Why would a firm record the number of abandoned virtual carts on its website?

Question

BlackTom AI · Accepted Answer

Consider what tracking abandoned virtual carts actually measures and what business insight it provides.
Option 1: To assess the conversion rate. This makes sense because abandoned carts are the steps in a shopping funnel where potential purchases fail to complete. Analyzing how many carts are abandoned versus completed purchases directly informs the conversion rate and where drop-offs occur.
Option 2: To assess the opt-in rate. The opt-in rate refers to whether customers agree to receive communications or newsletters. Abandoned carts focus on purchase behavior, not consent or signup behavior, so this option doesn’t align with the metric.
Option 3: To evaluate customer loyalty. Abandoned carts relate to a single shopping session or series of sessions, not the long-term loyalty indicators like repeat purchases or lifetime value. While trends in cart abandonment can hint at dissatisfaction, it is not a direct loyalty measure.
Option 4: To evaluate postpurchase cognitive dissonance. Cognitive dissonance after a purchase is about buyers re-evaluating their decision after completing a transaction. Abandoned carts occur before purchase, so they do not assess postpurchase attitudes.
Overall, the most relevant use of recording abandoned cart data is to understand how effectively the funnel turns browsers into buyers, i.e., the conversion rate, rather than the other metrics which address different stages or aspects of the customer journey.

Why would a firm record the number of abandoned virtual carts on its website?

View Explanation

Log in for full answers

Similar Questions

A social media site offers advertisers two pricing options, a PPC of $0.60 and a CPA of $3.00. What CR should an ad buyer achieve on their website in order to make the two options exactly equivalent in terms of price?

In consumer behavior, the conversion rate measures:

MC Qu. 19 Because not all purchase intentions result i... Because not all purchase intentions result in an actual purchase, retailers calculate the ________ Blank to measure how effectively a decision to purchase a specific product results in a completed purchase.

Eddiebauer.com constantly reminds customers of recently viewed items and informs them when stock is low in an effort to entice the customer to make a purchase. Eddie Bauer is trying to improve its

Retailers use Blank ______ to see how well they are doing at turning potential buyers into actual buyers.

The number of people who complete a form on a landing page divided by the number of people who visited the page is called...

_______________ refers to the percentage of people who take action on a particular asset, such as an opt-in form, out of the total number of people who actually land on the asset.

In a consumer society, many adults channel creativity into buying things

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler