Implications of the Digital Economy on Consumer Behavior: Theoretical and Empirical Approach

Abstract

This study examines the implications of the digital economy on consumer behavior, it examines a bi-dimensional argument from theoretical and empirical approaches. It lays a foundation for all rational choice explanations and individual preferences, beliefs and constraints in the digital age.  Literature reviewed indicated that the digital age is a determinant for consumer's preferences influenced by electronic consumptions, powered by internet platforms. Findings suggest that consumers are primarily influenced by the quality of information or service quality and subsequently influenced by customer ratings and overall rankings. The final model on consumer responses is to provide comprehensive discussions on the various stages of consumer behaviour, and specifically, its speed and access on the different stages in the decision-making process. Recommendations of this study: individuals and users must collate information targeting socioeconomic growth goals – greater space for higher innovations, responsible business, aimed a trisks reduction in the digital economy. Regulatory authorities must effectively create an environment for achieving these goals.