WHY CUSTOMERS DO NOT COMPLETE ONLINE TRANSACTIONS: THE MISSING LINK

The purpose of this study is to investigate the stages of online business that motivate customers to complete online transactions. By using the Technology Acceptance theory, the online businesstransaction model is proposed and tested. The results of our survey of Canadian firms validate the four-stage causal model—Perception, Interpretation, Value Assessment, and Transaction stages. Given the international scope of online business, identification of the stages is important for both scholars and managers, because relatively few customers who visit websites complete transactions, suggesting that at some stage the customer abandons the website. By assessing the stages of their online businesses, managers can determine which stage is most worthy of attention in order to encourage customers to complete online transactions. Managers who understand the stages can attract new customers and serve existing customers more effectively.

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