The Effect of Free Shipping Method on Consumers’ Purchase Decisions / 免運費方案對於消費者購買決策之影響

碩士 / 國立中興大學 / 行銷學系所 / 101 / Free shipping method is when consumers reached a quantity or dollar threshold, specified by retailers, consumers are offered free shipping. Otherwise, they may charge a fixed shipping fee. Free shipping method such as “Buy 2, free shipping” or “Buy NT$1000, free shipping”, are quite common in the market place. The former is called FSQ (Free Shipping Quantity) and the latter is called threshold-based free shipping.

In previous studies, only a handful of studies have examined free shipping. Further, the existing studies restrict to comparing FSQ and threshold-based free shipping. This paper attempts to examine two common free shipping methods-FSQ and threshold-based free shipping, along with product price, pick-up method and limited-time strategy to investigate the effect consumers’ purchase decision. In addition, we examine the mediating effect on consumers’ offer evaluation. We use three experiments to simulate the real online shopping situation. Subjects were asked to read a written scenario describing an incident of shopping online.

In study one, a 2 (free shipping method: FSQ vs. threshold-based free shipping) by 2 (product price: high vs. low) between-subject factorial design was used to test our predictions. The results show that, (1) the free shipping method with "FSQ" compares to "threshold-based free shipping", consumer will have a higher purchase intention. (2) When the product price is "high", the free shipping method with "FSQ"
compares to " threshold-based free shipping" , consumers will have a higher purchase intention; when product price is high "low", there has no significant difference on consumers’ purchase intention.

In study two, a 2 (free shipping method: FSQ vs. threshold-based free shipping) by 2 (pick-up method: one vs. many) between-subject factorial design was used to test our predictions. The results show that, (1)When the pick-up method has only "one" choice, the free shipping method with "FSQ" compares to "threshold-based free shipping", consumers will have a higher purchase intention; when the pick-up method has "many" choices, there has no significant difference on consumers’ purchase intention. (2) Offer evaluation has a mediating effect in the relationship between free shipping method and purchase decision.

In study three, a 2 (free shipping method: FSQ vs. threshold-based free shipping) by 3 (limited-time strategy: present limited-time clearly vs. present limited-time indistinctly vs. absent) between-subject factorial design was used to test our predictions. The results show that when limited-time strategy is " present limited-time clearly", the free shipping method with "FSQ" compares to " threshold-based free shipping" , consumers will have a higher purchase intention; when limited-time strategy is "present limited-time indistinctly", there has no significant difference on consumers’ purchase intention;when limited-time strategy is "absent", there has no significant difference on consumers’ purchase intention.

This paper investigates the common free shipping method, review the research about the related issues, and discuss which free shipping method is better on consumers’ purchase intention. Implications for marketing managers, retailers and future research directions are also discussed.

Identiferoai:union.ndltd.org:TW/101NCHU5402025
Date January 2013
CreatorsYi-Jing Cheng, 鄭詒靜
ContributorsWen-Hsien Huang, 黃文仙
Source SetsNational Digital Library of Theses and Dissertations in Taiwan
Languagezh-TW
Detected LanguageEnglish
Type學位論文 ; thesis
Format126

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