How Unique Features of E-Commerce Technology and Environment Influence Consumer Decision-Making

Critically Evaluate How the Unique Features of the E-commerce Technology and Environment Influence Consumer Decision-Making (Cognitive and Habitual)
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Critically Evaluate How the Unique Features of the E-commerce Technology and Environment Influence Consumer Decision-Making (Cognitive and Habitual)
Introduction
E-commerce offers a wealth of product/service information that buyers may utilize to make online or offline purchases. Consequently, e-commerce may have a significant impact on how consumers make decisions. On the other hand, more businesses now recognize that the transition in consumer behavior is an inevitable trend and have altered their marketing plans accordingly. Recent studies have shown that online purchasing, particularly business-to-consumer (B2C) commerce, has increased and become more popular among people. Various factors contribute to the rapid growth of online purchasing, but e-advantages commerce is the primary one. E-commerce, in the first place, provides customers with a variety of conveniences. Consumers do not always search for information concerning a particular product or service, especially in the advent of internet technology which allows easy information access and thus offers the opportunity to compare and contrast different e-commerce sites’ product offerings and price tags to establish the ideal choice. In order to comprehend this, this essay discusses how e-commerce capabilities, as well as the business landscape, impact clients’ decision-making by exploring the conceptual background of these e-commerce features. Likewise, this paper defines and compares cognitive and habitual decision-making and how e-commerce features and the business landscape impact the two forms of customer decision-making models.
Theoretical Background
Before the e-commerce establishment, products sale and marketing were mainly mass-marketing and a salesforce-centered process. Marketers perceived customers as submissive targets of advert campaigns and branding meant to impact their long-term goods discernment and prompt buying conduct. Companies used well-insulated routes to sell their goods. Geographical and social limitations prohibited consumers from thoroughly searching for the best deal and quality. Consumers may need to be aware of pricing, costs, or fees, resulting in profitable information asymmetries for the selling company. As a result of e-commerce technologies, merchants can create a consumer database and use this data more efficiently to segment consumers (Laudon & Traver, 2020). In addition, online traders can utilize this information to create new data asymmetries, promote their brand products’ ability, design premium pricing strategies for high-quality service, and enforce market segmentation into infinite sub-groups numbers, each getting different pricing.
Ecommerce allows commercial dealings to surpass cultural and national borders more expediently and economically than traditional trade. One feature of e-commerce is its ubiquity which means its availability is everywhere. Hence this frees the market from physical space limitations and makes it likely to buy from anywhere. From a consumer perspective, ubiquity lessens transaction expenses which are the expenses of market participation. At a more comprehensive level, the e-commerce ubiquity reduced the cognitive energy needed for marketspace transactions. Another feature is that the technical benchmark for operating e-commerce is a universal benchmark that is globally shared. In comparison, most traditional trade technologies vary from one country to the next. Ecommerce universal technical canons immensely reduce market entry expense which is the expense traders pay to trade in a given market. Similarly, universal principles lessen search costs for buyers, which is the effort needed to get suitable goods. E-commerce technologies have the potential to provide a wealth of information that is significantly greater than that of traditional media. E-commerce technology provides interaction, allowing two-way communication between consumers, consumers, and merchants (Laudon & Traver, 2020). By tailoring their marketing messages to a person’s identity, hobbies, and previous consumption, businesses may target their marketing messages to certain persons thanks to e-commerce technologies. These days, this is accomplished in milliseconds, and a profile-based advertisement appears.
The main element of customer behavior is the decision-making part. However, how buyers assess and select goods and the thorough process they put into their selections differ immensely, contingent on aspects like the extent of novelty or peril linked to the decision. A cognitive buying decision results from various phases in choosing one good over com...