Critically evaluate how the unique features of the Ecommerce technology and environment influence consumer decision-making (cognitive and habitual).
Cognitive Decision Making (Deliberate Decision Making)
- A cognitive purchase decision is the outcome of a series of stages that results in the selection of one product over competing options
- The Rational Perspective:
- According to this view, people calmly and carefully integrate as much information as possible with what they already know about a product, weigh the pluses and minuses of each alternative, and arrive at a satisfactory decision
- The economics of information perspective assumes that we collect just as much data as we need to make an informed decision
Steps in the Cognitive Decision-Making Process
- These are the basic four steps in the cognitive decision making process (Rational Perspective)
- Problem recognition o Information search o Evaluation of alternatives o Product choice
Stage 1: Problem Recognition
- Occurs when consumer sees difference between current state and ideal state (desire)
- Every problem requires a solution. Problems can arise in two different ways:
- Need recognition: Actual state declines o Opportunity recognition: Ideal state moves upward
Stage 2: Information Search
The process by which we survey the environment for appropriate data to make a reasonable decision.
- Once we know we have a problem, we search out how we can solve the problem.
- Prepurchase or ongoing search
- Information search before Purchase (prepurchase search). Some people just enjoy searching information – e.g. the purchase is not immediately forthcoming (ongoing search)
- Internal or external search o Internal searches are cognitive (based on our own memory).
External sources come from other sources o Online search and cybermediaries
- Search engines, specialized websites and apps (cybermediaries) to help narrow and filter the options that are available.
Step 3: Evaluation of Alternatives
- Evoked Set o The alternatives a consumer knows about is the
- Consideration Set o The ones actually considered make up the consideration set.
Step 4: Product Choice
A: Product choice
- Complexity of the choice settings/products o Human decisions with two or more choice options
- Feature creep is the complexity of features that products provide o It is a paradox: we buy and return products because of their complex and various features.
B: Postpurchase evaluation
- Data collection, surveys, design of experiments (behavioural experiments, neuroscience experiments – e.g. functional magnetic resonance imaging (or fMRI) and neuromarketing)
Information load: Online Decision
- Organisation and optimisation of information (websites, apps)
- Intelligent agents o Collecting information (behaviour) AI, software, algorithms
- Search engines/ Search engine optimization
procedures companies use to design the content of Web sites and posts to maximise the likelihood that their content will show up when someone searches for a relevant term.