Effects of information quantity and diversity on consumers under complex uncertainty

Abstract

This paper presents a synthesized theoretical framework based on rational updating to predict the impact of information acquisition on consumers facing complex uncertainty. A larger number of information pieces obtained, and greater consistency across sources are found to increase a consumer's propensity of taking the optimal action. Hypotheses from the theoretical model are empirically validated using data from an online survey completed by 303 participants during one week in the early COVID-19 outbreak. Findings from this research have significant implications for government and business organizations in anticipating consumers' actions and developing communication strategies when operating under catastrophic events with complex uncertainties.