Customer Retention and Unplanned Purchases on the Web

43 Pages Posted: 23 Oct 2008

See all articles by Marios Koufaris

Marios Koufaris

Zicklin School of Business, Paul H. Chook Department of Information Systems and Statistics, Baruch College - The City University of New York

Ajit Kambil

Deloitte Services LP

Priscilla Ann LaBarbera

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: October 1999

Abstract

The explosion of business to consumer electronic commerce creates newchallenges for companies to design electronic systems and interactions that retaincustomers and increase sales. This exploratory study examines the impacts of selectsystem design and other variables that can influence customer intention to return and thenumber of unplanned purchases made in an online store. We find that both the level ofperceived control and the shopping enjoyment experienced by new web customers canincrease their intention to return. However, repeat customers do not seem to beinfluenced by either perceived control or shopping enjoyment in terms of their intentionto return. We also find that an engaging web store design that utilizes value-added searchmechanisms and presents a positively challenging experience can increase the customers'perceived control and enjoyment. Our results also indicate that product involvement isless important to new customers as opposed to repeat customers but the more oftencustomers return to a web store the more their shopping enjoyment is determined by theirproduct involvement. Finally, our study shows that neither perceived control norshopping enjoyment have any significant impact on the number of unplanned purchasesmade by customers. Our results deepen our understanding of the consumer onlineshopping experience and suggests the need for the design of systems which increase theuser's perceived control to encourage repeat use of online stores

Keywords: Electronic commerce, consumer behavior, customer retention, unplanned purchases, web customers

Suggested Citation

Koufaris, Marios and Kambil, Ajit and LaBarbera, Priscilla Ann, Customer Retention and Unplanned Purchases on the Web (October 1999). Information Systems Working Papers Series, Vol. , pp. -, 1999. Available at SSRN: https://ssrn.com/abstract=1288445

Marios Koufaris (Contact Author)

Zicklin School of Business, Paul H. Chook Department of Information Systems and Statistics, Baruch College - The City University of New York ( email )

One Bernard Baruch Way
Box B 11-220
New York, NY 10010
United States

HOME PAGE: http://blogs.baruch.cuny.edu/mkoufaris

Ajit Kambil

Deloitte Services LP ( email )

200 Berkeley Street
Boston, MA 02116
United States

HOME PAGE: http://www.kambil.com

Priscilla Ann LaBarbera

affiliation not provided to SSRN

No Address Available

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