TEDIOUS ONLINE CHECKOUT DISCOURAGE SHOPPERS

The different innovation in the digital shopping experience is reshaping customer experience. According to the
Spliton survey, 87 percent of online consumers tend to abandon their carts during the checkout process due to the
tedious process and complicated transactions. Unfortunately, for the retailers, 55 percent of the online shoppers will
not return to the site.

Generally, 70 percent of online shoppers abandon their cart, and older shoppers tend to have the least patience. For
instance, 90 percent of shoppers aged 55 above would not complete a tedious or intricate checkout process.
Comparably, only 83 percent of millennials responded that they tend not to follow through with a tedious checkout.
Only seven (7) percent of shopper aged 55 tends to exit a tedious checkout process, comparable 12 percent of
millennial who completed the process.

Unnecessary advertisements during the checkout process are the major reason to reduce the shopper’s inclination
to complete the online transaction, with 25 percent of respondents claiming that these are the reasons for
abandoning the cart. Nonetheless, the placement of the ad during the checkout process, millennial was least
bothered, with only 19 percent expressing that these ads were the major reason to abandon their carts during the
checkout process. In contrast with 28 percent of shoppers aged 45 and older tend to abandon their cart if they
believed there were too many ads during the checkout process.

Jon Don, the CEO of Split on, expressed that the high cart rate abandonment raises the alarm among online retailers
to need to do something in streamlining the online shopping experience. Although online shoppers appreciate
options presented to them, it is more important for them to proceed to checkout seamlessly at the risk of losing
customers. Online retailers must guarantee their customers’ details and information; payment and transaction are
secured while at the same time not too heavy for shoppers.

Below is the rate of cart abandonment among the top five popular sites and shoppers grouped according to their
age. Jon Don’s assistant believed that differences in rate do not only depend on the age groups but also the sites.
Was the assistant right? Explain your answer.

AGE
Top 5 shopping site 21-30 31-40 41-50 51-60
Site1 12 44 21 85
Site2 14 32 54 83
Site3 21 54 32 93
Site4 9 23 33 87
Site5 17 45 45 80

Anova: Two-Factor Without Replication

SUMMARY Count Sum Average Variance
Top 5 shopping site
Site1 4 162 40.5 1061.66667
Site2 4 183 45.75 884.25
Site3 4 200 50 1010
Site4 4 152 38 1164
Site5 4 187 46.75 665.583333
Age Group
21-30 years old 5 73 14.6 21.3
31-40 years old 5 198 39.6 147.3
41-50 years old 5 185 37 162.5
51-60 years old 5 428 85.6 23.8

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ANOVA
Source of Variation SS df MS F P-value F crit
Rows (Shopping Site) 378.7 4 94.675 1.09145931 0.4041 3.25916673
Columns (Age Group) 13315.6 3 4438.53333 51.1695648 4.13E-07 3.49029482
Error 1040.9 12 86.7416667

Total 14735.2 19

Let:

a) Ho1: There is no interaction between the rate of cart abandonment and the shopping site.
b) Ho2: There is no interaction between the rate of cart abandonment and the age.

Decision Rule:

Independent Variable
a) Shopping Site P-value = 0.4041 P > 0.05; Do not reject the Ho1
b) Age Group P-value = 4.1255E-07 P < 0.05; Reject the Ho2

Conclusion:
A one-way between groups analysis of variance was conducted to explore the impact of age and online shopping site on
the rate of cart abandonement. Participants were divided into four groups according to their age (21-30 y.o; 31-40 y.o;
41-50 y.o and 51-60 y.o). There was a statistically significant difference at the p < .05 level in the rate of cart
abandonment for four age groups. However, there was no significant difference at the p > .05 level in the scores for the
shopping site. Therefore, the chances of cart abandonment is highly influenced by the age. Older age groups are the ones
who don't likely proceed to checkout compared to the younger millenials. Jon Don's assistant however isn't right that
shopping site affect the means.

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