Title: Global Perspectives and Emerging Dimensions of Multidisciplinary Research
Chief Editors: Dr. Jagdish Kumar Sahu and Ms. Machado Sneha John
Associate Editors: Dr. Sree Lakshmi Ammanamanchi and Dr. Divya R. Patel
Co-Editors: Mr. Hruthik J. R and Dr. Shishira Srinivasa
ISBN: 978-93-7183-027-0
Chapter: 6
DOI: https://doi.org/10.59646/833/06
Authors: Dr. Sanjay Prasad, and Dr. Deepali amb Prasad
Abstract
Growth of digital markets has changed consumer decision making processes in many ways by offering access to more products, more product recommendations, dynamic pricing, online reviews, and online advertising. The paper delves into the role of behavioural economics in the context of understanding consumer decision-making in digital markets, specifically focusing on the psychological, cognitive and contextual drivers of consumer decision-making. The research design is mixed-method, the quantitative data is collected from consumer’s purchasing patterns and digital market interaction while the qualitative data is collected by performing structured interviews with consumer and digital marketing professionals. Not all consumers make rational decisions because cognitive biases, social proof, and personalized recommendations all influence consumers’ choices. Digital platforms can sway consumer decision-making by leveraging targeted advertising, recommendations, discounts, and personalized content. Behavioral strategies can be effective at making things easier, but can also lead to issues such as impulsive buying, internet privacy, and manipulative behaviors. The paper also presents strategies that could encourage consumers to make more informed and responsible choices, such as better transparency of the digital platforms, consumer awareness, ethical application of behavioural techniques and enhanced consumer data protection. The study looks at the connection between behavioral economics and consumer decision-making and how psychological and behavioral consumer behavior factors into more and more complex digital markets. The analysis is applicable for consumers, businesses, policymakers, and digital platforms to better understand consumers’ buying habits while keeping transparency, fairness, and consumers’ autonomy. The findings make a valuable addition to the body of research on behavioral economics and digital consumer behavior by offering insights into how behavioral principles could help to explain and influence behavior in today’s digital context.
Keywords: Behavioral economics, Consumer decision-making, Digital markets, Cognitive biases, Consumer behavior, Digital platforms, Nudging, Online purchasing, Consumer psychology, Digital marketing