Examining online purchase decision calculus: The mental accounting theory perspective

Abstract

To enhance online sales, vendors need to understand the purchase decision calculus of their customers. Using the perspective of mental accounting theory, we conduct three studies to understand the value-driven purchase decision calculus of potential customers and repeat customers, the differences between the purchase decision calculus of potential and repeat customers, and to understand the role of transaction experience (no. of purchase) on repeat customersa?? repurchase decision-making. We found that customer perceived value plays a critical role in purchase decisions and the purchase decision of less experienced repeat customers is additionally influenced by factors such as perceived price, convenience and pleasure. The research contributes to theory by developing a theoretically based value-driven model of online customer choice and decision-making. The research would be useful for online vendors in developing suitable strategies for increasing sales with potential and repeat customers.