Transforming Consumer Decision Making in E-Commerce

Abstract

To facilitate online consumer decision making, a number of e-commerce businesses are augmenting their Web site features. The Web-based decision support for consumers is often provided by eliciting consumer preferences directly or indirectly to generate a set of product recommendations. The software that captures consumer preferences and provides recommendations is called a Web-based decision support system (WebDSS). It is important for WebDSS to support consumers’ decision strategies. These decision strategies could be compensatory or non-compensatory in nature. Based on a synthesis of previous research, the authors argue that compensatory based WebDSS are perceived by consumers to be better than non-compensatory WebDSS in terms of decision quality, satisfaction, effort, and confidence. This chapter presents a study that examined the level of online support provided to the consumers’ execution of compensatory and non-compensatory strategies. The results based on investigating 375 e-commerce websites indicate that moderate levels of support exists for consumers to implement non-compensatory choice strategies, and virtually no support exists for executing multi-attribute based compensatory choice strategies. The results of this study suggest that there is an opportunity in waiting for e-commerce businesses to implement compensatory WebDSS to improve the decision making capabilities of their consumers.