Individual Primary Data Project

Individual Primary Data Project
Ellie Long
Dec.1st
Instructor: Dr. James
A Study of Online Shopping Cart Abandonment: influence of
shipment cost, checkout process and holiday promotion
 INTRODUCTION
Online shopping has gradually changed people’s shopping behavior and become a vital part
of business transaction in contemporary society in decades. It has largely eliminated the
efforts needed to travel from shop to shop and facilitated the whole shopping process with
substantial convenience. Consumers are able to obtain almost everything they want through
several simple steps. They browse the website, click on items desired to put in the shopping
cart, and then either type in essential information to checkout or close the browser to
reconsider the purchase. In spite of all the attractive attributes of online shopping, it is not
necessary the truth that people pay for everything in their shopping cart every time. Chances
are that some of them save the cart for later purchase, or that they put items in for
comparison and leave them there forever. Shopping cart abandonment is a significant issue
for e-commerce companies as well as for click & brick corporations. Considerable amount of
consumers discard their shopping cart either because the purchase intention has faded away
or because more provocative items or deals have grabbed their attention.
It is a pleasant thing that an e commerce website has very huge visit volume. However, if the
shopping cart abandonment rate is as high as well, the owner should better figure out why, as
clicks don't generate profits. Consumers may change their minds about items they want. But
other factors that make them change their mind about the purchase are obviously more

critical and practically valuable things to look at. Understanding the controllable reasons that
contribute to high shopping cart abandonment rate and developing solutions to address their
concerns can help lower the abandonment rate and converse visit volume to checkout rates
noticeably, thereby increasing sales. This study focuses on factors leading to suspension or
procrastination of online purchase behavior and the factors help evolve online shopping
websites for better visitor’s experience. Also the results of this study reveal useful
suggestions in decreasing the shopping cart abandonment rate in empirical online business
world and generate substantial profits.
 LITERATURE REVIEW
1. General reasons causing shopping cart abandonment.
According to numerous research reports, shopping cart abandonment rates reach as high as
67%, meaning more than half of consumers would discard items that they intended to buy.
The explanations behind this phenomenon have been studied for decades yet the dynamic
situation is bringing in new challenges. Top reasons leading to shopping cart abandonment
are listed by Global Millennia Marketing in its 2002 report. The cost of shipping too high and
not shown until checkout has been rated by 69% of customers as the first and the uppermost
reason why they discard the cart, followed by changed mind and discarded cart contents with
a percentage of 61%. 57% of consumers put items in the cart for comparison or just
browsing. They initially do not intend to shop yet their purchase intention can be positively
affected and ultimately generate sales. However, with intention to purchase, consumers may
quit if the total cost of items is too high (49%) or save items for later purchase (47%). Even
though online shopping has simplified the shopping process, there is still 44% of people

discontinue to shop when the checkout process is too long. Out of stock products at checkout
time (39%) and requirement for too much personal information (35%) bother customers a lot
likewise. Besides, reasons such as poor site navigation and long download times (31%), lack
of sufficient product or contact information (31%), site unclear on delivery times (17%), no
order tracking options (16%), and no gift certificates (11%) are also mentioned in this
research. Surprisingly, only 27% of people think confusing checkout process is what hinders
their purchase and the percentage of people who are not willing to register at checkout is as
low as 23%. From author’s personal experience, a complex checkout process, including
registration, is a very abominable cause of shopping cart abandonment and a main reason to
switch from merchandisers unless the product is exclusive.
Nevertheless, data shows little evidence. Is it because shipping cost means so much that if the
free shipment is available, the negative influence from confusing checkout process can be
totally overlooked? Can certain attribute compensate other unfavorable factors and incite
purchase decision? This study will cover the topic.
2. Shipping cost.
E-commerce is built on the invisible Internet platform and based on developed distribution.
Naturally shipment becomes a critical matter both to merchandisers and to consumers.
Online retailers prefer low-cost shipment while customers desire prompt delivery at a price
as low as possible. This dilemma has challenged online retailers for years. According to
Henneberry (2012), 44% of people discard their shopping carts because of high delivery
charges. Similarly, 22% abandon the carts, as the shipping costs are not clearly specified at
all. Henneberry also mentioned a similar study from E-tailing Group. The study indicates that
“unconditional free shipping is the most important factor that leads customers to complete a

purchase.” As a matter of fact, 73% of interviewees rate unconditional free shipping as
“critical”.
Except for finishing primary transaction, consumers tend to purchase more goods due to the
availability of free shipment. A study conducted by Compete proves that 93% of online
shoppers are encouraged to buy more products if free shipping is offered. Customers who
receive free shipping incline to have higher degree of satisfaction and loyalty than those who
pay extra charges. Respondents also imply that limited delivery selections or a lack of
definitive delivery date keeps them from completing the transaction. The truth is that the
longer the delivery period would be, the less possible online buyers would buy. Nearly one
out of four online shoppers quit purchasing since the estimated delivery date is not available.
Moreover, 38% would give up buying if delivery would take longer than a week.
In Moth’s article, he mentions several solutions at checkout that would encourage the
completion of purchase. 75% of online shoppers would like to see a free-shipping option at
checkout and 60% want a guaranteed delivery date. The consumer logic behind this is that
consumers feel the value when shipment is free and that if they have to pay for the “extra”
fees they want the quality ensured, precise delivery time in this case. Data shows that two
third of the time consumers choose the most economical shipping method. Not only in
products but also in service, including shipment, do people search for a great value for the
money. For small online retailers, a sensible and informative shipping policy or pickup
process can probably attract regulars.
3. Checkout process.
According to a Webcredible report, around 10% of interviewees abandon their shopping cart
because of a time-consuming checkout process. The process usually involves multi-page

checkouts that continue presenting shoppers with additional forms, questions, or products.
Some of these additional efforts are necessary. Customers have to type in plenty of personal
information such as their address, contact information and credit card number to close the
transaction. However the inevitable long procedure including registration still scares away
potential customers. Same study reveals that 29% of online shoppers do not like registration
forms during check out. As a matter of fact, one respondent claims that “because of their
existing number of passwords, they feel inconvenienced when yet another service requires
them to create an account.”
The appearance of the feature “Express Checkout” has partially solved the problem.
Customers can choose to register at the first time and leave default information for future
purchase. “Express Checkout” enables customers to check out and complete the purchase
while they are browsing in a minute. The convenience to checkout would facilitate the
shopping procedure and thus provoke purchase intention.
4. Proliferating promotion
It is evidenced that statistics is extremely exaggerated during the holiday season. Sellers
present consumers with a wide razzle-dazzling selection of products along with similarly
dazzling promotions, alluring them to make impulse purchase. In fact, customers make an
abnormal number of purchases in a very short period of time and discard their shopping carts
as they search for the best deals among proliferating holiday promotions. The data from
comScore shows that people spent $37 billion online in November – December, 2011 and
over 50% of all online orders include free shipment. The holiday deals cast a significant
impact on shopping cart abandonment causing a holiday abandonment pattern: numerous
customers suspend online shopping to wait for anticipated holiday sales, and thereby leading

to a significant rising in the abandonment rate. The number is averagely 85% in the
Thanksgiving week and the highest abandonment rate, 89.2%, happens right before Black
Friday.
The existence of deal seekers leads to the phenomenon that experienced abandoners,
customers who have higher familiarity with the Internet and shop online more often, are
more likely to abandon their shopping carts then those with less online shopping experience.
This is very likely due to the growing sophistication of customer and awareness of common
promotion techniques. Consumers nowadays tend to do research online before they make
informed purchase decisions. It is also known that e-retailers would probably offer special
deals to abandoners who are considered as prospects with huge potential buying power.
Major sites recently start to follow up abandoners with reminders and occasionally discounts
or other incentives to push consumers to close the transaction. Understanding the technique
utilized by merchandisers, savvy customers in turn consciously discard their shopping carts
for better price and cause the shopping cart abandonment rate to shoot up significantly.
 METHOD
The objective of this study is to analyze the correlation between online shopping cart
abandonment rate and related factors, especially free shipment. All questions associate with
abandonment rate and factors leading to possible abandonment. Data is collected from
original consumer survey and several tests are conduct to support the hypothesis. First of all,
to build the foundation of this study, statements about online shopping behavior are included.
Questions such as “How often do you shop online” and “How likely will you abandon your
shopping cart” are used to segment samples into groups by the degree of tendency of e-

shopping. This grouping helps demonstrate how consumers from different groups feel about
and react to certain statement in detail, thereby revealing the consumer insight of each group.
Then in order to reveal to what extend variables affect shopping cart abandonment rate,
statements involving all variables are employed to verify the relationship. For example,
questions such as “Shopping cart total is higher than expected”, “Shipping costs are too high”
and “Checkout process is too long” are used to clarify the reasons that cause high
abandonment rate. Further, questions such as “I am more likely to purchase at a website that
offers unconditional free shipping even if the price is slightly expensive” and “I would
regularly purchase at a website that offers unconditional free shipping” are involved to testify
the precise impact that free shipment casts on abandonment rate. Questions like “I put
products in just to compare” and “I put products in for later purchase” are used to verify the
influence of holiday promotions since both type of consumers are looking for better deals to
save money. All questions utilized are closely connected with the subject of this research.
In spite of all the directly related factors, consumer demographic questions work as a
significant benchmark in analyzing likewise. Particular demographic groups could show
specific areas of concern and react differently each statement. Also individual observations
of each question independently expose specific trends or obvious behaviors that help
demonstrate the perception of high abandonment rate from the customer point of view.
Each question is employed to form an individual cross tabulation with the basic criterion
of possibility to abandon shopping cart. To exam the correlations of each statement and
abandonment rate, techniques such as Frequency test, Chi-Square and Pearson R Correlation
are applied to validate the existence, magnitude and direction of the association between two

variables and all the data is carefully calculated and analyzed to testify the relationship of
abandonment rate and certain variable.
 HYPOTHESES
As mentioned in numerous studies, shopping cart abandonment rate is affected by an
integrating group of factors and among them, free shipment, checkout process and holiday
promotion appear to be significantly influential. This study focuses on testifying the
existence and magnitude of these correlations.
Thus following hypotheses are proposed:
1) Shipping cost and shopping cart abandonment rate are strongly related.
2) The complexity of checkout process and shopping cart abandonment rate are strongly
related.
3) Holiday promotion and shopping cart abandonment rate are strongly related.
4) People save products in shopping cart for later purchase when they are not eligible for
free delivery.
 QUESTIONNAIRE
1) Online Purchase Behavior:
How often do you shop online?
Very Often Often Neutral Rarely Never
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
How likely will you abandon your shopping cart?
Very Likely Likely Neutral Rarely Never

☐ 1 ☐ 2 ☐ 3 ☐ 4
☐ 5
2) Demographic:
Gender
Female Male
☐ 1 ☐ 2
Age
Under 24 25 - 34 35 - 44 45 - 54 Over 55
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐ 5
Martial status
Married Single
☐ 1 ☐ 2
Education
No Formal Grade School High School College Grad School
Education Graduate Graduate Graduate Graduate
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐ 5
Annual household Income
Under $24,999 $25,000-$49,999 $50,000-$74,999 $75,000-$89,999 Over$90,000
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐ 5
3) Shipment Charge:
Cost of shipping is too high.
Strongly Strongly
Disagree Disagree Neutral Agree Agree
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
I am more likely to purchase at a website that offers unconditional free shipping even if
the price is slightly expensive.

Strongly Strongly
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
I would regularly purchase at a website that offers unconditional free shipping.
Strongly Strongly
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
I would buy more than expectedat a website that offers unconditional free shipping.
Strongly Strongly
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
Items or amount did not qualify for free shipping.
Strongly Strongly
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
Shipping and handling costs were listed too late.
Strongly Strongly
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
4) Checkout Process:
Checkout process is too long.
Strongly Strongly

☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
Checkout process is confusing.
Strongly Strongly
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
The website asks for too much personal information.
Strongly Strongly
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
5) Holiday Promotions:
I put products in shopping cart just to compare.
Strongly Strongly
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
I put products in shopping cart for later purchase.
Strongly Strongly
☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐
5
 RESULT & INTEPRETATION
1) Frequency Table

Q1. How often do you shop online?
Frequency Percent Valid Percent Cumulative Percent
Valid Very Often 21 35.0 35.0 35.0
Often 28 46.7 46.7 81.7
Neutral 10 16.7 16.7 98.3
Rarely 1 1.7 1.7 100.0
Total 60 100.0 100.0
Q2. How likely will you abandon your shopping cart?
Valid Very Likely 2 3.3 3.3 3.3
Likely 9 15.0 15.0 18.3
Neutral 23 38.3 38.3 56.7
Rarely 22 36.7 36.7 93.3
Never 4 6.7 6.7 100.0
Total 60 100.0 100.0
Q3. Gender
Valid Female 31 51.7 51.7 51.7
Male 29 48.3 48.3 100.0
Total 60 100.0 100.0
Q4. Age
Valid Under 24 51 85.0 85.0 85.0
25-34 9 15.0 15.0 100.0
Total 60 100.0 100.0
Q5. Marital Status
Valid Single 60 100.0 100.0 100.0
Q6. Education
Valid College graduate 39 65.0 65.0 65.0

Grad School graduate 21 35.0 35.0 100.0
Total 60 100.0 100.0
Q7. Annual Household Income
Valid Under $24,999 45 75.0 75.0 75.0
$25,000-$49,999 15 25.0 25.0 100.0
Total 60 100.0 100.0
Q8. Cost of shipping is too high.
Valid Neutral 7 11.7 11.7 11.7
Agree 24 40.0 40.0 51.7
Strongly Agree 29 48.3 48.3 100.0
Total 60 100.0 100.0
Q9. I am more likely to purchase at a website that offers unconditional free shipping evenif
the price is slightly expensive.
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly
Disagree
1 1.7 1.7 1.7
Disagree 5 8.3 8.3 10.0
Neutral 12 20.0 20.0 30.0
Agree 30 50.0 50.0 80.0
Strongly Agree 12 20.0 20.0 100.0
Total 60 100.0 100.0
Q10. I would regularly purchase at a website that offers unconditional free shipping.
Valid Neutral 4 6.7 6.7 6.7
Agree 27 45.0 45.0 51.7
Strongly Agree 29 48.3 48.3 100.0
Total 60 100.0 100.0
Q11. I would buy more than expected at a website that offers unconditional free shipping.
Valid Strongly Disagree 1 1.7 1.7 1.7

Disagree 9 15.0 15.0 16.7
Neutral 15 25.0 25.0 41.7
Agree 23 38.3 38.3 80.0
Strongly Agree 12 20.0 20.0 100.0
Total 60 100.0 100.0
Q12. Items or amount did not qualify for free shipping.
Frequency Percent Valid Percent
Cumulative
Percent
Disagree 6 10.0 10.0 11.7
Neutral 23 38.3 38.3 50.0
Agree 26 43.3 43.3 93.3
Strongly Agree 4 6.7 6.7 100.0
Total 60 100.0 100.0
Q13. Shipping and handling costs were listed too late.
Valid Disagree 3 5.0 5.0 5.0
Neutral 19 31.7 31.7 36.7
Agree 23 38.3 38.3 75.0
Strongly Agree 15 25.0 25.0 100.0
Total 60 100.0 100.0
Q14. Checkout process is too long.
Neutral 29 48.3 48.3 55.0
Agree 17 28.3 28.3 83.3
Strongly Agree 10 16.7 16.7 100.0
Total 60 100.0 100.0
Q15. Checkout process is confusing.
Neutral 18 30.0 30.0 33.3
Agree 25 41.7 41.7 75.0

Strongly Agree 15 25.0 25.0 100.0
Total 60 100.0 100.0
Q16. The website asks for too much personal information.
Neutral 23 38.3 38.3 43.3
Agree 29 48.3 48.3 91.7
Total 60 100.0 100.0
Q17. I put products in shopping cart just to compare.
Disagree 6 10.0 10.0 13.3
Neutral 16 26.7 26.7 40.0
Agree 28 46.7 46.7 86.7
Total 60 100.0 100.0
Q18. I put products in shopping cart for later purchase.
Neutral 20 33.3 33.3 38.3
Agree 30 50.0 50.0 88.3
Total 60 100.0 100.0
This study, due to the limitation of sample range, is conducted mostly among college or grad
school students who are in their 20s. Annual Household Income is an estimation based on their
living expenses and all sampled respondents are not married yet. This survey does not meet the
basic requirement of randomized sampling, thereby not generally representative. However, the

data could still be useful in revealing the online shopping behavior of the young educated
generation with modification.
From the frequency tabulation, several shopping patterns of educated consumers in 20s are
shown as below:
 Cumulatively over 80% of these consumers shop online frequently.
 They are neither likely nor unlikely to abandon the shopping cart. Though the number of
people who hardly abandon the shopping cart is more than that of who are likely to.
 Shipping cost is obviously the major reason why people abandon the shopping cart. Among
the 60 interviewed samples, people are either neutral or agree that high delivery charge cause
shopping cart abandonment.
 Half of people believe that they would regularly shop at websites that offers free shipping
though the price might be slightly higher.
 48% of respondents show loyalty to websites providing free shipment.
 More than 50% of respondents claim that they would spend more at a website with free
delivery.
 Answers of question 8-11 indicate a possible correlation between the availability of free
shipment and loyalty to certain website.
 Over 40% of people abandon shopping cart when they are not eligible for free delivery. They
might save it for later shopping or switch retailers.
 The shock of expensive extra fees including shipping charges scare online shoppers away if
the amount is not clearly brought up at the beginning.
 People are relatively neutral about the length of checkout process but the complexity of the
process matters. Over 40% people quit when the checkout procedure gets confusing.

 Nearly 50% of the respondents take privacy seriously that the exposure of too much personal
information would stop them from closing the transaction.
 Approximately half of interviewees like to put products in shopping cart to compare or to
save for later purchase. This type of people has very strong buying potential and retailers
could allocate limited resources to address their concern.
2) Crosstabulation
Q2 * Q3 Crosstabulation
Count
Q3
TotalFemale Male
Q2 Very Likely 1 1 2
Likely 4 5 9
Neutral 17 6 23
Rarely 8 14 22
Never 1 3 4
Total 31 29 60
Count
Q4
TotalUnder 24 25-34
Likely 7 2 9
Neutral 21 2 23
Rarely 19 3 22
Never 2 2 4
Total 51 9 60
Count

Q5
TotalSingle
Q2 Very Likely 2 2
Likely 9 9
Neutral 23 23
Rarely 22 22
Never 4 4
Total 60 60
Count
Q6
TotalCollege graduate Grad School graduate
Likely 8 1 9
Neutral 16 7 23
Rarely 10 12 22
Never 3 1 4
Total 39 21 60
Count
Q7
TotalUnder $24,999 $25,000-$49,999
Likely 7 2 9
Neutral 18 5 23
Rarely 15 7 22
Never 3 1 4
Total 45 15 60
Q8 Total

Neutral Agree Strongly Agree
Q2 Very Likely 0 0 2 2
Likely 0 5 4 9
Neutral 3 9 11 23
Rarely 3 9 10 22
Never 1 1 2 4
Total 7 24 29 60
Count
Q9
TotalStrongly Disagree Disagree Neutral Agree Strongly Agree
Q2 Very Likely 0 0 0 2 0 2
Likely 0 1 2 5 1 9
Neutral 0 2 6 9 6 23
Rarely 0 1 4 12 5 22
Never 1 1 0 2 0 4
Total 1 5 12 30 12 60
Count
Q10
TotalNeutral Agree Strongly Agree
Q2 Very Likely 0 0 2 2
Likely 1 3 5 9
Neutral 2 13 8 23
Rarely 1 9 12 22
Never 0 2 2 4
Total 4 27 29 60
Count
Q11

Likely 0 2 3 3 1 9
Neutral 0 4 4 10 5 23
Rarely 1 3 7 7 4 22
Never 0 0 0 2 2 4
Total 1 9 15 23 12 60
Count
Q12
Likely 0 1 4 3 1 9
Neutral 0 2 7 13 1 23
Rarely 0 2 9 9 2 22
Never 1 0 3 0 0 4
Total 1 6 23 26 4 60
Count
Q13
TotalDisagree Neutral Agree Strongly Agree
Q2 Very Likely 0 1 1 0 2
Likely 0 4 3 2 9
Neutral 1 6 12 4 23
Rarely 2 6 7 7 22
Never 0 2 0 2 4
Total 3 19 23 15 60
Count
Q14

Likely 0 4 3 2 9
Neutral 1 12 7 3 23
Rarely 2 10 5 5 22
Never 0 2 2 0 4
Total 4 29 17 10 60
Count
Q15
Likely 0 3 3 3 9
Neutral 1 7 8 7 23
Rarely 1 7 11 3 22
Never 0 1 2 1 4
Total 2 18 25 15 60
Count
Q16
Likely 1 2 6 0 9
Neutral 1 10 12 0 23
Rarely 0 11 9 2 22
Never 1 0 1 2 4
Total 3 23 29 5 60
Count
Q17

Likely 0 1 2 5 1 9
Neutral 0 3 7 10 3 23
Rarely 2 1 5 11 3 22
Never 0 0 2 1 1 4
Total 2 6 16 28 8 60
Count
Q18
Likely 0 0 9 0 9
Neutral 2 8 10 3 23
Rarely 0 9 9 4 22
Never 1 2 1 0 4
Total 3 20 30 7 60
 More income less likely to abandon shopping cart
 Free shipping is correlated with lower abandonment rate. At least free shipping won’t stop
people from purchasing
 Free delivery is somewhat correlated with loyalty. Further study is necessary
 Free shipment qualification and timing of presentation affects shopping intention yet not
obviously
3) One-Sample T test
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Q2 60 3.2833 .92226 .11906
Q8 60 4.3667 .68807 .08883
Q9 60 3.7833 .92226 .11906
Q10 60 4.4167 .61868 .07987
Q11 60 3.6000 1.02841 .13277

Q15 60 3.8833 .82527 .10654
Q16 60 3.6000 .71781 .09267
Q17 60 3.5667 .96316 .12434
Q18 60 3.6833 .74769 .09653
One-Sample Test
Test Value = 3
t df
Sig. (2-
tailed)
Mean
Difference
95% Confidence Interval of the
Difference
Lower Upper
Q2 2.380 59 .021 .28333 .0451 .5216
Q8 15.385 59 .000 1.36667 1.1889 1.5444
Q9 6.579 59 .000 .78333 .5451 1.0216
Q10 17.737 59 .000 1.41667 1.2568 1.5765
Q11 4.519 59 .000 .60000 .3343 .8657
Q15 8.291 59 .000 .88333 .6701 1.0965
Q16 6.475 59 .000 .60000 .4146 .7854
Q17 4.557 59 .000 .56667 .3179 .8155
Q18 7.079 59 .000 .68333 .4902 .8765
 There is significant difference existing in people’s tendency to abandon shopping cart.
 Cost of shipping seems to be the major concern when people thinking about discarding
shopping cart.
 People tend to have neutral attitudes towards statements regarding shopping cart
abandonment. Associating with data from frequency and crosstabulation, however, there is
slight tendency that free delivery reduces shopping cart abandonment rate.
4) Chi-Square Test
Count
Q17
Total
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree

Q12 Strongly
Disagree
0 0 1 0 0 1
Disagree 0 2 0 4 0 6
Neutral 2 2 4 12 3 23
Agree 0 2 9 10 5 26
Strongly Agree 0 0 2 2 0 4
Total 2 6 16 28 8 60
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 16.614a 16 .411
Likelihood Ratio 18.947 16 .271
Linear-by-Linear Association .734 1 .392
N of Valid Cases 60
a. 21 cells (84.0%) have expected count less than 5. The minimum expected count is
.03.
To testify the hypothesis “People save products in shopping cart for later purchase when they are
not eligible for free delivery”, a Chi-Square test has been conducted on related questions. From
the chart we find no clue suggesting that these eligibility for free delivery is correlated with the
delay on purchase. Thus the assumption that people may stock up products in order to get free
delivery is not established due to the lack of powerful evidence.
Q2 * Q14
Value df
Asymp. Sig. (2-
sided)
Linear-by-Linear
Association
.193 1 .661
N of Valid Cases 60
a. 16 cells (80.0%) have expected count less than 5. The minimum
expected count is .13.

Q2 * Q15
Value df
Asymp. Sig. (2-
sided)
Linear-by-Linear
Association
1.059 1 .303
N of Valid Cases 60
a. 14 cells (70.0%) have expected count less than 5. The minimum
expected count is .07.
Similarly, Chi-Square test has been employed on question 14 and 15 to prove if association
between shopping cart abandonment rate and length and complexity of checkout procedure
exists. However, data shows no significant evidence. This is probably because of the lack of
randomization of sample and small sample size.
Same thing happens on the correlation of loyalty and free delivery.
Q2 * Q9
N of Valid Cases 60
.03.
Q2 * Q10
N of Valid Cases 60
.13.
Q2 * Q11

N of Valid Cases 60
.03.
5) One Way ANOVA test
ANOVA
Q8
Sum of
Squares df Mean Square F Sig.
Between Groups .463 1 .463 .977 .327
Within Groups 27.471 58 .474
Total 27.933 59
To further study the consumer perception on free delivery, a One Way ANOVA test has been
conducted to show how different people think differently on certain statement. According to the
test, female and male tend to think alike about shipping charge. They all have concern about
shipping charge no matter man or woman.
 CONCLUSION
From the statistics gathered it is clear that free delivery does have some sort of connection
with shopping cart abandonment rate. It is also possible that checkout process and seeking
for better holiday deals are related with the rate. However, due to the lack of sophisticated
data collection and questionnaire design, the numbers in this study does not appear to be
representative. Elaborated research including randomized sampling, clearly stated questions
and larger sample size, is necessary to prove the relationship between shopping cart
abandonment rate and relative variables.
There is evidence that people prefer free delivery while shopping and are slightly less likely
to stop shopping when free shipment is available. For business owners, give delivery for free,

even if only on select items, would help boost consumer preference. For example,
lightweight goods retailers (such as jewelry) can provide free shipping which encourages
repeat business without a large burden on profits.
A survey by Jupiter Media Matrix found that 45% of surveyed companies were earning
profits on shipping charges, while the rest were either losing money or breaking even. Losing
money does not seem necessary, but breaking even and offering free shipment option could
be an effective method to penetrate the market while being gentle to the budget.
REFERENCE
 Henneberry R. (Aug. 2012), Nine ways to decrease shopping cart abandonment on your
ecommerce website. The Daily Egg. Retrieved from: http://blog.crazyegg.com/2012/08/14/
decrease-shopping-cart-abandonment/
 E Surveys Pro, Shopping cart abandonment surveys. Retrieved from: http://www.esurveys
pro.com/article-shopping-cart-abandonment-surveys.aspx
 Global Millennia Marketing (2002), Recent survey gives online merchants fifteen reasons for
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