-
Essay / Understanding Online Consumer Decision Making
From the way we communicate and connect with each other, to the way we receive information about the world around us, we are gradually evolving in our daily life online. Shopping could not be an exception with an estimate of almost 2 billion people worldwide purchasing goods and services through online platforms (Statista, 2020). Given the rise of e-commerce globally, it is not surprising that a large amount of literature has been devoted to how individuals make decisions online in order to better predict and describe behavior consumers. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay The notion of online decision-making describes the cognitive process that takes place in a consumer's mind before arriving at a conclusion regarding an online decision. . Scholars have identified several factors that can influence this behavior. Kuhlmeier and Knight (2005) argue that well before considering an online purchase, individuals evaluate the associated risks as well as their level of Internet knowledge. Similarly, a consumer's willingness to purchase goods online is positively affected by the perceived usefulness of the online store, the trust it generates as well as its social presence (Dash and Saji, 2007 ). According to Lai and Wang (2012), the usefulness of online shopping is equal to the amount of added value perceived when shopping online. Trust is essential when making decisions on the web because it builds a relationship between the business and the buyer, which is further strengthened. through a high-quality interface that leads to a pleasant customer experience (Corbitt et al., 2003). The same academic research has drawn attention to how strong retail partnerships, flexible payment methods and 'word of mouth' tactics can also help combat any feelings of distrust around online shopping . Cheung and Lee (2006) also show that the perceived level of trust evoked by the web provider (quality of security controls, perceived effectiveness), as well as factors that provide external certification of the website, can have a considerable impact on consumers' perception of their website. online shopping. One of the fundamental characteristics of online shopping is that individuals are not able to physically evaluate alternative options before finalizing the purchase, nor does the checkout process involve in-person interaction between customers. the buyer and the company. It is therefore not surprising that when making an online purchase, consumers must assess the risk associated with the delivery and returns policy (Martin, 2005), the risk of being exposed to malware and the fear that their personal data be exploited (Constantinides). , 2004, Ernst and Young, 2000). To overcome these concerns, online users generally prefer websites that they consider trustworthy or brands with which they have prior experience (Chen and He, 2003). A notable effort to explore how consumers behave online is the work of Dange and Kumar in 2012. Their academic paper presents a model describing that online purchasing behavior is equally affected by factors internal and external to individuals . External components include, among others, demographic characteristics, socio-economic and cultural status as well as associated marketing activities. In..