Final Term Report
How Uncertainty Impacts Online Shopping Cart
Abandonment in Young Adults
METHODS IN BUSINESS RESEARCH - 7031
INSTRUCTOR: SIR WAJID H. RIZVI
Group 04
BIZZAL FARHAN - 24621
RABIYA USMAN - 24588
SHEZIL NASEERUDDIN - 24706
INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI
DECEMBER 15, 2023
Table of Contents
Abstract ........................................................................................................................................... 3
Introduction ..................................................................................................................................... 3
Problem Statement .......................................................................................................................... 4
Research Question & Objectives of Research ................................................................................ 4
Background and Literature Review ................................................................................................ 5
Abandonment/Obstacles: ............................................................................................................ 5
Seller Uncertainty .......................................................................................................................................................... 5
Product Related Uncertainties and Risk Perception: ...................................................................................... 7
Performance Uncertainty: .......................................................................................................................................... 8
Other Inhibitors:........................................................................................................................................................... 10
Communication Strategy Facilitators: ...................................................................................... 11
Perceived Effectiveness of Product Description ............................................................................................. 11
Perceived Interactivity .............................................................................................................................................. 12
Perceived Effectiveness of Feedback System ................................................................................................... 14
Direction for Future Research:...................................................................................................... 16
Theoretical Framework ................................................................................................................. 17
Research Methodology ................................................................................................................. 18
Procedures and Participants: ..................................................................................................... 18
Measurements: .......................................................................................................................... 21
Control Variables: ..................................................................................................................... 21
Analytical Technique: ............................................................................................................... 21
Data Analysis & Results ............................................................................................................... 22
Factor analysis .......................................................................................................................... 22
Total Variance Explained:......................................................................................................................................... 22
Scree Plot ......................................................................................................................................................................... 23
KMO and Bartlett’s Test: ........................................................................................................................................... 23
Harmans Single Factor Test..................................................................................................................................... 24
Reliability.................................................................................................................................. 24
Correlation ................................................................................................................................ 25
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Independent T Test (Non-Parametric Mann Whitney Test) ..................................................... 27
Multiple Linear Regression Analysis........................................................................................ 29
Moderation Analysis ................................................................................................................. 33
Discussions ................................................................................................................................... 34
Minor Methodology ...................................................................................................................... 36
Analysis - Focus Groups ............................................................................................................... 37
Managerial implications................................................................................................................ 38
Limitations .................................................................................................................................... 39
Conclusion .................................................................................................................................... 40
Appendix ....................................................................................................................................... 41
Main Paper Link ....................................................................................................................... 41
Survey Questionnaire ................................................................................................................ 41
Focus Group Transcripts ........................................................................................................... 44
FOCUS GROUP 1............................................................................................................................................................ 44
FOCUS GROUP 2............................................................................................................................................................ 61
References ..................................................................................................................................... 67
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Abstract
This study investigates the impact of uncertainty on online shopping cart abandonment among
young adults. The study also discusses communication strategy facilitators that can be used to
combat the uncertainties. A model based cross cultural research design was employed, and data
was collected from 150 participants using online survey forms. Results revealed that seller
uncertainty plays a very important role in increasing the buyers’ hesitation to checkout as
compared to uncertainty regarding product performance, suggesting that effective feedback
systems help in building trust for mitigating performance uncertainty but seller uncertainty still
remains in exposure. These findings contribute to our understanding of the phenomenon of
Online Shopping Cart Abandonment and have potential implications for professionals especially
digital marketers to boost the checkout rates.
Keywords: uncertainty, online shopping, cart abandonment, communication facilitators, trust
Introduction
E-commerce shopping trends are at their peak and so are the perceived risks and uncertainty
amongst young online consumers, raising the problem of Online Shopping Cart Abandonment
(OSCA) in the e-commerce retail industries and markets. By definition, Shopping Cart
Abandonment refers to the situation where online visitors add products to their virtual shopping
cart but leave the website without completing the purchase. According to Statista, the shopping
order abandonment rate worldwide in 2020 was 88.5% which indicates huge business losses
(Statista, 2021). This research is primarily based on uncapping the relationship between
consumer intention and cart abandonment to investigate the obstacles that demotivate online
consumers to proceed with their final checkouts. Furthermore, this research aims to propose a
framework of strategy facilitators that can help mitigate perceived uncertainty and risks. The
potential issues that will be investigated and studied in this research paper involve seller and
product uncertainty.
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This research is motivated by several factors and aims to explore consumer intention, strategies
to improve consumer experiences, and ways to optimize conversion rates.
Problem Statement
In today's fast-paced digital world, while the boundaries between digital and offline stores are
progressively getting blurred, the phenomenon of the rise in Online Shopping Cart Abandonment
(OSCA) is a dominant challenge faced by digital and online retailers. This process leads to
substantial losses in possible revenues in addition to the likely loss of potentially loyal customers
for marketplaces operating digitally. It is crucial to understand the intricate factors that lead to
such behavior of online consumers. This research paper aims to explore the multifaceted issues
regarding OSCA and uncover the underlying causes with a particular emphasis on the role of
uncertainty perceptions in influencing customer behavior. Within this context, two key sources
of uncertainty are recognized: seller uncertainty and performance uncertainty (Tang & Lin,
2018). More specifically, the following questions need to be addressed to dive deeper into the
selected area:
1. What are the primary reasons behind shopping cart abandonment in online retail?
2. How do uncertainty perceptions influence consumers' decisions to abandon their shopping
carts, and what is their relative impact?
3. What role does trust play in mitigating uncertainty and reducing shopping cart abandonment,
and how can e-commerce platforms build and maintain trust?
4. What are the research advancements and industry and marketing practices to re-engage and
retain abandoned cart customers?
Research Question & Objectives of Research
This research aims to serve as a guiding principle and offer comprehensive insights and practical
solutions to address shopping cart abandonment in the context of e-commerce. The primary
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research question is "How does uncertainty impact online shopping cart abandonment?" The
research work is driven by a clear set of objectives to address the intentions that lead to shopping
cart abandonment. The research also focuses on recommendations and strategies for e-commerce
businesses to retain their customers. The following research objectives will enhance our
understanding of shopping cart abandonment with a focus on unraveling the factors contributing
to OSCA, the role of uncertainty perceptions, tailored communication strategies, and the
significance of trust in online shopping.
1. To identify the primary factors contributing to shopping cart abandonment
2. To examine the influence of distinct uncertainty perceptions, encompassing seller uncertainty
and performance uncertainty, on consumers' tendency to abandon their shopping carts.
3. To assess the key role of communication strategy facilitators in lowering uncertainty and
diminishing shopping cart abandonment rates within the online retail context.
4. To provide adaptive strategies for businesses to re-engage and retain abandoned cart
customers.
These research objectives form the basis of our research, aiming to shed light on a challenge that
continues to shape the future of online retail.
Background and Literature Review
Abandonment/Obstacles:
Seller Uncertainty
Seller Uncertainty refers to the instance when buyers are unsure and unable to assess the true
characteristics of the seller (Wang et al., 2022). This phenomenon or kind of uncertainty is more
active in online, or e-shopping as compared to traditional brick-and-mortar stores (Wang et al.,
2022). According to studies conducted over the past two decades, 75% of total shopping carts are
abandoned after an item is placed in them (Mittal, 2022). Multiple researchers have identified
different factors relating to customers' perceptions of uncertainty. The seller uncertainty about
leniency of return policy, seller popularity, information quality, seller reputation, and the number
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of positive versus negative comments contribute significantly to cart abandonment (Al-Adwan &
Yaseen, 2023). In the context of buyer-seller relationships, the principal-agent perspective can be
applied to characterize sellers as either high-quality or low-quality. The former are the sellers
who are the cherries of the relationship, delivering high-quality products as promised in a timely
manner, while the latter are the sellers who are the lemons, hiding their personal information and
delivering subpar products (Pavlou et al., 2007). Pavlou. et al. (2007) states that the buyer fails to
fully evaluate a product’s characteristics due to sellers’ opportunism and secondly
misrepresentation of products’ characteristics which leads to adverse selection and moral hazard
as consequences (Pavlou. et al, 2007). The physical distance between a seller and buyer further
hinders the true evaluation of a product’s features in an online context. The social cues such as
reading body language and face to face communication and interaction are blocked which makes
it more challenging for buyers to evaluate the traits and opportunism of sellers (Gefen et. al
2003-). This includes factors such as sellers past transactional record, consumer feedback, and
consumer’s own communication with the buyer (Pavlou et al. 2007). The moral hazard issue in
online markets arises from the fact that buyers move first in an online transaction by sending
payment to sellers before goods are shipped, meaning that buyers bear much of the risk while
sellers bear much less (Rice, 2012). As both parties to the transaction will need to expend more
time and energy monitoring the transaction process, uncertainty also suggests a higher
transaction cost. Teo et al.’s (2004) findings suggest that increased behavior uncertainty raises
the transaction cost for both groups of online shoppers. One explanation for this is that customers
are more likely to spend time looking for information about products and stores and observing
internet sellers to make sure their orders are being fulfilled as promised because they are
concerned that the stores will not allow them to return items they have purchased or offer aftersale services. In a study, the concept of imitation, where buyers replicate the online behavior of
others, was studied. The results concluded that, with reference to social commerce, seller-related
uncertainties may not be as pivotal as initially thought (Chen et al., 2021). Instead, buyers are
more influenced by product-related uncertainties (Chen et al., 2021). However, According to Liu
& Arnett (2000), it is still the case, though, that a significant portion of customers abandon their
carts after an online retailer has successfully gained their trust using all the trust-building
strategies previously discussed. This anomaly may be attributed to concerns about security and
privacy that customers may have during the checkout process (Rajamma et al., 2009). Thus, as
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the seller uncertainty increases, so does the risk-averse behavior of potential consumers, which
leads to an increase in cart abandonment (Wang et al., 2022). Therefore, to mitigate seller
uncertainty, e-retailers should focus on providing rapid responses, accurate product descriptions
and demonstrations, and quality assurance to potential buyers (Wang et al., 2022). This will
ensure turning potential buyers into actual buyers and will also help positively impact the etailer's revenue.
H1: Seller uncertainty is negatively related to the intention to checkout.
Product Related Uncertainties and Risk Perception:
As the current research framework has been critiqued, and multiple researchers have introduced
their studies for the same. One such novel perspective categorizes online shopping cart
abandonment (OSCA) into three specific stages in a consumer's journey: exploration, pre-choice,
and post-choice (Mittal, 2023). These stages have unique drivers and characteristics to
emphasize the importance of recognizing the individual drivers of OSCA at each stage (Mittal,
2023). However, this, in turn, calls for stage-specific managerial actions to address this issue
effectively. It is proposed that since consumers are more frequently driven to avoid mistakes than
to maximize utility when making purchases (Murray, 1991), perceived risk has a greater ability
to explain consumer behavior. Risk is frequently seen as a prerequisite for participation,
especially in cases where there is a high cost, and the buyer runs the risk of financial loss. Risk
and the concept of trust are intertwined; as relationships grow and trust grows, we can observe
that for trust to function, perceived risk must be reduced, and that developing trust leads to a
decrease in perceived risk of the transaction or relationship (Mitchell, 1999). Multiple perceived
risks are at influence when a consumer plans to buy, including: financial status, performance of
the products and seller, process of delivery, and privacy and security invasion risks were also
identified by Hogarth, Michaud and Merry (1980). Rajamma et al. (2009) contend that when a
transaction is closing or being checked out, people perceive risk the most because they are more
likely to lose (in terms of credit card information, personal information, etc.) and so risk may be
more intense at this point. As a result, competence and integrity are the most pertinent
informational dimensions gathering because they reflect the reliability of the e-commerce
vendor's information. In terms of product purchases, trust is the conviction that the vendor will
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correctly deliver, fulfill, and maintain its product's integrity. Consumers use trust to determine
whether the information on a website is valid, credible, and accurate (Pavlou & Gefen, 2004).
According to J. Park et al. (2005) it is critical for online retailers to establish a joyful atmosphere
for their customers to shop in which can be achieved with visually attractive product displays, as
happier feelings resulted in happier online experience, lesser perceived risk, and higher buying
intention. Understanding the dynamics of seller uncertainty is important in e-commerce, as it
directly impacts consumer trust and purchasing decisions. Existing literature suggests that
consumers are more prone to shopping cart abandonment when they perceive uncertainty
regarding the 7 credibility and reliability of the seller. Research has also explored the factors
contributing to seller uncertainty, such as unclear return policies, ambiguous product
information, and inconsistent communication. By addressing and mitigating these uncertainties,
businesses can enhance consumer trust and reduce cart abandonment rates.
Performance Uncertainty:
In the frame of Online Shopping Cart Abandonment (OSCA), performance uncertainty refers to
the situation where online consumers are unsure about the effectiveness and performance of
different products (Wang et al., 2022). Factors such as quality, functionality, and reliability of
products are encompassed in PU (Hwang & Youn, 2023). According to Al-Adwan & Yaseen,
2023, between these variables and customers' opinions of performance or product uncertainty,
seller uncertainty serves as a mediator. The decision-making process of e-buyers is significantly
impacted by their uncertain experience regarding the quality or performance of the products they
intend to purchase (Wang et al., 2022). Thus, businesses can positively impact the overall
perception of product performance and quality in the realm of social commerce by addressing
seller-related uncertainties (Al-Adwan & Yaseen, 2023). Enhancing the trustworthiness of sellers
ultimately contributes to reducing mistrust that customers may face when evaluating product
quality and performance (Al-Adwan & Yaseen, 2023). Customers will keep investing resources
in their searches until the value they derive from them outweighs the expense (Money & Crotts,
2003). Customers also manage product-level ambiguity according to their degree of involvement
(Xu et al., 2022). Low-involvement consumers look for approvals when purchasing suggested
items and are therefore influenced by the social proof function of recommendation labels (Xu et
al., 2022). On the contrary, high-involvement consumers look for a sense of assurance when
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opting for said items (Xu et al., 2022). Similarly, Money and Crotts (2003) findings
demonstrated that consumers with a higher risk tolerance look for information from mass media
sources that are dominated by marketers rather than from sources that cater to lower risk profiles.
Here, the decision-making process is influenced by the risk-avoidance function of
recommendation labels (Xu et al., 2022). This addresses performance uncertainty at the product
level, as these consumers rely on the labels to mitigate the perceived risks associated with their
choices. Additionally, uncertainty about product fit can raise the possibility of negative
disconfirmation (Chen et al., 2021). In this case, consumers tend to mimic what others have done
to reduce the risks involved in their purchases associated with acquiring defective products
(Chen et al., 2021). Imitation has been identified as an effective strategy to reduce such negative
disconfirmation, and ultimately enhance buyers' purchase intentions (Chen et al., 2021). Looking
at C. Park & Lee’s (2009) findings consumers' prevailing uncertainty and fear are heightened by
negative electronic word-of-mouth (eWOM) information. When assessing a product's quality,
consumers rely more on extrinsic cues—like the brand name—than on intrinsic cues.
Specifically, consumers' uncertainty about experience goods is increased by the online
environment's incapacity to communicate sensory attributes. This implies that eWOM could
function as a mechanism to mitigate consumer uncertainty, particularly for individuals who are
contemplating the purchase of experience goods. Internet marketers who plan to strategically use
eWOM should therefore do everything in their power to increase the perceived value of online
reviews, especially for experience goods to offset perceived risk (C. Park & Lee, 2009).
Performance Uncertainty can be addressed through clear product descriptions and reviews
(Hwang & Youn, 2023).
Future research endeavors should also explore how livestream shopping and other such methods
can effectively address performance-related uncertainties and enhance purchase intent (Hwang &
Youn, 2023). To sum up, the concept of performance uncertainty in e-commerce revolves around
consumers' concerns regarding the performance and quality of the products they intend to
purchase. Studies have indicated that high levels of performance uncertainty can lead to
hesitations and, ultimately, cart abandonment. Researchers have also explored the impact of
factors like product reviews, ratings, and detailed specifications in alleviating performance
uncertainty. Identifying and addressing these uncertainties can contribute significantly to
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establishing a satisfying online buying environment, and thereby reducing the likelihood of cart
abandonment.
H2: Performance uncertainty is negatively associated with intention to checkout.
Other Inhibitors:
Price
The high price inhibitor strikes when buyers wait for the products to be sold at discounted prices
hence, they prolong their waiting period for process to be dropped, but when prices don’t drop
consumers empty their carts (Li and Chatterjee 2006; Magill 2005; Xia and Monroe 2004). The
shopper's concern regarding the total costs can be linked to their financial status inhibitor. As
online buyer keeps an eye on the total costs before proceeding to checkout hence, they expect
retailers to drop the prices and sell at cheaper rates, yet the total cost of the order could
discourage or prevent customers from checking out and making a payment.
Fun and Entertainment
Experiential aims of procrastinating or adventurous consumers include searching and shopping
for fun and to alleviate boredom (Moe 2003; Wolfinbarger and Gilly 2001). Online shopping and
cart abandonment can act as medium for entertainment or escapism (Mathwick et al. 2001).
Kukar-Kinney and Close (2010) because of their study found out that buyers who are labelled as
experiential shoppers, put their selected items in the shopping cart just for the sake of removing
boredom and enjoyment purposes. These buyers from the beginning do not have the real
intention to buy the product or financially cannot afford the desired items at that time. So, putting
items in the cart gives them the feeling as if they have bought the product (Close and KukarKinney, 2010); Mathwicki Malhotra and Rigdon, 2001; Wolfinbarger and Gilly, 2001). This
stimulation and entertainment can increase marketing effectiveness even prior to any cart use
(Menon and Kahn, 2002). It was further studied and asserted that this website browsing will
continue in the future as it allows online buyers for pastime, to relieve boredom and alleviates
the feelings of joy and entertainment (Luo, 2002).
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Communication Strategy Facilitators:
Effective communication strategies play a key role in reducing cart abandonment. These
strategies can be categorized into the following aspects:
Perceived Effectiveness of Product Description
One of the key communication strategies that can help e-businesses is providing a product
description that effectively communicates essential details to the consumers (Wang et al., 2022).
Researchers have underscored the significance of information quality in reducing seller
uncertainty (Al-Adwan & Yaseen, 2023). This indirectly relates to the effectiveness of product
descriptions (Al-Adwan & Yaseen, 2023). When businesses provide product descriptions and
demonstrations that are comprehensive, accurate, trustworthy, clear, and informative, they
reduce performance uncertainty (Wang et al., 2022). This, in turn, increases effective
communication with customers and reduces obstacles by enhancing customer trust and
confidence in the product (Al-Adwan & Yaseen, 2023). Thus, when buyers are clear about the
features and advantages of a product, they are more likely to finish their purchase (Wang et al.,
2022). The research by Chen et al., 2021, showed a positive relationship between imitation and
purchase behavior which infers that crafting comprehensive and informative product descriptions
is essential as detailed product descriptions can help mitigate product-related uncertainties.
Studies emphasize the importance of recommendation labels in raising the perception of how
effective product descriptions are (Xu et al., 2022). By leveraging the social proof function of
recommendation labels, product descriptions become more persuasive and influential, ultimately
increasing purchase intentions (Xu et al., 2022). Researchers have also discussed the importance
of crafting informative and effective product descriptions during livestream sessions to address
consumer uncertainties and enhance their intent to make a purchase (Hwang & Youn, 2023). The
effectiveness of product descriptions plays a crucial role in shaping purchase decisions and
consumers' perceptions. Literature also highlights that clear, informative, and persuasive product
descriptions positively influence perceived value and reduce uncertainty. Studies have examined
the elements of effective product descriptions, such as clarity and completeness. Analyzing and
enhancing the perceived effectiveness of product descriptions can be a strategic approach to
minimizing cart abandonment and encouraging favorable consumer behavior in the online
marketplace.
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Product diagnosticity removes the obstacle caused by the lack of in-person product inspection
and places complete control over product purchasing in the hands of the consumer. Online
shoppers must rely on limited product representations, so product diagnosticity gives them a true
sense of the product and allows for adequate product evaluation (Pavlou & Gefen, 2004).
Website informativeness is the availability of the relevant information and data available on
websites which a buyer may find useful to make his or her buying decision on a product. This
provides buyers with certain and true information related to sellers’ practices, security and
privacy practices and product descriptions (Luo 2002b). Certain product description via internet
includes texts, vivid images and visual representations to display the characteristics of the
product better. Studies also suggest that feedback systems on online selling platforms would help
to review consumers’ perception on the product. (Kirmani and Rao 2000, Pavlou et al. 2006). Lal
and Sarvary (1999), in their study introduced the idea of digital and non-digital features and
attributes of a product being sold out or advertised in the online environment. Product
information that could be easily and affordably communicated to customers via the internet is
referred to as a digital attribute. IT-enabled solutions hence proved to combat the seller’s
inability to the seller’s ignorance of the product’s actual quality as well as the ability of the
internet interface to more accurately and fully describe the goods.
H3: Perceived effectiveness of product descriptions is negatively related to performance
uncertainty.
Perceived Interactivity
Perceived interactivity is consumers' perceptions of the degree to which an online platform
allows them to engage and interact. Interactivity plays a very crucial role in the context of online
shopping. When consumers observe that they can interact with the online platform, ask
questions, or seek additional information, it makes them feel valued and enhances their overall
shopping experience (Wang et al., 2022). Factors such as return policy leniency and the number
of positive comments can indirectly contribute to enhancing the interactivity and engagement
between sellers and customers (Al Adwan & Yaseen, 2023). This perceived interactivity
cultivates a sense of trust and can reduce perceived risk factors, such as trust risk, and thus leads
to a higher likelihood of completing a purchase and avoiding cart abandonment (Wang et al.,
2022). Research explains and provides insights into the impact of interaction with the seller and
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reviews from other viewers on direct purchase intent in the context of livestream shopping.
Results show that enhancing perceived interactivity within live streams emerges as a promising
strategy to encourage consumer engagement and effectively reduce uncertainties (Hwang &
Youn, 2023). Studies have also demonstrated how recommendation labels affect perceived
interactivity. For low-involvement consumers, these labels enhance the social proof effect,
making the online shopping experience more interactive and engaging (Xu et al., 2022). This
improved interactivity contributes to higher purchase intentions among these consumers (Xu et
al., 2022).
H. Teo et al. (2003) says that a website's level of interactivity is a good indicator of its
attractiveness, as research has shown that this factor may have an impact on how users interact
with websites. A site's level of interactivity is a key factor in turning interested contacts into
engaged customers (H. Teo et al., 2003). Web users may cherish the sense of community,
closeness, and improved sociability and, as a result, develop a more positive view towards the
Web site. Interactivity has been shown to improve the transmission of accessible information by
capturing users' attention, enhancing their engagement, and enriching their experiences (H. Teo
et al., 2003). Using a search engine will make an information request more relevant and increase
the user's perception of the website's value. Moreover, users can obtain independent information
from other users through online forums and chat rooms, and the degree of interactivity available
seems to have a big impact on how well a website helps users make decisions (H. Teo et al.,
2003). After Steuer's (1992) fundamental research, many of the studies were carried out
exploring the effects of online visual display and its procedures and mechanisms. For greater
interactivity and media richness the web-based approaches and techniques have been proved and
shown to increase user’s products experiences overall (Dahan and Srinivasan 2000). Vivid
presentations provide more substantial information with nonverbal language and dynamic visual
cues and through multiple sensory channels (Lim et al. 2000). Interactivity gives consumers an
opportunity to fully investigate and assess the relevant data of primary interest and concern
hence facilitating their learning process (Ariely 2000, Jiang and Benbasat 2005). Jiang and
Benbasat (2007) in their study show that enhanced clarity and interactivity makes product
diagnosis better and giving relevant and required information related to products shows increased
clarity and interactivity.
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The above research indicates that higher levels of perceived interactivity positively correlate with
lower cart abandonment rates. Scholars have explored the impact of interactive features to
understand and optimize perceived interactivity. This can help contribute to a more engaging and
satisfying online shopping experience, ultimately reducing barriers that lead to cart
abandonment. Online businesses can benefit from the interactive culture on the Web, as many
studies have emphasized the significance of two-way online communication between customers
and firms.
H4: Perceived interactivity negatively affects seller uncertainty.
H5: Perceived interactivity negatively affects perceived performance uncertainty.
Perceived Effectiveness of Feedback System
The effectiveness of the feedback system, including reviews, ratings, and testimonials, plays a
meaningful role in reducing hesitation at checkout (Wang et al., 2022). A well-designed and
functional feedback system can empower buyers with insights from past transactions and
experiences, thus potentially increasing their confidence and purchase intentions (Chen et al.,
2021). In a study of 292 participants conducted by Hwang and Youn to find a relationship
between live fashion shopping and traditional brick-and-mortar shopping, a link found was
between consumers' reliance on salespeople's assistance in physical stores and their perception of
two critical sources of product information in livestream shopping: interaction with the seller and
reviews from other viewers. The results showed how livestreaming can alleviate seller
uncertainty and, in turn, boost consumers' intent to make a purchase (Hwang & Youn, 2023).
The study was conducted with a particular focus on the concept of product uncertainty, and
Uncertainty Reduction Theory (URT) was implied (Hwang & Youn, 2023).
Research has also highlighted the importance of multiple product information sources within the
live-stream shopping context (Hwang & Youn, 2023). The effectiveness of the feedback system
may be indirectly influenced by recommendation labels (Xu et al., 2022). High involvement
consumers, seeking a feeling of certainty, may find the feedback system more effective when
recommending items that align with their preferences, thus reducing uncertainty and increasing
purchase intentions (Xu et al., 2022). Research also suggests that stimulating customers to
provide positive comments has a significant impact on reducing seller uncertainty and this aligns
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with the effectiveness of feedback systems in social commerce (Al-Adwan & Yaseen, 2023).
The purchase decision of consumers is instilled with confidence and trust when they see positive
feedback from other buyers (Wang et al., 2022). Therefore, encouraging user feedback and
reviews can contribute to building trust, reducing abandonment, and ultimately mitigating
obstacles that customers may encounter when making purchasing decisions (Al-Adwan &
Yaseen, 2023). Additionally, an effective feedback system can also address social risk factors by
reducing incongruence between individual and others' opinions (Wang et al., 2022). The
presence of numerous reviews suggests the product is widely used which increases purchasing
intent (Park et al., 2007). Public online reputation systems, which enable trading partners to rate
and comment on previous transactions, are a common feature of e-commerce sites. They help
mitigate the information asymmetry in online markets. In essence, public online reputation
systems are an evolution of third-party reporting, which provides users with online access to
specific community members' personal information (Rice, 2012). The discovery that a single low
rating can occasionally carry a greater weight than a single high rating raises the possibility that a
reputational shock will have a greater detrimental effect on prospective customers' or clients'
trust than a positive one (Rice, 2012). Web visitors may easily acquire answers to issues using
conversation tools such as feedback forms and email, saving wasted time and effort from
perusing enormous amounts of generic information (H. Teo et al., 2003). Thus, a well-structured
feedback system can significantly contribute to lowering the cart abandonment rate (Wang et al.,
2022) and this system can serve as a valuable tool in managing uncertainties associated with
product quality and seller credibility (Chen et al., 2021).
The feedback system within an e-commerce platform serves as a crucial mechanism for building
trust and confidence among consumers. Literature reveals that an effective feedback system,
including customer reviews and ratings, can significantly influence purchasing decisions and
mitigate uncertainties. Research has also explored the factors contributing to the perceived
effectiveness of feedback systems, such as authenticity, volume of reviews, and platform
transparency. Examining and enhancing the perceived effectiveness of the feedback system is
integral to addressing consumer concerns and enabling a sense of reliability, thereby reducing
cart abandonment in the online shopping landscape.
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H6: Perceived effectiveness of feedback systems negatively affects perceived seller
uncertainty
H7: Perceived effectiveness of feedback systems negatively affects perceived performance
uncertainty
H8: Perceived effectiveness of the seller’s feedback system negatively moderates the
relationship between perceived effectiveness of feedback systems and performance
uncertainty.
Direction for Future Research:
Researchers have identified the need for e-tailers to adopt more targeted and effective strategies
to prevent online shopping cart abandonment (Mittal, 2023). Industry-recommended strategies,
such as sending targeted emails with coupons to entice abandoned cart users back, are mentioned
in the paper by Mittal, 2023. However, the key to addressing the OSCA issue lies in
understanding the experiences of web page searching and e-tailer features that deter consumers
from completing their purchases (Mittal, 2023). It is important to identify the stage in the
shopper's journey at which cart abandonment takes place (Mittal, 2023). Clickstream data can
naturally reveal the stage at which cart abandonment occurs, but academic researchers often
overlook this valuable information (Mittal, 2023). It is also essential to emphasize the need for
evolving measurement methods to match the theoretical basis of this phenomenon in future
(Mittal, 2022). Researchers have also addressed the issue of OSCA in the context of the postdecision-making stage of online shopping. The research by Jiang et al., 2021, suggests that
sorting products in ascending and descending chronological order after adding them to the
shopping cart can mitigate abandonment behavior. It demonstrates that the default order of
products in shopping carts (descending order of addition time) plays a crucial role (Jiang et al.,
2021). When sorted in ascending order, it was observed that choice overload significantly
impacted abandonment behavior (Jiang et al., 2021). This behavior is due to reasons such as
forgetfulness and shopping cart page rendering (Jiang et al., 2021). The study of future literature
review yielded some interesting observations about OSCA such as dimensional impact of
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escapism on e-cart abandonment and role of augmented reality technology as a potential
solution.
The research work by (Mazhar et al., 2023) supports the theoretical integration of online buying
behaviors (OBBT) and consumer motivations (UGT) and emphasizes the significance of
comprehending the ways in which these behaviors interact to impact e-cart abandonment. The
study also casts doubt on the notion that abandoning a cart is invariably prevented by optimism,
demonstrating that abandonment decisions can be influenced by elements such as online
information searches too.
The study by (Sun et al., 2022) sheds light on the transformative potential of augmented reality
in mitigating product uncertainty, a substantial obstacle in the online retail environment. The
findings underscore the importance of considering factors like product involvement, sensory
richness, and self-brand connection when developing strategies to reduce uncertainty and
enhance the overall shopping experience. More future research on this may explore how
augmented reality can be practically harnessed to address consumer behavior and reduce cart
abandonment in e-commerce.
Theoretical Framework
Model: 01
17
Model: 02
Research Methodology
Procedures and Participants:
Our research consisted of both quantitative and qualitative research methods as we conducted an
online survey and two focus groups. Moreover, our research was cross-sectional as it was
conducted at a single point in time.
The quantitative approach employed in this study entailed instructing participants to complete an
online questionnaire, which was distributed to a random selection of individuals who utilize
online shopping platforms to purchase various products. The survey included questions regarding
demographics (age, gender, education level and monthly household income) and our constructs
relating to the respondents’ intention to checkout.
These participants were prompted to respond only if they meet specific criteria: (1) they have
expressed interest in certain items, gathered information about them, and placed them in their
virtual shopping cart within the past week without completing the purchase; and (2) they have
never made a prior purchase from the seller of these items. To aid participants in recalling
information about the specific traders and products while completing the online questionnaire,
18
they will be instructed to check their accounts and reassess the items entered in their shopping
carts.
The number of responses achieved was 150. The sampling technique applied was a mix of both
convenient and snow-ball sampling. Convenience sampling was used due to short availability of
time and ease, while the snowball method was used to spread our online survey forward so as to
gain maximum respondents. The responses were collected on an online Google form which was
circulated through social media (WhatsApp, Facebook, Instagram and LinkedIn).
The sample encompasses both males and females who engage in online shopping but hesitate to
purchase items they have added to their virtual shopping carts. This sample encompasses
individuals with educational backgrounds ranging from completing middle school to holding
college degrees, university graduate degrees, or master's degrees. We also inquired about
participants' monthly income levels, and assessed average age and online shopping frequency.
Gender
Cumulative
Frequency
Valid
Male
Percent
Valid Percent
Percent
50
33.3
33.3
33.3
Female
100
66.7
66.7
100.0
Total
150
100.0
100.0
Frequency of male was 50 and for females it was 100. The percentages show that 33.3% were
males and 66.7% were females.
Age
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
18-21
99
66.0
66.0
66.0
22-25
51
34.0
34.0
100.0
Total
150
100.0
100.0
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The data is distributed as follows: 99 respondents fell into the age group of 18-21 and the
remaining 51 fell into the age bracket of 22-25. The percentages show that 66% of the
participants were in the range of 18-21 and the remaining 34% were in the bracket of 22-25.
Monthly Household Income
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
20000-50000
18
12.0
12.0
12.0
50001-100000
18
12.0
12.0
24.0
100001-200000
44
29.3
29.3
53.3
Above 200000
70
46.7
46.7
100.0
150
100.0
100.0
Total
The monthly income can be interpreted as follows that 18 respondents fit into the earning bracket
of 20,000 to 50,000 with the percentage of 12%. The other 18 fell into the range of 50,001 to
100,000 representing 12%. 44 respondents fell into the range of 100,001 to 200,000 representing
29.3% and the remaining 70 respondents majorly fit into the range of above 200,000 which
represents the highest percentage 46.7%. It can be interpreted that nearly 50% of the respondents
belonged to the upper class earning more than 200,000 rupees.
Current Education Level
Cumulative
Frequency
Valid
High School
Undergraduate
Graduate
Total
Percent
Valid Percent
Percent
12
8.0
8.0
8.0
126
84.0
84.0
92.0
12
8.0
8.0
100.0
150
100.0
100.0
It can be interpreted that 12 respondents belonged to high school representing 8% of the sample.
126 respondents are undergraduate students representing 84% of the sample. The remaining 12
20
respondents are at graduate level which also represents 12% of the sample. It can further be
interpreted that the majority of the participants are undergraduate students.
Measurements:
Participants were directed to revisit their virtual shopping carts, single out the distinct items they
have been hesitant to buy in the past week, and determine the trader. Subsequently, they were
asked to evaluate the online retailer in terms of perceived interactivity, the perceived
effectiveness of product descriptions, and the perceived effectiveness of feedback systems.
Following this assessment, participants evaluated their uncertainty concerning the item and
trader and, ultimately, expressed their intention to proceed with the purchase. Participants
provided responses to all measurement items on 7-point Likert scales, with anchors ranging from
strongly disagree (1) to strongly agree (7), except for the motive to proceed with the purchase,
for which they were asked to specify a percentage to indicate the likelihood of completing the
purchase.
Furthermore, the survey was piloted amongst 10 university students and any required
improvement was made based on their information.
Control Variables:
The variables chosen for this research included perceived effectiveness of product description,
perceived effectiveness of feedback system, and interactivity. The two main variables relating to
the three previously mentioned are seller uncertainty and performance uncertainty which will
track the influence of the variables and so create our first model. Further, for our second model,
the variables will branch out to the outcome variable intention to checkout which will be
controlled using variables age, education, gender, income, and product involvement.
Analytical Technique:
For our quantitative data analysis, we made use of the SPSS software and its tests which
included reliability tests, descriptive statistics, factor analysis, Pearson correlation analysis,
independent t-test, and multiple linear regression, in order to calculate the significance of the
relationships between our predictors and outcomes and to support our hypothesis.
21
Data Analysis & Results
Factor analysis
Total Variance Explained:
The total variance explained shows that eight components of this research study explain 65.066%
(greater than the threshold of 60%) of total variance in the data. The eigenvalues of the first five
factors are greater than 1 which shows that selected components of the collected dataset are
doing a good job in summarizing the key features of the data.
22
Scree Plot
The scree plot output also indicates that we have 5 principal components and the graph starts
flattening beyond the 8th factor. This is because the rest of the components have very small
eigenvalues.
KMO and Bartlett’s Test:
For Factor Analysis, the value of KMO should be greater than 0.6 as values below this show that
sampling is not sufficient. Our value for KMO is 0.824 which is greater than 0.6 and Bartlett’s
Test is significant. Hence, the data set is appropriate for factor analysis.
23
Harmans Single Factor Test
A single factor is explaining 24.977% of total variance which is far less than the threshold of
50%. Thus, we conclude that there is no threat of common method bias.
Reliability
To test the reliability of results we ran an internal consistency reliability test through Cronbach’s
Alpha. Through this test we wanted to determine the consistency of the instrument used in our
survey questionnaire and to determine the consistency in results we have set the threshold at >
0.7.
Thus, all the variable instruments that show a Cronbach’s alpha value greater than the cut-off
range of 0.70 are reliable (Singh and Verma, 2017). As shown in the table above, all our
variables show values > 0.7 hence, our data is proven consistent and reliable .
24
Correlation
The relationship between product involvement and interactivity was investigated using Pearson
correlation coefficient. It showed a weak positive correlation between the two variables which was
statistically significant [r=0.162, n=150, p<0.05]. Product involvement’s relationship with
perceived effectiveness of product description [r=0.311, n=150, p<0.05] and feedback systems
[r=0.376, n=150, p<0.05] showed medium positive correlations respectively. Its relationship with
perceived product risk of online shopping [r=0.272, n=150, p<0.05] and perceived final risk
[r=0.165, n=150, p<0.05] showed weak positive correlations.
The relationship between seller uncertainty and performance uncertainty was tested using Pearson
correlation coefficient. It showed a strong positive correlation between the two [r=0.601, n=150,
p<0.05]. Seller uncertainty’s relationship between product description showed a weak negative
correlation which was statistically significant [r=-0.166, n=150, p<0.05]. Its relationship between
intention to checkout also showed a negative but medium correlation [r=-0.351, n=150, p<0.05].
25
Its relationship with perceived product risk [r=0.482, n=150, p<0.05] and financial risk [r=0.489,
n=150, p<0.05] showed a positive medium correlation while with overall risk showed a weak
positive correlation [r=0.249, n=150, p<0.05].
The relationship between performance uncertainty and other variables was also tested using the
Pearson coefficient correlation. Its relationship with perceived effectiveness of feedback systems
showed a weak negative correlation which was statistically significant [r=-0.199, n=150, p<0.05].
With intention to checkout it also showed a weak negative correlation [r=-0.288, n=150, p<0.05]
but showed medium positive correlations with perceived product risk [r=0.491, n=150, p<0.05]
and perceived financial risk [r=0.376, n=150, p<0.05] and a weak positive correlation with overall
risk [r=0.254, n=150, p<0.05].
The relationship between perceived effectiveness of interactivity and perceived effectiveness of
product description showed a medium positive correlation [r=0.478, n=150, p<0.05] while its
relationship with perceived effectiveness of feedback systems showed a strong positive
relationship [r=0.528, n=150, p<0.05]. The relationship between interactivity and intention to
checkout showed a medium positive correlation [r=0.32, n=150, p<0.05].
Product description and feedback systems showed a medium positive correlation [r=0.458, n=150,
p<0.05] and a small positive correlation between product description and intention to checkout
[r=0.269, n=150, p<0.05]. It also showed a small negative correlation between it in overall risk
[r=-0.258, n=150, p<0.05].
The relationship between perceived effectiveness of feedback systems and intention to checkout
showed a medium positive correlation which was statistically significant [r=0.386, n=150,
p<0.05].
Intention to checkout’s correlation with perceived product risk showed a medium negative
correlation [r=-0.391, n=150, p<0.05], as well as with perceived financial risk [r=-0.32, n=150,
p<0.05].
Perceived product risk showed a strong positive correlation with perceived financial risk [r=0.726,
n=150, p<0.05] and a weak positive correlation with overall risk [r=0.273, n=150, p<0.05].
26
Perceived financial risk and overall risk showed a weak positive correlation which was statistically
significant [r=0.281, n=150, p<0.05].
Independent T Test (Non-Parametric Mann Whitney Test)
An independent T test was conducted to observe the difference in means between our control
variable risk perception and our outcome variable intention to checkout. The questionnaire
design for risk perception involved two questions on a likert scale and third on a scale of 1100%, therefore median values were found for the three questions of risk perception (product
risk, financial risk, overall perceived risk). Two groups; below the median value (low risk) and
above the median value (high risk), were formed. Thus, risk perception was categorized and then
the difference in means with “intention to checkout” was observed.
1. For comparing the means between RP1MEDIAN (the categorical variable in our study
with two categories; group 1 represents participants with low product risk and group 2
represents participants with high product risk), with Intention to checkout.
An independent sample T test was conducted to determine if there was a difference in intention
to checkout between people with low product risk and people with high product risk. The
intention to checkout was found to be more in people with low product risk (M=63.6117, SD=
22.50762) than people with high product risk (M=51.6383, SD=25.77530), t(148) = 2.886, p =
0.004. Since P value is less than 0.05 level, the result shows statistically significant difference
27
between two individual groups on the output. The magnitude of difference in the means was on
the higher end of small effect size (Eta squared = 0.053).
2. For comparing the means between RP2MEDIAN (the categorical variable in our study
with two categories; group 1 represents participants with low financial risk and group 2
represents participants with high financial risk), with Intention to checkout.
An independent sample T test was conducted to determine if there was a difference in intention
to checkout between people with low financial risk and people with high financial risk. The
intention to checkout was found to be more in people with low financial risk (M=64.4149, SD =
23.85864) than people with high financial risk (M=52.2143, SD=22.84232), t(148) = 3.077, p =
0.002. Since P value is less than 0.05 level, the result shows statistically significanct difference
between two individual groups on the output. The magnitude of difference in the means was
moderate (eta squared = 0.06).
3. For comparing the means between RP3MEDIAN (the categorical variable in our study
with two categories; group 1 represents participants with overall low risk perception and
group 2 represents participants with overall high risk perception), with Intention to
checkout.
28
An independent sample T test was conducted to determine if there was a difference in intention
to checkout between people with overall low risk perception and people with overall high-risk
perception. The intention to checkout was found to be more in people with overall low perceived
risk (M=61.5556, SD = 21.74396) than people with overall high perceived risk (M=57.8696,
SD= 26.71468), t(130.956) = 0.916, p = 0.36. Since P value is greater than 0.05 level, the result
was not significant. The magnitude of difference in the means was found to be very small (eta
squared = 0.005).
Multiple Linear Regression Analysis
H1: Seller uncertainty is negatively related to the intention to checkout.
H2: Performance uncertainty is negatively associated with intention to checkout.
29
Intention to Checkout=92.897-5.89*(Seller Uncertainty)-2.238(Performance Uncertainty)
Multiple linear regression was used to develop a model for predicting influences of seller
uncertainty and performance uncertainty on intention to checkout. The two predictors account for
13% of the variance, F(2, 147)=11.214, p<0.05, R2=0.132. Additionally, all VIFs were <5 and
hence, there should be no issue of multicollinearity.
Intention to checkout was significantly associated with seller uncertainty (β= -0.279, t=-2.901,
p<0.05), but the relationship between intention to checkout and performance uncertainty was
statistically insignificant (β= -0.12, t=-1.248, ns).
Hence H1 was supported that seller uncertainty is negatively related to the intention to checkout
while H2 was not as performance uncertainty showed no significant relation with intention to
checkout.
30
H3: Perceived effectiveness of product descriptions is negatively related to performance
uncertainty.
H5: Perceived interactivity negatively affects perceived performance uncertainty.
H7: Perceived effectiveness of feedback systems negatively affects perceived performance
uncertainty
31
Performance Uncertainty=5.095-0.247*(Feedback Systems)+0.099*(Product Description)0.017*(Interactivity)
Multiple linear regression was also used to develop a model for predicting influences of
perceived effectiveness of product description, interactivity and feedback systems on
performance uncertainty. The three predictors account for 5% of the variance, F(3, 146)=2.56,
p=0.057, R2=0.05. Additionally, all VIFs were <5 and hence, there should be no issue of
multicollinearity.
Performance uncertainty was significantly associated with perceived effectiveness of feedback
systems (β= -0.244, t=-2.473, p<0.05), but the relationships between performance uncertainty and
product description and interactivity were statistically insignificant (β= -0.12, t=1.252, ns) (β=0.17, t=-0.172, ns).
Therefore, H3 and H5 were not supported while H7 was supported.
H4: Perceived interactivity negatively affects seller uncertainty.
H6: Perceived effectiveness of feedback systems negatively affects perceived seller
uncertainty
32
Seller Uncertainty=4.561-0.018*(Feedback Systems)-0.018*(Interactivity)
Multiple linear regression was also used to develop a model for predicting influences of
perceived effectiveness of product description, interactivity and feedback systems on seller
uncertainty. The three predictors account for 2.4% of the variance, F(2, 147)=1.775, p=0.173,
R2=0.024. Additionally all VIFs were <5 and hence, there should be no issue of
multicollinearity.
Seller uncertainty had negative relationships with both feedback systems (β= -0.18, t=-0.208, ns)
and interactivity (β=-0.101, t=-1.481, ns) but these were also statistically insignificant. Hence, H4
and H6 are not supported.
In summary, hypotheses H1, H7 are supported, while H2, H3, H4, H5, and H6 were not supported
based on the results of the multiple linear regression analyses. Additionally, the explained
variances (R2) for some models are relatively low, indicating that there might be other factors
influencing the relationships that were not considered in our study.
Moderation Analysis
H8: Seller Uncertainty negatively moderates the relationship between Perceived Effectiveness of
Feedback System and Performance Uncertainty.
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FOR LOW SU: PU=2.2429+0.144FS
FOR HIGH SU: PU=2.2429−0.144FS
The study aimed to explore the moderating role of perceived effectiveness of the seller's
feedback system (SU) on the relationship between perceived effectiveness of feedback systems
(FS) and performance uncertainty (PU). The findings suggest a significant moderation effect.
For the low SU condition (low seller uncertainty), there is a substantial and statistically
significant negative relationship between feedback system effectiveness (FS) and performance
uncertainty (PU) (b = -0.144, t = -7.606, p = 0.000). This indicates that when seller uncertainty is
low, the impact of feedback system effectiveness on performance uncertainty is significantly
negative.
Conversely, in the high SU condition (high seller uncertainty), the relationship between feedback
system effectiveness (FS) and performance uncertainty (PU) is not statistically significant (b = 0.144, t = -1.215, p = 0.226). This suggests that when seller uncertainty is high, the relationship
between feedback system effectiveness (FS) and performance uncertainty (PU) is not significant.
The results provide support for Hypothesis 8, indicating that seller uncertainty (SU) negatively
moderates the relationship between feedback system effectiveness (FS) and performance
uncertainty (PU). This is in accordance with the result of the original paper we followed.
Discussions
Our research aims to understand the impact of uncertainty perceptions on online shopping cart
abandonment and to understand the effectiveness of three communication strategies; Product
Descriptions, Feedback Systems, and Interactivity, in reducing it.
Our primary knowledge leads us to believe that buyers hesitate to go ahead with their purchases
and abandon their shopping carts due to uncertainty perceptions.
34
While we expected both seller uncertainty and performance uncertainty to be at play, the data
suggests that intention to checkout is specifically deterred by seller uncertainty. Trust of buyers
in the seller plays a crucial role in the intention to checkout.
However, the relationship between performance uncertainty and intention to checkout was not
supported. A possible explanation for this could be that buyers might rely on other trust signals,
such as seller reputation, product ratings, or reviews, to make their purchasing decisions and
these factors might overshadow the impact of performance uncertainty on SCA. Its influence
may also vary according to different product types and so, should not be completely discredited.
Our study focused on Daraz, a Pakistani online shopping platform and another reason could be
that the young adults we collected data from, trust the product performances of Daraz. The
sample size was also limited to 150 participants and convenient sampling was used which makes
the result difficult to generalize.
Therefore, we suggest that future studies look at how much product-level uncertainty influences
SCA behavior in various scenarios aimed at various commodities.
Our hypothesis regarding relationships between the three communication strategies with seller
uncertainty and performance uncertainty showed interesting results.
The influence of perceived effectiveness of feedback systems on performance uncertainty was
supported, demonstrating the significance of rich detail and comprehensive descriptive product
information in reducing product-level uncertainty. However, it was not supported against seller
uncertainty, this may be because buyers may not regard the seller’s input about their product as
reliable enough to remove their uncertainty. This also means that if buyers are unsure about the
online sellers, they will not trust their feedback systems either.
However, perceived effectiveness of interactivity was not found to have significant influence
over the uncertainties. We estimate that some customers might not rely on clarifications by the
seller to understand how the product will function in real-world situations, particularly when
detailed product descriptions and peer reviews are easily accessible. Another reason could be that
if buyers do not trust sellers, then interacting with them about products will not make a
difference about product uncertainty or seller uncertainty.
35
According to the paper we followed for our research by Heng Tang & Xiaowan Lin, their
hypothesis regarding the negative relationship between seller uncertainty and intention to checkout
has been supported. Their hypothesis regarding the relationship between perceived effectiveness
of feedback systems and performance uncertainty have been proven significant as well. These two
hypotheses were supported in our model and in the context of Pakistani culture as well.
However, the original paper was able to prove significant relationships between performance
uncertainty and intention to checkout, product description and performance uncertainty,
interactivity and seller uncertainty, and feedback systems and seller uncertainty, which we were
unable to prove significant with our data.
Our results helped us conclude that Perceived Effectiveness of Feedback System could be the
most effective factor that could help reduce performance uncertainty and to some extent, seller
uncertainty, as proven in the original paper. The other two factors namely, Perceived Interactiviy
and Perceived Effectiveness of Product Descriptions, showed no promising results.
Furthermore, the hypothesis regarding the moderating relationship between Perceived
Effectiveness of Feedback System and performance uncertainty was proven statistically
significant. This further supports our claim that Feedback System stands as the most useful
mitigator of uncertainties and so can be adopted by online retailers in reducing Online Shopping
Cart Abandonment and optimizing the cart rates.
Minor Methodology
To further bolster our research study, we made use of two focus groups to use as qualitative data.
Our first focus group consisted of 5 participants (two 18-year-old males at college level and three
20-22-year-old females at university level) while our second consisted of 6 participants (six 2022-year-old females at university level). The two focus groups were conducted in an online
setting to accommodate all the participants. The groups were moderated and assisted by our
group members and our guide consisted of questions that started off with a general outlook of the
36
country’s economic situation and its impact on shopping and moved gradually towards online
shopping experiences on Daraz and reasons behind cart abandonment.
Analysis - Focus Groups
We found several key themes highlighted in our focus group. First, we found that concerning the
effect of the country’s economic situation and inflation on shopping patterns, all respondents
claimed that due to high inflation, their spending patterns have reduced. The respondents claimed
that the high prices have discouraged them to purchase items, especially luxury items, and
expressed a need for more budget-friendly options.
Regarding our question about their online shopping experiences on Daraz, some respondents had
positive experiences due to convenience and variety, while the majority faced issues like delayed
deliveries and product quality discrepancies. For example, for one respondent their experience
has been a positive one due to the availability of products she could not find elsewhere, but
another respondent shared an unpleasant experience where she received a product completely
different from that which was displayed on the website.
Next, while asking about the factors that influenced the amount of trust for the sellers in the
respondents we led them towards our key questions regarding seller uncertainty and performance
uncertainty. Trust was a significant factor for every respondent and it was influenced by the
availability of comprehensive product information, transparent seller communication, and
authentic customer reviews. Each respondent accepted that without having proper trust in the
seller and the product’s performance, they would not go ahead with their purchase.
However, the focus group also helped us identify that their intention to not abandon their online
shopping carts was not only influenced by seller and performance uncertainty, trust and security,
but also by hedonic purposes. A few respondents claimed that their online shopping carts served
as bookmarks and wish lists and that they are always aware when they add their carts that they
will not go ahead with the purchase.
37
When asked about improvements that could be adopted to mitigate their uncertainties,
participants suggested more accurate product descriptions, better customer service, and more
secure payment options so as to reduce the financial security risk.
Each theme represents a blend of diverse experiences and perspectives, highlighting the
complexity of online shopping dynamics in Pakistan and how seller and performance uncertainty
along with other risks and reasons lead to online shopping cart abandonment.
Managerial implications
This study holds several key practical implications that online retailers can use to their best and
create sites which will benefit them and the potential consumers. Testing our 5 predictor
continuous variables we lead to the conclusion that most significant factors that influence our
outcome variable “consumers’ intention to checkout '' are: seller uncertainty, product performance
uncertainty, and perceived effectiveness of feedback systems. Retailers can opt for best strategies
to make these factors efficient so that the probability to checkout can be optimized. As we
concluded that seller interactivity can help to reduce seller uncertainties which eventually can have
a significant effect on the intention to checkout so retailers can implement live chat support, user
friendly website designs, FAQ section, email communication etc. secondly, we have perceived
effectiveness of feedback system and its positive correlation with the intention to checkout. It
involves factors such as: consistency of feedback, timely feedback, detailed comment box,
anonymous feedback options, relevance, clarity and specificity in responses from the seller’s end.
To make the system more effective, retailers can incorporate personalize feedback requests, multichannel approach, and implement a feedback loop. All this will foster better communication and
engagement with the consumers where you would make their suggestions welcomed and
actionable . We also concluded that the moderating relationship between Effective feedback
system, seller uncertainty and performance uncertainty which infers that if feedback system
variable is moderated then it will have a significantly positive impact on mitigating the seller and
product performance risk for the consumers.
38
Limitations
This study has a number of limitations that have scope for future research. One of the most
prominent limitations is the generalization of the results from a chosen convenient sample and
imposing the concluded results on to the whole population of Pakistan. Whereas that is not how
results should be generalized. The subjectivity and specificity must be present because one result
can not be the same for all. We did not cater to the broader demographics in terms of targeting the
population outside Karachi. So, definitely the amount of data we could collect was small. Another
limitation was the difference in the cross cultural values regarding online shopping. As our original
paper was designed within the Chinese context, whereas our paper was in the Pakistani context.
This cross cultural difference could have influenced the results of the original paper and our actual
paper. Thus, the concluded results cannot explain the reasons why consumers would abandon their
carts. Secondly, it was not necessary for all participants who do shop online to know how online
shopping procedures really work. Their lack of knowledge of other online platforms could have
also limited the accurate results. Thirdly, we only use Daraz as the online shopping platform;
whereas, this should not have been the case. The limitation of only one website must have limited
their other experiences with other shopping platforms. Fourthly, we did not consider the
psychological factors such as Decision-Making Complexity where online purchase decisions can
be influenced by various psychological factors that are challenging to capture comprehensively in
a single study and emotional States that could have affected their responses.
Future studies can overcome this by actually studying the intention to checkout with the help of
different theoretical perspectives. As it's an emerging phenomenon with limited knowledge
amongst consumers, especially in Pakistani context, the researchers can use different approaches
to study the concept in depth.
39
Conclusion
This research aimed to discover the potential factors that influences consumers’ online shopping
behavior specifically targeting their intention to checkout with the added item to their carts. And
we can conclude after analyzing all the results that there were 3 variables: seller uncertainty,
perceived effectiveness of the feedback system and performance uncertainty, which proved to be
significant through the Pearson correlation test. While 1 continuous l variable “product perceived
risk” was proven to be positively significant to intention to checkout via T-independent test. It can
be concluded that consumers would not financially invest in the online products which have higher
perceived risk associated with them. As people would fear the loss of value of money and no
product performance as per expected. So, the probability of intention to checkout will reduce if
greater financial and performance risk is linked. While other continuous variables: seller
uncertainty and performance uncertainty had moderate and strong negative correlation with the
intention to checkout. They were not supported as the main predictor of our continuous outcome
variable intention to checkout. Although performance and seller uncertainty are strongly and
positively correlated together implying if the seller is untrusted and unethical then there will be
higher levels of concerns among the consumers related to the performance of the product whether
it would coincide with their expectations or not. We can infer from this that the probability to make
the final checkout will be indirectly affected. The negative correlation can be explained by
consumers’ little concern for the seller who is selling the product. They might be more focused on
the quality of the product shown rather than investigating for the seller’s description.
Hence, this study provides substantial practical and theoretical implications as it can provide online
retailers, marketers and sellers with a better understanding of what are key factors that would
increase consumers’ intention to checkout.
40
Appendix
Main Paper Link
https://link.springer.com/article/10.1007/s12525-018-0313-6
Survey Questionnaire
1. Age brackets:
● 18 -21
● 22-25
2. Gender:
● Male
● Female
3. Current Educational Level:
● High School
● Undergraduate
● Graduate
4. Income Brackets:
● 20,000-50,000
● 50,001-100,000
● 100,001-200,000
● Above 200,000
Participants are requested to fill out the following questions keeping in mind your recent
online shopping activity from Daraz where they did not check out with a certain product.
Product and Risk Perception: [7-point Likert scales with anchors ranging from strongly
disagree (1) to strongly agree (7) ]
1. The product was important to me
41
2. The product was needed to me.
3. I think the product was cost-effective.
4. Purchasing from Daraz involved more product risk (i.e., defective/non-working product) when
compared with more traditional ways of shopping
5. Purchasing from Daraz involved more financial risk (i.e. fraud, difficulty returning) when
compared with more traditional ways of shopping.
6. On a scale of 2-100%, How would you rate your overall perception of risk from Daraz?
Seller Uncertainty [7-point Likert scales with anchors ranging from strongly disagree (1) to
strongly agree (7) ]
1. I was confident that the seller truthfully described his or her selling practices (reverse).
2. I felt that the seller may have misrepresented the product in his or her website description.
3. I was doubtful that the seller would deliver this product as promised in a timely manner.
4. I was concerned that the seller may renege on our agreement.
5. I was afraid that the seller could attempt to defraud me.
6. I was certain that the seller would follow through on all of his or her promises and guarantees
(reverse).
7. I felt that dealing with the seller involved a high degree of uncertainty about his/her quality.
Performance Uncertainty [7-point Likert scales with anchors ranging from strongly disagree
(1) to strongly agree (7) ]
1. I was certain that the product would perform as I expected it to perform.
2. I was afraid that the product may not perform as I thought it would.
3. I was concerned that the product would perform differently as I expected.
4. I felt that purchasing the product involved a high degree of uncertainty about the product's
actual quality.
Perceived Interactivity [7-point Likert scales with anchors ranging from strongly disagree (1) to
strongly agree (7) ]
1. I felt that I had a lot of control over my experience at the seller’s website.
2. While I was on the seller’s website, I could choose freely what I wanted to see.
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3. The seller facilitated two-way communication between him/herself and visitors.
4. The seller gave visitors the opportunity to talk to him/her.
5. This seller responded to my questions very quickly.
6. I was able to get information from this seller very rapidly.
Perceived Effectiveness of Product Description [7-point Likert scales with anchors ranging
from strongly disagree (1) to strongly agree (7) ]
1. The media descriptions on Daraz (including text, pictures, or video) were detailed.
2. The media descriptions on Daraz (including text, pictures, or video) were comprehensive and
thorough.
3. The media descriptions on Daraz (including text, pictures, or video) were helpful in
familiarising me with the product.
4. The media descriptions on Daraz (including text, pictures, or video) were helpful for me to
understand the product.
5. Overall, the media descriptions on the website (including text, pictures, or video) were
effective.
Perceived Effectiveness of Feedback Systems [7-point Likert scales with anchors ranging from
strongly disagree (1) to strongly agree (7) ]
1. A considerable amount of useful feedback information about the transaction history is
available.
2. I felt confident that the Ratings & Feedback information of Daraz was unselective.
3. Feedback information of the product had a rich format.
4. I was able to assess the quality of the feedback and ratings.
Intention to Checkout (asked to specify a percentage to indicate the probability of checkout)
1. All things considered, and on a scale from 0 to 100%, what is the probability that you will
purchase this product online from this seller?
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Focus Group Transcripts
FOCUS GROUP 1
Moderator – Shezil Naseeruddin
Assistant Moderator - Bizzal Farhan
A – Azam Nizamuddin
F – Fizza Rizvi
O – Omer Khawaja
Z – Zunaira Jamil
Zo – Zoha Batool
Transcript
M: Please introduce yourself.
O: My name is Omer Khawaja, I’m 18 years old and in Nixor College.
M: OK anyone else?
A: I would like to volunteer to introduce myself.
M: OK, go ahead Azam.
A: OK, my name is Azam Nizamuddin. I am currently studying at Cedar College and at this
moment in the second year of my academic year, I'm in the second year of college. And I am 19
years of age and I am delighted and enthralled to contribute to this focus group. Thank you.
M: Thank you.
AM: Zunaira, can you please introduce yourself?
Z: Hello, I'm Zunaira. I'm currently in my third year at IBA, BBA.
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M: Thank you, Zunaira. And Zoha?
Zo: Hello, I'm Zoha and I'm also a student at IBA in the BBA program and I am 23 years old.
M: Thank you. OK. So, I'll start with the questions. Omer, I'll start with you. What are your
thoughts on the current economic situation of Pakistan? Has it impacted your shopping habits?
O: I think the position I'm in hasn't really affected me because I'm not earning and I'm not the
one paying for the goods. It's my parents so, I have not experienced such a big change in my
spending patterns. Especially in online spending because I don't order that much and when I
really do so, I would say the overall impact on my spending pattern is almost nonexistent.
M: OK, thank you Omer. And Azam, any thoughts?
A: Well, it has impacted my spending patterns because obviously even though I'm not a person
who's earning for himself, but still, ever since the economic situation has taken place in Pakistan.
You know, we have to see it over a wide perspective. We have to understand that we're spending
our parents' money and like, even though we're not earning for ourselves, you know, we have to
be careful with our spending patterns. So yeah, I have reduced some of my spending.
M: OK. Thank you Azam. And Zoha, do you have anything to add?
Zo: Yes, in Pakistan, as we know inflation has increased and the pocket money that I was
getting, I used to get a lot of things in that money like 3-4 years back. But even though my
pocket money has increased, but only by like 5000, and it did not increase with the rate of
inflation. And there are still certain things that I was able to afford more way back then,
considering now I just cannot afford everything I want just like I did before.
M: OK. Thank you and Zunaira?
Z: As Zoha said, it's true my pocket money also increased, but not with inflation. But because of
inflation, I cannot buy so many things which are used to before. That's it.
M: OK. Thanks. And Fizza, are you here?
F: Hi
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M: Hello, Fizza we're asking- Fizza can you give a brief introduction please?
F: Okay so, I’m Fizza Rizvi and – you are already aware.
M: OK. Tell us, can you tell us about how the current economic situation has affected your
shopping habits?
F: Ok so, I think that now we’re just fulfilling basic necessities. All other things have gone down
the priority list which include fun activities, clothes etc. And specially our fees has also increased
by a lot so I don’t think I’m ever in the mood to buy anymore. Even if I find something that I
like, I postpone it. So yeah.
M: OK, great. Thanks. OK. So we'll move on. To the next question. So can any of you share any
memorable experiences whether positive or negative when shopping online?
Zo: Yes, when there are sales like obviously that is a thing especially on Daraz when you have
added something to your cart and then you're waiting for that sale and then suddenly the price
decreases and you just get it. So obviously that is a kind of positive experience.
M: OK, great. Thank you. And anyone else.
O: Yes. I would also like to share a memorable experience, but it is a negative experience.
Recently I ordered a jacket from Daraz and just a few days before it was going to arrive, I got the
message, the notification that my package was on the way, so I was also excited. The very day it
was said to be shipped, I got a call and it was an automated message telling me that my order has
been cancelled and there is some sort of compensation amount put into my account and then and
that I have a week to spend it and I checked there was no compensation amount in my account
and apart from that. Daraz has some, I think, a bit of malfunction in its software because right
after I got the call that my order has been cancelled, they gave me another notification that the
rider is on his way to your house with your package. So, it caused a lot of confusion. And apart
from that, I needed a jacket for school, so I ordered from Cambridge, which shipped promptly in
like 2 days and then after the two days, 2-3 days after two days, and like a week later I just
received the package Daraz said that was cancelled and I still had to pay for that package as well.
So, it was like a minor inconvenience, but still that Daraz should, you know, look into this
46
problem that if they're giving out a message that something is cancelled and then delivering it
later and they were like giving mixed signals the entire time, it can cause a lot of confusion. So
they should, you know, work on that.
M: OK. And how did this experience make you feel?
O: It was bad. But it also kind of made me laugh. So. I mean, because it was very weird. I got a
call, my orders were cancelled, and 20 minutes later they were saying the rider is going to arrive
with your order so. But mostly it was bad, yes.
M: OK. Thank you. OK, thank you and anyone else.
Zo: I would also like to share another experience this one time I was looking for markers Crayola
Super Tips which are imported and not made in Pakistan. So I really wanted to get them like I
was willing to pay triple the price if someone could get them for me. So I looked everywhere I
could. All of the art shops, Paras, everywhere but nobody had it. I finally found it on an online
store, so that was a very memorable experience for me and I still remember it. I still have those
markers, and keep them safely even though I don’t use them but I'm really happy I found them
on online.
M: OK, that's great. And anyone else? Fizza, Zunaira?
Z: Yes, I have one time from Daraz, I ordered a cushion for my mother as she had back pain. The
picture they showed on their on their portal. It was very different from the one they delivered. So
it was a negative experience for me. This was like totally different.
M: OK. Thank you. And so we'll move on to the next question.
AM: Azam and Fizza, can you please share your experience on this question?
F: Yeah, it's been a negative experience for me too. I usually order makeup and the foundation
shade is different. Same goes with blushes and lipsticks, the same shades problem.
M: OK. And Azam?
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A: Yeah. So yeah you would know the 11:11 sale that came impressed me very much. I found it
very interesting because there were very attractive discounts on certain products that were quite
attractive so yes it was a positive experience for me too.
AM: OK. Thank you. Shezil you can move on to the next question.
F: And yes, one time. On this 11:11 sale I had ordered footwear stuff and even though the
reviews were really good but still the things that came were of like bad quality. So then I thought
to myself that I would never order footwear from Daraz again.
M: So yeah. OK. Thank you, Fizza. So moving on to the next question, what are the most
common reasons for not completing a purchase? So you add items to your shopping cart, but you
don't go ahead with the purchase. So any common reasons you guys can identify?
A: I would like to jump in and say OK. The one of the most common reasons for me would be
the tax, sales tax or the value added tax which they add. So when that is added with the original
bill I get really demotivated, discouraged, even though there was initially excitement for the
product. If I would give an example of food panda. So I've completed my order, everything is set
ready to go but then on check out you know they add the sales tax and that just makes your bill
even more, you know, not attractive at all as in you are now discouraged to pay that certain
amount for food. So yeah, that just you know, then changes my mind and I reduce certain items.
Then I proceed with checkout. So yeah, due to sales tax, and value added tax, which they add in
your bill, that has been a major reason that has you know, caused many changes in my spending
pattern, so yeah.
M: OK, thank you, Azam. Anyone else?
Zo: Yes, I would like to go. OK, so for me, the biggest reason would be uncertainty, as in, I'm
unsure of how the product is going to turn out and I usually do that for like if I'm buying clothes
online, so I add it to my card and I'm like, yes I like it. And I just take a screenshot of the clothes
that I really want, and then I'm like, I would rather go to the mall and then I can look at these
clothes myself to make sure if these clothes actually look the same because usually they don't
look the same. And they're like, oh, it's just different in the picture. So I would rather go to the
48
physical mall and I would just see for myself. So I just add them to my cart just to see if I really
want that. But sometimes I do order. But usually I just keep it there.
M: OK, great. Thank you, Zoha. And Zunaira anything to add?
Z: Yes, after adding items to my cart, I tend to overthink. Or I simply get distracted and not buy
them due to this due to sales tax or other shipping costs they have. Or due to uncertainty also. So
I end up not buying them.
M: OK, so Zoha in your scenario you mentioned uncertainty so what type of uncertainty? Like
Zoha you mentioned product uncertainty and Zunaira what type of uncertainty are you talking
about? Is it the seller? Is it the product?
Z: The product how it would turn out, would it be the same as it's shown in the pictures, the
quality?
M: OK. And going back to your experience, you said the cushion was different, yes?
Z: Yes
M: Ok
Zo: And I would also like to add here OK uncertainty for me is also about, if I find similar
products elsewhere, I add it to my card and then I go look at other places and see if they have
more reviews. You know, if they have better ratings. So I order it from that place and so the
items are left in the cart.
M: OK.
AM: Azam, Omer, Fizza. Do you guys want to add something like have you guys ever
experienced this? Would you like to add?
F: Yeah its product uncertainty for me too. You are unsure that the product will be the same as
shown in the picture so yeah. That’s it.
M: And Omer?
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O: And yeah, I was just saying, I also tend to overthink a bit, that why don't I wait till a little
more? You know, if I'm ordering something and it's already in my cart If you scroll down in
Daraz, I don't know if it happens with you guys, it happens with me that it gives me the same
products by like different sellers and they have like different prices. So I usually sometimes just
add it into my card. And linking it to uncertainty, I just wait in case someone might come up
with a better offer, some other seller so you know, I just type of wait it out. If I can get a better
deal, because sometimes the things I want to order, they're not available here. They're shipping
from overseas. So like the shipping cost and everything, they stack up and become really
expensive so you know linking to uncertainty. Sometimes I just wait for like the other
competitors and sellers to come up with better deals for the same product or a similar product.
Zo: Also when I'm shopping on Daraz, there's one thing that happens with me all of the time is
when I'm looking at a product that I need, I search it up, and then as I'm looking at the product, I
go down and see related products. I just keep looking at the products and whatever I like, I just
keep adding it to my card, even though I really don't have the money to afford all of them right
now. But I just keep adding it to my cart so that when I will have money and when I will have
the extreme need to buy it, I will buy it, but I just save it. It's like a saving option for me to save
for later and that later never comes.
O: It's like adding like a bookmark to all of those products.
Z: Yes exactly.
M: So for you guys, what is a better seller? How can you mitigate the seller uncertainty?
Zo: So a good seller is again someone with lots of ratings with lots of reviews. If I’ve heard
about them from my peers. Even if a seller does not have any kind of rating but if a friend
recommends them and says you should buy too. So I look at these things. And I'm like, so yeah,
also brands. We know brands they don't, they really scam. So brand knowledge also plays a part
so that is the seller uncertainty part for me.
O: For me, I think it's better when the sellers are, you know, they make use of effective
communication that they’re prompt and they don't take long to reply and they're very active
because if I want to inquire about the product, if I want to, you know, clarify some like
50
specifications of the product, I can just ask them and they reply quickly. They don't take up much
time because sometimes I will not buy a product I was really keen to buy, if I ask the question a
question from the seller in the chat box about anything about the specifications and they tell me
or they take a very long time to reply, I would simply not buy the product because it just feels
like if the seller is so unserious, it just doesn't create that level of trust that I would give him my
money and expect, you know, a quality product in return. So I think for me, it's very important
that the seller makes use of effective communication and is very quick while communicating
product and its details.
M: So we'll move on to trust. How do you feel? Is there-Has there been any other instance?
AM: I would like to add something, good experiences or bad experiences that you guys have
mentioned. And as Omer mentioned, that effective communication plays an important role. So I
would like an opinion effective communication changing your purchase decision.
Zo: So, recently in August, I was purchasing a gift for a friend, and it was a chocolate box with
pictures where you pick up the lid and it just opens. The seller was on Daraz and I was very
uncertain about quality chocolate, because they may be expired. So, I messaged the seller, and
that guy sent me all the information from A to Z. He would send the details about the whole
process with pictures and ask for my preferences. When he printed out the pictures, he said he
needed a part of the amount in advance but I trusted him so much that I sent him the money on
his easypaisa account, which is not allowed on Daraz in any way but I sent it because he said he
needed money to print the pictures. And I did send him that and so he then printed the pictures.
And he showed me the bill and he showed me how he was making the box and everything. And
it turned out perfect. And even though he shared with me the chocolates and everything, but it
was the like, I was pretty impressed. He charged a bit for that but since he informed me about the
whole process and walked me through it, I was not mad at all. Like, I was very happy and
satisfied with it. And again, next time if I have to get that box, I will get it from him.
M: OK. Thank you. Fizza and Zunaira, if you were in this position and the seller gave you all
such information, do you think it would affect your decision? To purchase from him?
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Z: Yes, it would. It would have made me like more certain and I’d take the decision to buy that
thing again and again, and I would him recommend to others also.
M: OK. And Azam?
A: Yeah, I have the same point of view. I would recommend that seller to everybody else and
trust him. If there’s proper communication with him or her, and then you know, trust her that like
you know he's actually carrying it out properly, yeah.
M: OK. And Fizza? Is this the only thing? If the seller gives you all the information then you'll
trust him?
F: Yeah, I think other factors are at play too but this is a major factor. If the seller is
communicating with you and is responsive, you end up making the purchase.
M: OK. But what other factors?
F: Yeah, other factors, include reviews and ratings.
M: OK, thank you. I will move on to feedback and reviews. So Omer, would you like to
elaborate on that?
O: What's the question?
M: I'm talking about feedback and reviews and how that affects your uncertainty when you're
purchasing the product.
O: My uncertainty or like certainty?
M: Reduction of uncertainty.
O: What's the question?
M: I'm talking about feedback and reviews and how that affects your uncertainty when you're
purchasing a product.
O: My uncertainty or like certainty?
52
M: Reduction of uncertainty.
O: Yes it plays a major role in reducing my uncertainty or increasing the uncertainty because
before buying any product I think Daraz does not filter out it's product reviews because there if
the product is genuinely very nice you can see a lot of people you know giving actual pictures of
them receiving the order and giving out their own advice and their own point of view and
perspective how they ordered what they asked the seller and everything. They provide all the
details because I think giving the review under the product you've purchased Daraz gives you an
incentive. They give you some coins or they give you some type of amount in your or some
tokens that is the incentive to give you know unbiased opinion and review of the products. So
now before buying any product I always go into the reviews and sometimes many times I've seen
the reviews I've been really keen everything looks nice the seller is also very responsive but
sometimes I just go and look at the reviews and the reviews are unbiased they give and whatever
they're saying if they're criticizing the product they give like factual evidence they give pictures
and there's like visual evidence.
M: And that helps you make your decision?
O: Yes that helps me either buy the product if they're all positive reviews and they've given
factual and visual representation of why they're giving that positive review I definitely just go on
and straight order the product without thinking twice but when I see you know those unbiased
and unfiltered negative reviews that really restricts me that's a great restraining force for me from
ordering any of these products.
M: Okay thank you. Azam Do you have anything to add?
A: Could you like say your question again I had a bit difficulty in understanding like you're
talking about reviews of the product as in?
M: Yes reviews and feedback of the product so talking to the seller getting reviews looking on
their feedback page does that help you make your decision?
A: Yes definitely that plays a big part because you have to see that the product you ordered that
like quality assurance it is also I would say a big factor they have to assure you of the quality in
53
any way for example if you want some proof like a picture or something so you know that could
play a huge role in defining whether or not the product you're buying is worth it or not so yeah
review and the feedback as well all together it's every it's a combination and you know it's
helpful overall yeah.
M: Okay thank you. Zunaira?
Z: Yes reviews and ratings they play a crucial role when I'm purchasing so making a decision to
purchase something online it gives me a sense of what to expect as people they post their
experiences the picture of the product they received so there are positive and negative both
reviews and when I make decisions I weight them both the pros and cons of buying the product
so yes they play an important role.
M: Okay thank you and Fizza anything to add?
F: Yeah I noticed one thing that sometimes the rating is completely given but their comment the
review is negative like even though they gave five star rating but their review is negative so that
thing is a little confusing like I don't know if others have experienced it but I have noticed this.
Zo: I think that is because the reviewers don't understand what a five-star review is…
F: Exactly so they confuse me
M: Okay thank you. so moving on to security.
Zo: Shezil I have to say one thing it happens with me in Daraz that if I really need something and
I am not getting its reviews or the seller is from overseas I do take the risk and I still order it
because I really need the thing like I ordered my pen to write on my iPad I was not getting any
local pen and I ordered the closest to Apple pen that I found I ordered from there it had
absolutely zero reviews and that seller did not have any ratings but for me the factor was that I
knew that if my product is wrong then Daraz will compensate for it because in the past they did
if something was wrong I used to go to Daraz because my mother used to scold me that I wasted
money so I used to go to them and I used to tell them that I have this issue and I ordered this and
this was the issue with the product and they without countering me or anything they just used to
54
be like give it to us and they used to return the full money with the shipping to my Daraz wallet
every time so that was a big factor for me.
M: Okay thank you Zoha, anyone else with a similar experience… so I'll move on to security and
the payment process. Does that play a part in your decision making?
Zo: Yes payment method I mean I don't order from shady websites especially pre-payment I
never do that cash on delivery is an option I feel like they are the safest because you can never
trust in Pakistan especially you can never trust prepayments in shady websites the security really
does matter yes
M: Okay and Omer and Azam do you have anything to add?
O: Can you please repeat your question
M: Yes I’m talking about security how big of a role does security play providing your
information online
AM: Payment security basically the options cash on delivery and stuff like that
O: I always offer cash on delivery because I think it's much safer that I will pay after I've
received the product it seems very I don't know unsafe or it feels like if I've already made the
payment and the payment has been received by the sender or whoever the guy is selling if he's
received the payment I just feel as if he might become complacent he might not you know be
eager enough to send the product quick so he gets that money but I feel like if I order on cash on
delivery not only is it safe that once I get the product it's in my hand just guaranteed delivery
then I'm giving out the money the apart from that I think that if I don't know if this might be a
factor I believe that the guy the seller whoever is it if it's a guy or a girl he sends it I don't know I
will rephrase.. so sorry I was just trying to say that in cash on delivery I just feel like it's safer
that I'm giving the money once I received the product I know that received the product and
second factors that I feel that the sender when he would be more eager to send it to me I just feel
like I would get it delivered faster because he's eager to get that return on the product or service
he's giving out he just wants that return and it's also very complicated to put in your card
55
information your number your email if this goes wrong your secondary card and all that I just
feel like cash on delivery is the safest and the most convenient
M: okay thank you Omer, and Azam anything to add?
A: Yeah I will also pick up where Omer left off that I would trust cash on delivery more because
I feel that's the most you know the best method of payment I'm not comfortable like giving out
my card credit card details well not my well my father's or my mother's because I don’t have
any.. also it's my fear no matter how trustworthy the website is I would be still always
comfortable just doing it you know cash delivery okay so you know like the product arrives and I
just give the cash straight away not the credit card experience no so yeah
M: Okay great thank you Azam. Thank you. So we were talking about security and the payment
process so Zunaira and Fizza do you have anything to add to that?
Z: I also have the same point of view as Omer and Zoha that I only rely on cash and delivery and
do not trust to give my card details also my father also does not allow me to put the credit card
details when ordering online he always asks me for choosing the cash on delivery for payment
purposes.
M: And Fizza?
F: Yes as everyone said cash on delivery is the most convenient option and also safest so yeah
M: Thank you I want to tie everything together. We talked about seller uncertainty product
uncertainty performance uncertainty, security issues so tying all of this together do you think you
will continue with your purchase if all these issues and problems are resolved?
A: Yes I think I would definitely continue with my purchase because there would be little room
for improvement for every website because they will be covering up all the shortcomings that we
say through our feedbacks that we convey to them and they will be tackling our fears so you
know tying this all together as you said if all this is implemented so yes definitely I will be more
confident shopping online and maybe just maybe I would also look towards at some point using
the credit card payment method so I’m overall I would say my trust level would increase
definitely.
56
M: Okay great and anyone else? Zoha?
Zo: Can you repeat the question I missed it.
M: Yes I was just asking tying all of the uncertainties together that if they were removed or made
better do you think you would purchase continue with your purchase and not just abandon your
shopping cart?
Zo: I don't really think that will make a difference because the reasons that I abandoned my
shopping cart for would still be there. I would say only product uncertainty related issues would
be resolved but the other reasons like I am looking for products or slowly I'm liking everything
and I'm just adding everything to my cart to save it for later so I don't think that would change I
would still add to my cart and still abandon it later or look at it and look for the products in some
other store or some other websites so that would still be there.
M: So is there any way that that? Could be reduced or it's still going to happen?
Zo: I think it's part of the shopping experience online and I don't think that can be reduced. There
is, there's probably no way like I use it as a bookmark like Omer said. And I would still be using
it because it's way convenient for me. To save things online like that.
M: OK. And Omer would you like to add?
O: Haven't I already commented on this?
M: Yes, but do you think if all of these uncertainties are reduced, you would proceed with your
purchase? And not abandon your shopping cart?
O: It depends what the product is. Is it one of my wish list products which I have just
bookmarked and don't have the money to buy right now? But or is it the product I have the
money to buy right now and if it takes all of the boxes I will most definitely go ahead and place
that on. Right. The ones which I want right now and are accessible to me and they all these
uncertain uncertainties are, you know, eliminated I would. Definitely. Sorry, definitely.
M: OK. Thank you. And Fizza-yes yes Zunaira.
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Z: I don't think that it would 100% that I would 100% proceed with my proceed to purchase that
item because there's this factor. Add the things in your shopping cart and then add over thing. Do
I really need this item? Is it my need or want and then I tend to abandon it if I don't really need it.
M: OK. And these factors don't really help you, that's justZ: It won't 100% help me, but some of the times it may.
M: OK. Thank you, Zunaira and Fizza I wanted to ask the same question. So if all of these things
were covered, would you proceed with your purchase? Or would you want online shop?
F: I will proceed with my purchase. Because according to my use all my problems and risks
would be mitigated, and there would be no product uncertainty, and I don’t online shop as much
but if all these happen then I think I’ll make my purchase and not overthink.
M: There's nothing else that would convince you to online shop. Like we are other factors that
are at play.
F: I mean, I don't understand that already if all these uncertainties are tackled. I can't think of any
other factor. I mean, I will proceed. With my purchase. It is already a convenient option to shop
online.
M: OK, great. Thank you. So anything else or any key takeaways from our discussion with
anything that was most important to you guys?
AM: And any suggestions?
Zo: On this one. If I had unlimited money, I would probably, I would not feel the need to not
have anything that I can have. So that is yes. That's like the reason.
M: OK. And any? Go ahead. Yeah.
AM: So I was saying, any suggestions that you want to give to online sellers?
O: I would say just be honest. You know, just be honest. Be quick to respond. Sell something
which does have a market and has a demand, because I often I come across items on Daraz
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which has zero orders, 0 reviews, 0 products sold and they're just the weirdest like the most niche
products ever. Like. Like for example, eyelash oil. For, like, nobody's really buying that in
Pakistan. So I think they should. My advice to online sellers would be to pick a product which
has a like a big enough or stable demand and be honest about it and market it well and you know,
just keep competitive pricing. So you know people would actually go and buy your product
because it's just wasteful to just sell something which does not have a demand. Like especially in
in your country, the way Daraz operates in Pakistan. That's all I would give to them as advice.
Zo: Also, speaking of honesty, there's one thing that I have seen a lot, especially on Daraz, you
have something added in your cart you know the price of it, you know, price. And I will get this,
this, this much money saved up and I can finally buy it. You know the price and then all of a
sudden Daraz has a sale and you're like oh the price must have reduced for this. And the thing
you’re getting for Rs.500 you know the price from before but they say its on 40% off and was for
900 now it's 500 but it was already 500. And sometimes they say that was for 900 and now it's
750 only, but they should stop scamming because you know, that even if the seller is something
good but It doesn't matter how much I needed, I still would not buy it from that seller because
that seller just lied.
O: I also want to add to this because the another product I've seen on there. Which annoys me a
lot is that there's this they sell this. They say there's a magnetic bracelet which helps weight loss
and they have this really fake, you know, before and after picture and everybody's in the
comments have multiple bracelets sold everybody in the comments is lying. Everybody's like,
yes, this helped me lose 2 to 10 KG's in a month. No bracelet, nothing external, I don't think
something as small as bracelet will help you lose weight. And then I also see a lot of people
asking questions that will this help reduce weight and the sellers like yes, you will see definite
weight reduction in like 2 weeks or one month and guaranteed and everything that is just lying to
the customers and. I think the customers, they're not at fault because they're I feel like in this
field they're a bit innocent because these people might not have like the knowledge and the
understanding of seeing that this is a basically just a marketing hoax. No bracelet can help you
lose weight like especially this much weight. So I just seen on Daraz there's so many sellers just
outright lying just to sell their product. Like their lies don't even make sense. But they're just
lying to the public just to sell their products. So I think that's also a negative thing.
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M: So Omar, how do you tell? How do you tell if you're looking at a good product review? OK,
how do you tell they're not made-up?
O: That just comes down to personal knowledge.
AM: As in. No, as in there are powders and proteins, and I don't know what. You consume those
and then I have seen these products on the consume. And I’ve seen these products on Daraz that
if you use this you will lose 10 kgs and those urdu advertisements so about that. You know there
was.
O: Yes those ‘make your body fatter or slimmer’ adverts.
AM: Yes yes. And they’re also on the Karachi walls
O: Yes they show a body builder and a really skinny guy who turns into the body builder and it
says I don’t know increase your weight in 10 days that’s all also just a mean lying to the public
and the public accepts it. Probably a magic formula or shortcut.
AM: OK, thank you. Azam, do you want to add something?
A: Yes, I think the most important thing is trust. You have to develop trust with the customers
because then trust if made better with customers, that will create customer loyalty so customers
will keep on coming back for more. There will be more interested in the product so yeah. So I
feel trust is the main is the core element regarding you know buying of products online and as
Omer also said, I would like to further add on his particular point that particular product should
have a market, strong market. If he sells that product then its beneficial and in certain prices and
pricing strategies should be used to attract customers and just so you know that I think that's also
very important thing they could follow up on.
AM: OK, thank you, Azam. Zuniara, do you want to add something to this?
Z: Yes, trust is important. And the way that they delete the negative reviews or hide them and
bring up only the positive reviews, that should be stopped.
AM: OK. Thank you. And Fizza, do you want to add something?
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F: Yes, the same thing that honesty should be there because it’s the biggest issue when you’re
ordering something you don’t know about the product so trust should be there so that you know
that you’re going to the 100% same product that you asked for so then you will purchase more
and you’re go more towards online shopping.
AM: OK so. Do you guys want to add something because this brings us to the end of this session
and we all really want to thank you for participating and taking out time. And thank you.
M: Yes, thank you so much everyone.
Zo: You're welcome.
A: Thank you for including us in this conversation.
AM: This study and the responses will be kept confidential, so you guys need not to worry for
that. And thank you for taking out time.
A: You're welcome. Thank you.
O: Thank you. Welcome.
AM: Okay Allah Hafiz.
FOCUS GROUP 2
Moderator – Rabiya Usman
Assistant Moderator – Bizzal Farhan
A – Areeba
Ay – Ayesha Faisal
FH – Fatima Hasan
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FR – Fatima Rizwan
V – Verfana
Z – Zahabia Taqi
Transcript
M: Keeping in mind the current economic situation in Pakistan like raising inflation please tell
how it has or has not impacted your online shopping styles and habits and in what ways?
A: I don’t think it has affected much since I don’t pay for my shopping expenses
Ay: I think it has to some extent because there is a huge difference between the same products
prices being raised as compared to earlier times.
FH: I think GDP has decreased and inflation has increased so definitely it has affected the way
people shop and for me since I pay for my shopping so it is not the same as it used to be.
FR: yes, I have also seen a very massive shift in the price ranges of various things, but talking
particularly talking about online shopping it has not impacted me because I don’t do online
shopping much
Z: ok so economic situation has impacted people as people are losing jobs, not making enough
money. Personally, I was never that interested in online shopping and would use items that my
parents bought. But yes, talking about inflation’s impact on family’s income so definitely impact
is there because there a time came where products became too expensive and we decided to
switch to the alternatives, but then we thought that lets not consume the expensive items like
Nutella etc.
V: I don’t shop online that often, but generally talking about physical shopping so definitely
inflation’s affect has been there as now we are paying more and buying less for example when
we go to shop dresses so we usually plan to buy either 3-4 but then after checking the price tags
our mind changes and we end up buying only 1.
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M: As you guys have shopped only so share any memorable experience positive or negative that
you guys experienced?
Ay: ok so in positive experiences I would say that quick delivery system and product packaging
with welcome and thanking cards. Also, easy website navigation would also be positive
experience for me when shopping online, however, the negative experience due to product
scamming. Issues with the product description shown online as it is usually not what gets
delivered. Websites shows different pictures but deliver completely different items.
FH: I think for me the positive will also be delivering what was ordered and on time. One thing
really liked about brands like sapphire and alkaram is that they are sustainability oriented by
using paper bags instead of plastic ones. But I recently like 4-5 months ordered a shirt from
sapphire and they delivered the wrong sized shirt. On their site they had their size chart so I
selected my size, but when it got delivered it was a different size and did not fit. So, they had
problem with their length measurement charts.
FR: ok talking about the positives would be online shopping stores and websites having best
customer service. Customer service is about how well and quickly they respond to your queries,
emails, providing accommodation of any sort. These factors matter to me in shaping brands
image. Also, websites should also put sufficient number of clear pictures to show what
production specifications are and not just put 1-2 vague photos. Detailed and profound
description helps a lot. The negatives will be incorrect order delivery and long delivery periods.
V: online shopping is energy saving and time saving. However, talking about the recent
negatives experience that I ordered cotton fabric bedsheet covers from a random website. On
their website they had given a proper product description, but when it got delivered it was not
100% cotton, but was a low-quality material. I complaint but they had no return policy. I was
dissatisfied as they did not accommodate me with the alternative.
Z: for me also a good customer feedback system where they are responding quickly to queries.
Recently, it happened that I ordered some LED light off Daraz and when delivered I found out
that they were defaulted as some of the bulbs were not working. I complaint this to the seller on
the customer care chat and it is commendable that they were spontaneous in responding and were
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very accommodating. They assured me that we will re-deliver the lights. However, one of the
negative memorable experiences was with Instagram page. I ordered 4-5 dresses off this site
because it had good and positive reviews, I thought it was genuine site, but upon receiving my
parcel it tuned that it was some random dress which was not what I had ordered. I reported this to
the owner, but she did not respond to me and blocked me.
A: usually with online shopping there are more negatives than positives. I ordered with this dress
off a page, but they delivered it the wrong color after a month. So long delivery period and
wrong color really disappointed me. They also promised to pay the delivery charges which they
haven’t paid yet.
M: What are the key elements that you guys focus on before proceeding to final checkout and
payment? And what are main reasons that would hinder that final checkout?
A: I would say one of the key elements for me would be clear images and videos of the products
shown on the websites. (Indicating to extensive product description) especially with websites
which are selling dresses so they should focus highly on correct product specification, size charts
and colors.
Ay: one of the reasons is if high unjustified shipping costs, then I won’t proceed with the
checkout. Secondly, if insufficient reviews, negative reviews either about the seller or the
product because those negative feedback and reviews would indicate seller and product
uncertainty. Thirdly, lengthy checkout processes would also prevent me from final checkouts.
FH: for me also unjustified high shipping costs will be main factors for not proceeding with the
final checkout.
FR: lengthy checkout process, uncertain and unappealing product description will be hindering
factors in checking out.
V: same factors like high delivery costs, uncertainties on seller and product alongside long
delivery periods will demotivate me to proceed with the final checkout.
Z: ok so I have this toxic trait where I tend to put everything in the cart with no intention to
actually buy them (doing it for the time pass or entertainment purpose). Secondly, I would say
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that value for money is important that is if I see same product on different sites at cheaper prices
or waiting for discounts then I would prolong the waiting period and not actually buy the added
items.
A: also, I would like to add one thing that if we are buying something expensive so instinctively,
we think to physically go to the shop and buy it with full inspection and all just to be sure about
that product.
M: What information do you guys look when deciding whether to trust an online retailer,
particularly if you have not purchased from him/her?
A: for me reviews and feedback about the seller would matter a lot.
Ay: for me also reviews and feedback and ratings plus the authentic and reliable product
description will be the deciding factors.
FH: reviews on their websites, YouTube reviews, and suggestions and feedback from friends
who have bought from them.
FR: usually I buy from the trusted pages and website and rarely buy from new websites. But for
example, if there is new startup so, searching up their social media accounts and hunting for
reviews and ratings would help me to decide whether to buy or not.
V: I also look up for reviews
Z: I look for balanced reviews and pictures. Balanced reviews as in that I don’t trust reviews with
words “amazing, very good” etc. because I feel like everyone cannot get satisfied with what they
are buying so there has to be some of the average reviews too. So, I prefer looking into reviews
with pictures uploaded by the customer’s just to verify their feedback as honest and reliable.
M: What are your suggestions on effective strategies that can be used by online retailers to make
their sites more trustable and convenient for local consumers?
A: websites should be user friendly, short checkout process, and proper production description
with high quality pictures and videos
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FH: website navigation should be easy for examples brands or online retailers should categorize
their products like if it is an apparel brand so they should classify each section “stitched”,
“unstitched”, “casual wear” etc. this makes website navigation super easy. Secondly, putting up
clear pictures and videos. Thirdly, putting up separate size charts if it is footwear or apparel
brand. Fourthly, clearly mention their return and exchange policy and be quick in responding to
queries. For me a quick responding service would cover up a negative experience and I would
buy from that brand/website even after a negative experience.
FR: same response as Fatima Hasan
V: I agree with all the points discussed. But I would like to specifically talk about skin care
brands that I don’t trust any online brand or website sellers selling skin care as they don’t
mention what ingredients they are using.
Z: agreed with all the pointers mentioned related to good customer service like daraz. Secondly,
clear product description with images and videos.
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