Digital Consumer Behavior in E-commerce: A Study of Amazon and Temu's Customer Purchase Decision-Making Processes in the UK and the USA

John Ologunebi, Ebenezer Taiwo and Kazeem All

MPRA Paper from University Library of Munich, Germany

Abstract: This research investigates digital consumer behavior in e-commerce through a comparative case study of Amazon and Temu's customer purchase decision-making processes in the UK and USA. As e-commerce continues to revolutionize retail landscapes, understanding the nuances of consumer behavior within digital environments is critical for businesses aiming to optimize marketing strategies and enhance user experiences. This study aims to shed light on how distinct elements such as consumer demographics, perceived value, and user experience influence purchasing decisions on these two platforms. The study utilizes a quantitative approach to gather insights from consumers who actively shop on Amazon and Temu. The survey captures demographic information and purchasing habits, while interviews provide deeper narratives about decision-making motivations and experiences. Key factors being explored include product variety, pricing strategies, brand loyalty, the impact of online reviews, and the role of personalization in the shopping experience. Preliminary findings suggest distinct consumer behavior patterns between the two platforms. Amazon functionalities such as advanced algorithms, extensive product offerings, and established brand trust appear to significantly influence customer loyalty and repeat purchases. Conversely, Temu's focus on low prices, foreign product access, and aggressive promotional strategies resonate particularly with cost-conscious shoppers, especially those in younger demographics keen on exploring new trends. These factors significantly alter how consumers engage with the brands and impact their overall satisfaction and likelihood of future purchases. This research also explores the geographic nuances of consumer behavior, highlighting how cultural differences between the UK and USA shape online shopping preferences and behaviors. The findings indicate that while both markets exhibit a reliance on price competitiveness, UK consumers may prioritize product quality and sustainability over sheer cost, whereas USA consumers display a greater inclination toward convenience and extensive product variety. The outcomes of this study have substantial implications for e-commerce businesses, suggesting tailored marketing strategies that consider the distinctive attributes of each platform and regional consumer preferences. By deepening the understanding of digital consumer behavior, this research contributes to existing literature on e-commerce and provides practical insights for enhancing customer engagement and satisfaction in an increasingly competitive digital marketplace.

Keywords: Digital consumer behavior; Digital marketing strategies; E-commerce trends; Customer Purchase Decision; Digital marketing; Online shopping; Online Buying Behavior; Brand Loyalty; Understanding consumer psychology (search for similar items in EconPapers)
JEL-codes: M30 M31 M37 M39 (search for similar items in EconPapers)
Date: 2024-12-25
New Economics Papers: this item is included in nep-com, nep-dcm, nep-ind, nep-mkt and nep-pay
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