Shoppers more likely to abandon purchase on mobile apps

Consumers feel like they do not see the whole picture when using their phones

ONLINE shopping using a mobile phone or tablet may be safer for people hoping not to overspend this January, because impulse buys are less likely than on a desktop computer, a study has shown.

Although mobile apps are growing in popularity, shoppers are more likely to abandon purchases on their phones than on desktops due to a phenomenon called “emotional ambivalence”.

Academics at the University of East Anglia believe consumers feel they are not seeing the full picture on hand-held devices, and fear they could be missing out on special offers elsewhere or overlooking hidden costs.

Concerns about privacy and security could also cause people to put items into their shopping baskets but then pull out, researchers said.

“Our study results revealed a paradox,” said Dr Nikolaos Korfiatis, at UEA’S Norwich Business School. “Mobile shopping is supposed to make the process easier, and yet concerns about making the right choice, or about whether the site is secure enough leads to an ‘emotional ambivalence’ about the transaction.

“That means customers are much more likely to abandon their carts without completing their purchase.”

The researchers say the findings present a challenge for online retailers who are investing heavily in mobile shopping apps, yet failing to reap the rewards.

According to Criteo, a market research firm, the share of e-commerce traffic from mobile devices increased to 46 per cent in April to June 2016. But only 27 per cent of the purchases were completed, with conversion rates significantly lagging behind desktop purchases.

The team studied online shopping data from 2016-17 from consumers in Taiwan and the US. They found the reasons for hesitation at checkout were similar in both countries.

Shoppers are also more likely to use mobile apps for researching and organising goods, rather than buying, which contributes to checkout hesitation.

Dr Korfiatis added: “People think differently when they use their mobile phones to make purchases.

“The smaller screen size and uncertainty about missing important details about the purchase make you much more ambivalent about completing the transaction than when you are looking at a big screen.”

The findings, published in the Journal of Business Research, showed that consumers are much less likely to abandon their shopping baskets if they are satisfied with the choice process.

The researchers said app designers can help by minimising clutter to include only necessary elements on the limited screen space.

Flora Huang, the lead author, said: “This is a phenomenon that hasn’t been well researched, yet represents huge opportunities.

Companies spend a lot of money on tactics such as pay-per-click advertising to bring consumers into online stores – but if those consumers come in via mobile apps and are not finalising their purchases, a lot of that money will be wasted.”

Other strategies that might prompt a shopper to complete a purchase include adding special offers or coupons for a nearby store at the checkout, the team found.