DECA Sports and Entertainment Marketing Practice Exam

What term describes individuals who start online purchases but do not complete them?

1. Abandoned cart

2. Shoulder period

3. Sales funnel

4. Conversion rate

The correct answer is: Abandoned cart

The term "abandoned cart" accurately describes individuals who initiate an online purchase by adding items to their shopping cart but do not proceed to complete the transaction. In e-commerce, tracking abandoned carts is crucial because it indicates potential lost sales opportunities. Businesses analyze this data to understand consumer behavior and enhance their marketing strategies. For instance, when a customer adds products to their cart but leaves the site, it may suggest disinterest in completing the purchase, perhaps due to high shipping costs, a complicated checkout process, or a change of mind. By identifying these factors, retailers can implement targeted strategies, such as follow-up emails or discounts, to encourage customers to return and finalize their purchases. The other terms listed do not refer specifically to this behavior. A "shoulder period" typically pertains to a time of increased consumer activity or demand. The "sales funnel" describes the stages a customer goes through before making a purchase, while "conversion rate" measures the percentage of visitors who complete a desired action, such as making a purchase, but does not specifically address abandonment. Therefore, "abandoned cart" is the correct term to focus on in this context.