155 -.071 .175 -.029 .029 .773 .113
Q16_ForgetToPurchase .026 -.026 .122 -.122 -.061 .093 -.049 -.099 -4.747E-17 -.165 .128 .090 -3.218E-17 -.101 .113 1.113
Correlation Matrix
  Q1_HighShipping Q2_UnexpectedCharges Q3_LowerPriceElsewhere Q4_WaitForDiscount Q5_DontTrustSeller Q6_PaymentSecurityConcern Q7_NoReturnPolicy Q8_ComplicatedCheckout Q9_TooManySteps Q10_SlowWebsite Q11_LimitedPaymentOptions Q12_PaymentFailure Q13_LongDeliveryTime Q14_UnclearDeliveryDate Q15_AddForComparison Q16_ForgetToPurchase
Correlation Q1_HighShipping 1.000 -.306 .082 -.031 -.028 -.132 .013 .230 -.193 .141 .323 -.199 .136 -.187 -.013 .030
Q2_UnexpectedCharges -.306 1.000 -.105 .158 -.258 .192 .106 -.050 -.003 -.029 -.168 .112 -.235 .092 -.050 -.030
Q3_LowerPriceElsewhere .082 -.105 1.000 .016 -.348 -.103 .009 .014 .035 .041 .152 .060 .082 .078 .077 .136
Q4_WaitForDiscount -.031 .158 .016 1.000 .163 .087 .120 .036 .147 .023 -.035 .168 -.142 -.167 -.054 -.117
Q5_DontTrustSeller -.028 -.258 -.348 .163 1.000 -.024 .133 -.017 -.132 .169 .232 -.013 -.012 -.018 -.109 -.048
Q6_PaymentSecurityConcern -.132 .192 -.103 .087 -.024 1.000 .267 -.243 .012 .097 -.024 -.064 .113 .097 .221 .071
Q7_NoReturnPolicy .013 .106 .009 .120 .133 .267 1.000 .020 .008 .096 .123 -.096 .208 -.137 -.007 -.036
Q8_ComplicatedCheckout .230 -.050 .014 .036 -.017 -.243 .020 1.000 -.087 .059 -.109 -.050 -.062 .109 .134 -.103
Q9_TooManySteps -.193 -.003 .035 .147 -.132 .012 .008 -.087 1.000 .069 -.045 .277 -.133 .000 -.103 .000
Q10_SlowWebsite .141 -.029 .041 .023 .169 .097 .096 .059 .069 1.000 -.041 -.153 .054 -.106 -.170 -.151
Q11_LimitedPaymentOptions .323 -.168 .152 -.035 .232 -.024 .123 -.109 -.045 -.041 1.000 -.013 .163 -.100 -.067 .100
Q12_PaymentFailure -.199 .112 .060 .168 -.013 -.064 -.096 -.050 .277 -.153 -.013 1.000 -.142 .215 .156 .067
Q13_LongDeliveryTime .136 -.235 .082 -.142 -.012 .113 .208 -.062 -.133 .054 .163 -.142 1.000 -.096 -.032 .000
Q14_UnclearDeliveryDate -.187 .092 .078 -.167 -.018 .097 -.137 .109 .000 -.106 -.100 .215 -.096 1.000 .025 -.073
Q15_AddForComparison -.013 -.050 .077 -.054 -.109 .221 -.007 .134 -.103 -.170 -.067 .156 -.032 .025 1.000 .122
Q16_ForgetToPurchase .030 -.030 .136 -.117 -.048 .071 -.036 -.103 .000 -.151 .100 .067 .000 -.073 .122 1.000
Anti-image Matrices
  Q1_HighShipping Q2_UnexpectedCharges Q3_LowerPriceElsewhere Q4_WaitForDiscount Q5_DontTrustSeller Q6_PaymentSecurityConcern Q7_NoReturnPolicy Q8_ComplicatedCheckout Q9_TooManySteps Q10_SlowWebsite Q11_LimitedPaymentOptions Q12_PaymentFailure Q13_LongDeliveryTime Q14_UnclearDeliveryDate Q15_AddForComparison Q16_ForgetToPurchase
Anti-image Covariance Q1_HighShipping .633 .202 .083 -.080 .167 .033 -.011 -.165 .163 -.151 -.257 .044 .015 .057 .019 -.049
Q2_UnexpectedCharges .202 .626 .161 -.144 .252 -.064 -.136 -.015 .171 -.088 -.072 -.072 .187 -.054 .096 -.031
Q3_LowerPriceElsewhere .083 .161 .662 -.169 .296 .141 -.097 .039 .076 -.182 -.193 -.008 -.012 -.156 -.070 -.139
Q4_WaitForDiscount -.080 -.144 -.169 .735 -.194 -.141 -.001 -.086 -.112 .113 .102 -.142 .075 .223 .083 .144
Q5_DontTrustSeller .167 .252 .296 -.194 .516 .071 -.129 .013 .183 -.201 -.222 -.029 .081 -.098 .027 -.062
Q6_PaymentSecurityConcern .033 -.064 .141 -.141 .071 .645 -.186 .230 -.016 -.153 -.030 .128 -.093 -.196 -.250 -.100
Q7_NoReturnPolicy -.011 -.136 -.097 -.001 -.129 -.186 .785 -.108 -.070 .032 -.035 .039 -.165 .131 .023 .054
Q8_ComplicatedCheckout -.165 -.015 .039 -.086 .013 .230 -.108 .757 .011 -.070 .100 .075 .020 -.177 -.186 .032
Q9_TooManySteps .163 .171 .076 -.112 .183 -.016 -.070 .011 .762 -.137 -.072 -.205 .122 .016 .120 -.028
Q10_SlowWebsite -.151 -.088 -.182 .113 -.201 -.153 .032 -.070 -.137 .767 .152 .049 -.025 .123 .131 .144
Q11_LimitedPaymentOptions -.257 -.072 -.193 .102 -.222 -.030 -.035 .100 -.072 .152 .689 -.036 -.076 .058 .045 -.008
Q12_PaymentFailure .044 -.072 -.008 -.142 -.029 .128 .039 .075 -.205 .049 -.036 .741 -.008 -.182 -.182 -.063
Q13_LongDeliveryTime .015 .187 -.012 .075 .081 -.093 -.165 .020 .122 -.025 -.076 -.008 .805 .047 .074 .031
Q14_UnclearDeliveryDate .057 -.054 -.156 .223 -.098 -.196 .131 -.177 .016 .123 .058 -.182 .047 .741 .109 .127
Q15_AddForComparison .019 .096 -.070 .083 .027 -.250 .023 -.186 .120 .131 .045 -.182 .074 .109 .761 -.034
Q16_ForgetToPurchase -.049 -.031 -.139 .144 -.062 -.100 .054 .032 -.028 .144 -.008 -.063 .031 .127 -.034 .882
Anti-image Correlation Q1_HighShipping .439a .321 .129 -.117 .292 .052 -.016 -.238 .235 -.217 -.389 .065 .021 .084 .028 -.065
Q2_UnexpectedCharges .321 .353a .250 -.212 .444 -.101 -.194 -.022 .247 -.127 -.109 -.106 .263 -.079 .140 -.041
Q3_LowerPriceElsewhere .129 .250 .233a -.242 .507 .216 -.134 .055 .107 -.256 -.286 -.012 -.016 -.222 -.098 -.181
Q4_WaitForDiscount -.117 -.212 -.242 .270a -.315 -.205 -.001 -.115 -.149 .150 .143 -.192 .098 .302 .111 .179
Q5_DontTrustSeller .292 .444 .507 -.315 .245a .122 -.202 .021 .292 -.320 -.372 -.047 .126 -.158 .044 -.091
Q6_PaymentSecurityConcern .052 -.101 .216 -.205 .122 .321a -.262 .330 -.022 -.217 -.046 .186 -.129 -.283 -.358 -.133
Q7_NoReturnPolicy -.016 -.194 -.134 -.001 -.202 -.262 .434a -.140 -.090 .041 -.048 .051 -.207 .172 .030 .065
Q8_ComplicatedCheckout -.238 -.022 .055 -.115 .021 .330 -.140 .343a .015 -.091 .139 .100 .026 -.236 -.245 .040
Q9_TooManySteps .235 .247 .107 -.149 .292 -.022 -.090 .015 .324a -.179 -.100 -.272 .156 .022 .158 -.034
Q10_SlowWebsite -.217 -.127 -.256 .150 -.320 -.217 .041 -.091 -.179 .261a .210 .065 -.032 .163 .172 .175
Q11_LimitedPaymentOptions -.389 -.109 -.286 .143 -.372 -.046 -.048 .139 -.100 .210 .367a -.051 -.102 .081 .063 -.011
Q12_PaymentFailure .065 -.106 -.012 -.192 -.047 .186 .051 .100 -.272 .065 -.051 .489a -.010 -.246 -.242 -.078
Q13_LongDeliveryTime .021 .263 -.016 .098 .126 -.129 -.207 .026 .156 -.032 -.102 -.010 .537a .061 .094 .037
Q14_UnclearDeliveryDate .084 -.079 -.222 .302 -.158 -.283 .172 -.236 .022 .163 .081 -.246 .061 .292a .145 .157
Q15_AddForComparison .028 .140 -.098 .111 .044 -.358 .030 -.245 .158 .172 .063 -.242 .094 .145 .315a -.042
Q16_ForgetToPurchase -.065 -.041 -.181 .179 -.091 -.133 .065 .040 -.034 .175 -.011 -.078 .037 .157 -.042 .396a
a. Measures of Sampling Adequacy(MSA)
Communalities
  Initial Extraction
Q1_HighShipping 1.000 .621
Q2_UnexpectedCharges 1.000 .576
Q3_LowerPriceElsewhere 1.000 .695
Q4_WaitForDiscount 1.000 .685
Q5_DontTrustSeller 1.000 .846
Q6_PaymentSecurityConcern 1.000 .708
Q7_NoReturnPolicy 1.000 .583
Q8_ComplicatedCheckout 1.000 .745
Q9_TooManySteps 1.000 .577
Q10_SlowWebsite 1.000 .513
Q11_LimitedPaymentOptions 1.000 .575
Q12_PaymentFailure 1.000 .685
Q13_LongDeliveryTime 1.000 .523
Q14_UnclearDeliveryDate 1.000 .752
Q15_AddForComparison 1.000 .676
Q16_ForgetToPurchase 1.000 .500
Extraction Method: Principal Component Analysis.
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.099 13.120 13.120 2.099 13.120 13.120
2 1.686 10.537 23.657 1.686 10.537 23.657
3 1.528 9.550 33.207 1.528 9.550 33.207
4 1.365 8.532 41.739 1.365 8.532 41.739
5 1.279 7.991 49.730 1.279 7.991 49.730
6 1.210 7.564 57.294 1.210 7.564 57.294
7 1.092 6.826 64.120 1.092 6.826 64.120
8 .963 6.017 70.137      
9 .895 5.594 75.732      
10 .797 4.983 80.714      
11 .748 4.675 85.389      
12 .662 4.139 89.528      
13 .647 4.042 93.570      
14 .496 3.098 96.668      
15 .317 1.984 98.652      
16 .216 1.348 100.000      
Extraction Method: Principal Component Analysis.
Component Matrixa
  Component
1 2 3 4 5 6 7
Q1_HighShipping .673 -.235 -.079 .048 .215 .212 -.116
Q2_UnexpectedCharges -.569 .271 .114 -.225 .237 -.026 -.241
Q3_LowerPriceElsewhere .062 -.470 .288 .284 .512 -.035 .207
Q4_WaitForDiscount -.176 .432 -.147 .385 .277 .415 -.221
Q5_DontTrustSeller .309 .481 -.277 .178 -.563 .260 .161
Q6_PaymentSecurityConcern -.165 .435 .632 -.234 -.010 .128 .143
Q7_NoReturnPolicy .194 .508 .383 -.018 .243 .260 .115
Q8_ComplicatedCheckout .131 -.258 -.424 -.278 .302 .551 .097
Q9_TooManySteps -.362 .107 -.056 .549 .257 -.171 .187
Q10_SlowWebsite .270 .376 -.183 -.054 .397 -.123 .299
Q11_LimitedPaymentOptions .502 -.021 .227 .473 -.184 .088 .083
Q12_PaymentFailure -.512 -.142 -.004 .499 -.123 .287 .238
Q13_LongDeliveryTime .476 .035 .408 -.085 .039 -.152 .311
Q14_UnclearDeliveryDate -.379 -.237 -.051 -.204 -.202 .065 .681
Q15_AddForComparison -.151 -.296 .375 -.199 -.089 .613 -.047
Q16_ForgetToPurchase .003 -.293 .451 .234 -.214 .002 -.331
Extraction Method: Principal Component Analysis.

a. 7 components extracted.

 

Case Processing Summarya,b
Cases
Valid Missing Total
N Percent N Percent N Percent
70 100.0 0 .0 70 100.0
a.  Squared Euclidean Distance used
b. Average Linkage (Between Groups)
Agglomeration Schedule
Stage Cluster Combined Coefficients Stage Cluster First Appears Next Stage
Cluster 1 Cluster 2 Cluster 1 Cluster 2
1 33 68 7.000 0 0 14
2 65 66 7.000 0 0 26
3 3 60 7.000 0 0 50
4 4 40 8.000 0 0 23
5 21 52 9.000 0 0 27
6 20 63 10.000 0 0 41
7 44 58 11.000 0 0 13
8 7 48 11.000 0 0 29
9 38 70 12.000 0 0 25
10 12 34 12.000 0 0 34
11 31 45 14.000 0 0 12
12 22 31 14.000 0 11 23
13 30 44 14.500 0 7 36
14 33 36 14.500 1 0 39
15 37 56 15.000 0 0 38
16 8 49 15.000 0 0 42
17 6 18 15.000 0 0 30
18 43 69 16.000 0 0 35
19 29 64 16.000 0 0 47
20 42 47 16.000 0 0 43
21 23 35 16.000 0 0 45
22 5 25 16.000 0 0 49
23 4 22 16.333 4 12 44
24 27 62 17.000 0 0 49
25 38 41 17.000 9 0 36
26 13 65 17.500 0 2 47
27 21 26 17.500 5 0 42
28 1 16 18.000 0 0 38
29 7 15 18.500 8 0 46
30 6 11 18.500 17 0 57
31 51 61 19.000 0 0 60
32 32 57 19.000 0 0 48
33 17 39 19.000 0 0 65
34 12 19 19.000 10 0 44
35 43 46 20.000 18 0 54
36 30 38 20.889 13 25 40
37 50 55 21.000 0 0 39
38 1 37 21.000 28 15 55
39 33 50 21.500 14 37 51
40 30 53 21.667 36 0 51
41 9 20 22.000 0 6 58
42 8 21 22.167 16 27 53
43 28 42 23.000 0 20 63
44 4 12 24.533 23 34 52
45 23 59 25.000 21 0 63
46 7 54 25.000 29 0 58
47 13 29 25.333 26 19 52
48 2 32 25.500 0 32 59
49 5 27 26.000 22 24 60
50 3 10 26.500 3 0 54
51 30 33 27.143 40 39 56
52 4 13 27.150 44 47 55
53 8 24 27.600 42 0 56
54 3 43 28.111 50 35 57
55 1 4 29.212 38 52 61
56 8 30 29.417 53 51 61
57 3 6 29.500 54 30 65
58 7 9 30.250 46 41 62
59 2 14 32.333 48 0 66
60 5 51 32.500 49 31 62
61 1 8 32.817 55 56 64
62 5 7 33.476 60 58 64
63 23 28 34.222 45 43 66
64 1 5 36.391 61 62 67
65 3 17 37.056 57 33 67
66 2 23 38.417 59 63 68
67 1 3 38.936 64 65 68
68 1 2 40.734 67 66 69
69 1 67 43.348 68 0 0
Initial Cluster Centers
  Cluster
1 2
Q1_HighShipping 3 3
Q2_UnexpectedCharges 4 3
Q3_LowerPriceElsewhere 4 2
Q4_WaitForDiscount 5 2
Q5_DontTrustSeller 1 4
Q6_PaymentSecurityConcern 4 3
Q7_NoReturnPolicy 1 3
Q8_ComplicatedCheckout 4 3
Q9_TooManySteps 5 2
Q10_SlowWebsite 2 4
Q11_LimitedPaymentOptions 1 1
Q12_PaymentFailure 5 1
Q13_LongDeliveryTime 2 5
Q14_UnclearDeliveryDate 5 1
Q15_AddForComparison 3 3
Q16_ForgetToPurchase 4 3
Iteration Historya
Iteration Change in Cluster Centers
1 2
1 4.468 4.607
2 .139 .157
3 .105 .120
4 .000 .000
a. Convergence achieved due to no or small change in cluster centers. The maximum absolute coordinate change for any center is .000. The current iteration is 4. The minimum distance between initial centers is 9.165.
Final Cluster Centers
  Cluster
1 2
Q1_HighShipping 4 4
Q2_UnexpectedCharges 4 4
Q3_LowerPriceElsewhere 4 3
Q4_WaitForDiscount 3 3
Q5_DontTrustSeller 3 3
Q6_PaymentSecurityConcern 3 3
Q7_NoReturnPolicy 3 3
Q8_ComplicatedCheckout 4 4
Q9_TooManySteps 4 3
Q10_SlowWebsite 4 4
Q11_LimitedPaymentOptions 3 3
Q12_PaymentFailure 4 2
Q13_LongDeliveryTime 3 3
Q14_UnclearDeliveryDate 4 2
Q15_AddForComparison 3 3
Q16_ForgetToPurchase 4 3
ANOVA
  Cluster Error F Sig.
Mean Square df Mean Square df
Q1_HighShipping 6.218 1 .598 68 10.400 .002
Q2_UnexpectedCharges 5.004 1 .631 68 7.925 .006
Q3_LowerPriceElsewhere 2.563 1 .694 68 3.691 .059
Q4_WaitForDiscount .160 1 .983 68 .163 .688
Q5_DontTrustSeller 11.329 1 1.274 68 8.894 .004
Q6_PaymentSecurityConcern .012 1 1.564 68 .008 .931
Q7_NoReturnPolicy 10.404 1 1.509 68 6.897 .011
Q8_ComplicatedCheckout .004 1 .832 68 .005 .943
Q9_TooManySteps 1.967 1 .694 68 2.835 .097
Q10_SlowWebsite .720 1 1.083 68 .665 .418
Q11_LimitedPaymentOptions 9.774 1 1.326 68 7.371 .008
Q12_PaymentFailure 33.377 1 1.165 68 28.654 <.001
Q13_LongDeliveryTime 6.937 1 .986 68 7.034 .010
Q14_UnclearDeliveryDate 30.328 1 1.319 68 22.998 <.001
Q15_AddForComparison .068 1 .784 68 .086 .770
Q16_ForgetToPurchase 1.321 1 1.110 68 1.190 .279
The F tests should be used only for descriptive purposes because the clusters have been chosen to maximize the differences among cases in different clusters. The observed significance levels are not corrected for this and thus cannot be interpreted as tests of the hypothesis that the cluster means are equal.
Number of Cases in each Cluster
Cluster 1 37.000
2 33.000
Valid 70.000
Missing .000

 

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