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People have very little hesitation in spending $3 on a coffee once a week, but when it comes to buying things online, such as virtual goods or services, they are often much more reluctant. There is a block when it comes to buying things online. My question is:

  1. Why is this?
  2. Is there a name for this phenomenon?

Once that is established, then

  • How can someone selling something online (e.g. an online service provider or a software company) get around this and make customers less hesitant when shopping online?
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I read something about this but could never find the paper. Something where people were much more willing to spend money on items they could touch – Ben Brocka Jun 6 '12 at 16:48
However I think your question #3 is a bit big to be included in this one question and should be a separate question once you've identified the effect you're looking for. – Ben Brocka Jun 6 '12 at 16:49
@BenBrocka The new title makes me think of a different question that the original formulation. In the original formulation I thought of going to a book store versus buying a book on Amazon except for cheaper items. The current version of the question seems to be about buying goods that are not physical (not just purchasing physical good via the online medium). Is that the intended question by the OP? In either version, I agree that OP should wait to ask question 3 after receiving answers to 1 and 2. – Artem Kaznatcheev Jun 6 '12 at 16:58
@ArtemKaznatcheev true, they're very related issues but digital goods didn't need to be included (unless that's what was meant) – Ben Brocka Jun 6 '12 at 17:01
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One thing to consider is that it's the norm to pay for coffee, whereas it is the norm for virtual services to be free. So it may not be a matter of virtual vs physical goods, but of what people think is a "fair" price for something based on previous experience. – Jeff Mar 30 at 0:15
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