Impact of E-commerce Technology on Consumer Decision Making

This report analyzes the unique features of e-commerce technology and environment and how it influences the two types of consumer decision-making. It explores the process of customer decision-making and the impact of e-commerce technology on it. The report also discusses the factors affecting the decision-making process and the benefits and features of products and services.

E-commerce

Table of Contents
Introduction......................................................................................................................................2
Explore the unique features of the E-commerce technology and environment......................2
Define and compare the two types of consumer decision-making.........................................3
critically evaluate how the features of the E-commerce technology and environment influence
the two types of consumer decision-making. ........................................................................5
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

Introduction
Internet is developed since last two decades as digital economy that is driven by use of
information technology. With the development of internet there is rapid increase in the number
of web users that is leading to development of new technology and promotion of product and
services through web site. Present report is based on analysing the unique features of e
commerce technology & environment (Maison, 2018) . Further there is analysis of the process of
customer decision making that can assist in evaluating the way e commerce technology &
environmental can posses a influence on the process of customer decision making.
Explore the unique features of the E-commerce technology and environment
There are some of the unique features of e commerce technology that is related with the way it is
functioning in the global changing environment. Some of such aspects are discussed below:
Global reach: E commerce is a aspect that helps business transactions on cross country to be
more convenient & effective as compared to the traditional commerce (Hansen, 2017) . In case
of e commerce the potential Market scale is equivalent to the overall network size of the world's
population.
Universal standards: e commerce technology is a unusual feature that is technical standard of
internet it is used for carrying of the technical standards that is shared by all countries across the
world standard.
Interactivity:
Information density: Density of information has improved with the number of marketers
business quality information and customers, the electronic commerce technology, processing
cost, storage, reduction of information collection and communication (Acevedo, 2018). The
seemliness and accuracy of information technology may increase greatly if information is more
useful.
Customisation: E commerce technology helps business organisations in having proper
customisation. Business have to be adhered as per name, past purchase message and marketing
message that is associated to specific individual. The e commerce technology allow for custom.
Merchants can change the products or services based on the previous behaviour or past
purchasing preferences.
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Social technology: It is related to when the individual us pitting the information with respect to
product or services on social media sites. In this there is sharing of product on various social
media sites that can help in the process of marketing and promotion on such social media sites.
Commercial channels: In present times many organisations are using and setting up online
information & marketing services that is to be access by the ones who have signed up the
services and paid a monthly fee. Such channels are offering information, education, libraries,
sports, references, shopping services, e mail and other opportunities.
Define and compare the two types of consumer decision-making
Consumer behaviour is the study of process that involves when individuals or groups select,
dispose or purchase of products services to satisfy the desires and needs of people.
Decision making is a high level cognitive process that is related with memory, attention and
perception.
Habitual customer description making: It is a process that is related with customer
loyalty where customer has consistent and positive experience related to product, form of brand,
customer habitual buying behaviour takes place when there is involvement of differences and
between brand are small. In this case customers do not form or develop a strong attitude towards
a brand.
Habitual is associated when customers are acting little carriers of habit as they are
automatically repeating the past behaviour with little regards to their present outcome or goals.
Habits are preponderant to respondents that are quick to activate in memory over various other
alternatives (Schmidt, 2019). Habits are regarded as prepotnet of responses that are quickly
activated in the memory over various other alternatives that slowly modify the memory trace.
Habits are learned by customers largely as they pursue goals in the daily life. Habits are also
broken by use of strategic deployment of self control and efficient;. Habits posses a influence on
the post hoc inferences of buying behaviour of people that they are making about their behaviour
in long term.
consumer decision-making cognitive: Cognitive customer behaviour s the way buyers
are thinking and behaving while making the purchasing decisions. Customers can buy fr
themselves, family or business. It is a model that expands the way variables and organism can
posses a impact on the responses and overall outcomes of purchasing decision,
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This is based on a specific model that is broken down in two sections that includes
analytics & perspective. Perspective model is used for providing a guideline that can help in the
structure behaviour and further determination of the way customer decisions can be predicted
based on the outcome of factors that includes beliefs and attitudes. In this process there is
decision making that takes place in the form of key stages in the process that includes problem
recognition, searching of information. Evaluation of alternatives, selection of particular
alternative and then reaching to specific decision. The major analytical models that are part of
this theory involves the theory of buyer behaviour and the customer decision making model.
(Source; COGNITIVE CONSUMER BEHAVIOUR MODELS, 2020)
(Source; COGNITIVE CONSUMER BEHAVIOUR MODELS, 2020)
Analytical model are used for identification of the range of factors and further assessment of the
way decision are taken by customers. Buyer behaviour model depicts the way it can be helpful in
analysing the different types of respondents which may posses a impact on the purchasing
behaviour.
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critically evaluate how the features of the E-commerce technology and environment influence
the two types of consumer decision-making.
There are some of their aspects of e commerce technology that has a impact in the process of
customer decision making. Such as it includes:
Internet shopping:
Online retailers can improve the information supporting and enhance the detailed product
information and further using internal search engine for the purpose of enhancing the efficient
process of information searching (Dixit, Alavi and Ahuja, 2020). At the evaluation stage,
customers ate willing to think about the reputation of e commerce website and payment security
at the purchases stage.
Convenience: Internet offers high amount of convince to shoppers that is main reason of
shopping online as agreed by customers and researchers. Customers can shop online and make
payment that helps them in browsing 24 hours a data as per their needs.
Habitual customer description making: In case of Habitual customer description
making the main factors that are affecting the decision making of customers that includes the
past experience and the level of satisfaction that was achieved while the products was used in the
past scenario. Apart from this other factor that may posses a impact on it will include
consumer decision-making cognitive: The consumer decision making process in this is
going through five major stags. In this there is no as such past experiences or previous
preferences that are involved or affecting the way customers are taking their decisions (Pezeshki
and et.al., 2019). For this purpose there is need to make evaluation based on aspects that includes
problem recognition where firstly the problem is to be identified as per need, further there is
information searching where all the available alternatives have to be evaluated and further
examined to understand its relevance. Based on different factors a particular aspects is to be
selected and then further has to be used to reach to relevant decisions.
Featured and benefits: While making decisions customers have to understand the benefits and
features of products and services. It is mainly found on sales page, description and brochures.
Price: It is also one of the aspect that is affecting the choice of products. Generally every
customer is willing to go for products that is offering lower price and maximum level of
satisfaction.
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While analysing the available alternatives customers are conducting research there is need to
discover the brands who are offering similar solutions (do Paço, Shiel and Alves, 2019). At this
stage the customers decision get influenced by the interaction with the brand. Customer decisions
are affected by comparing and contrasting benefits and feature of particular product or brand.
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Conclusion
It is concluded from the above made analysis that with the advent of e commerce
technologies and internet the overall shopping behaviour has changed for customers. Now,
customers are willing to focus on using internet shopping as a tool for fulfilment of their
demands. At the evaluation stage customers are thinking and working towards fulfilment of their
demands through such e commerce sits and online availability of products. There are many
factors that are posing a impact on the the process of customer decision making to select a
physical or online available platform for fulfilment of their purchasing needs.
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Reference
Books & Journal
Pezeshki and et.al., (2019). Cognitive structures of Iranian senior tourists towards domestic
tourism destinations: A means-end chain approach. Journal of Hospitality and Tourism
Management, 39, pp.9-19.
do Paço, A., Shiel, C. and Alves, H., (2019). A new model for testing green consumer
behaviour. Journal of cleaner production, 207, pp.998-1006.
Maison, D., (2018). Qualitative marketing research: understanding consumer behaviour.
Routledge.
Hansen, T., (2017). The moderating effects of financial broad‐scope trust on consumer
knowledge, cognitive effort, and financial healthiness. Journal of Consumer
Behaviour, 16(2), pp.161-175.
Acevedo, C., (2018). Consumer behaviour and advertising management. Scientific e-Resources.
Schmidt, A.P., (2019). The impact of cognitive style, consumer demographics and cultural
values on the acceptance of Islamic insurance products among American
consumers. International Journal of Bank Marketing.
Dixit, J.S., Alavi, S. and Ahuja, V., (2020). Measuring Consumer Brand Perception for Green
Apparel Brands. International Journal of E-Business Research (IJEBR), 16(1), pp.28-46.
Online
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