E-Commerce Technology and Consumer Decision-Making

E-Commerce Technology and Consumer Decision-Making
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Introduction
E-commerce technology and the environment have developed rapidly recently and significantly influence consumer decision-making. The unique features of this technology and setting, such as the ease of access to products and services, the ability to compare prices and features, and the abundance of consumer reviews, can profoundly impact how people decide what to buy. This paper will explore the unique features, discuss the two kinds of consumer decision-making (cognitive and chronic), and critically evaluate how the E-commerce environment influences both.
Theoretical Background
The technology and atmosphere of online retailing, often known as e-commerce, have several distinctive characteristics that set them apart from traditional storefront retailing. Laudon and Traver (2020) highlight that one of these characteristics is the ability to manage massive amounts of data. This data consists of customers, orders, and products, among others. This information needs to be able to be kept in a manner that is both secure and efficient, and the platform itself needs to be able to scale to accommodate the growing needs of the business.
Equally, the capacity to handle financial transactions is an unavoidable requirement for e-commerce platforms. This stage encompasses the processing of payments made by customers and the act of making payments to third-party vendors for the purchase of products and services. The platform needs to be able to integrate with a variety of payment processors, and it also needs to be secure to protect not just the company but also its customers (Al‐Samarraie et al., 2019). Another aspect is the capacity to exercise control over the inventory. Exercising control over the list includes managing relationships with suppliers, maintaining an accurate stock count, and fulfilling customer orders. The system needs to be able to communicate with other inventory management systems that are already in place, and it also needs to be scalable for it to be able to keep up with the growth of the organization.
Furthermore, the capacity to assist customers comes with e-commerce platforms. Functionality such as live chat, email assistance, and commonly asked questions should be included here (FAQs) (Gupta & Dhir 2020). The platform must be able to scale along with the growth of the company and must be user-friendly for both the company's customers and the representatives who give customer care. Additionally, the platform must be able to scale together with the growth of the organization.
The two types of consumer decision-making relevant to this discussion are cognitive and habitual. When consumers are aware of the issue and deliberately contemplate the different solutions available, they engage in cognitive decision-making. As a result of the fact that clients want to be sure that they are selecting the best alternative to meet their requirements, the decision-making process that arises as a direct consequence of this kind of circumstance is often slow and careful (Klein & Sharma, 2022). Consumers engage in habitual decision-making when they have a collection of favorite brands or products that they frequently acquire without giving it any conscious attention. This decision-making is often much quicker than others because buyers do not have to spend time pondering their various options.
When compared to one another, these two approaches to choosing courses of action both have qualities that both contribute to and hold them back. Cognitive decision-making can result in better customer choices since it requires them to consider both the positives and negatives of each available alternative before making a final choice (Laudon & Traver, 2020). On the other side, it could take a significant amount of time, and if there are many alternatives to pick from, it could be challenging to make a decision. Compared to other choices, those made out of habit are completed more rapidly and with less mental labor. On the other hand, if clients are unaware of other, more appealing alternatives that are also available, they won't find the best choice among the available options.
Moreover, when determining the strategy to be utilized in decision-making, it is of the utmost importance to determine the specifics of the individual consumer and the circumstances. Before settling on a choice, it would be beneficial to give oneself sufficient time to explore all possibilities at one's disposal thoughtfully (Lin & Hajli, 2019). In other events, it may be more advantageous for you to go with a tried-and-true solution with a long history of upholding its reputation as an effective one. Ultimately, it is up to the individual customer to determine which approach to decision-making will be the most effective to fulfill the prerequisites of their circumstance.
E-commerce and consumer decision-making
Both cognitive and habitual decision-making patterns can be influenced significantly by the specific characteristics of the technology and environment of electronic commerce. The designs could have significant implications for the future of business. As a consequence of this, consumer behavior might drastically change (Mishra & Koles, 2021). The primary ...