Analysing Effects of Information Overload on Decision Quality in an Online Environment

Internet is empowering customers with rich information about product attributes and experiences of others. Companies often believe that their long-term profitability may be determined by how their product information is presented and processed by the consumers. But people shopping online often face difficulty in processing large combinations of product attributes within a limited cognitive capacity. This increase in amount of information challenging decision making quality and thus decision maker experiences 'Information overload' which may result in dysfunctional consequences such as cognitive fatigue and confusion which in turn effect decision quality. Searching for product information on the Internet is the most important predictor of online buying behavior. The differences in customer search for diverse products online have important implications on marketing practices. The present research focuses on explaining the effects of 'information overload' on the choice and purchase decisions for different product type. The findings of research has implications for information providers, retailers and researchers interested in improving quality of human decision making.