Digital Consumer Behavior: Online Decision Journey, Social Media Influence and E-WOM (Overview) Questions

Question 1

Define e-WOM.

Accepted Answer

e-WOM (electronic word of mouth) is online communication among consumers about products/services through reviews, comments and posts.

Question 2

What is social proof?

Accepted Answer

Social proof is the tendency to use others’ actions (ratings, likes, reviews) as a cue for deciding what to buy.

Question 3

What is cart abandonment?

Accepted Answer

Cart abandonment is when a customer adds items to the online cart but does not complete the purchase.

Question 4

State any one online trust cue.

Accepted Answer

A clear return/refund policy is one online trust cue.

Question 5

Who is an influencer in digital marketing?

Accepted Answer

An influencer is a person who affects followers’ opinions and purchase decisions through content, credibility and reach on digital platforms.

Question 6

State one ethical issue in digital marketing.

Accepted Answer

Privacy and tracking without proper consent is one ethical issue in digital marketing.

Question 7

Explain the stages of the online consumer decision journey (any three stages).

Accepted Answer

Online decision journey stages include:

- **Awareness/trigger**: ad or influencer post creates interest.
- **Consideration/search**: consumer searches and compares options.
- **Evaluation**: checks reviews, ratings, features and price.
- Purchase and post-purchase (review/e-WOM).

A consumer may loop between search and evaluation before buying.

Question 8

Explain e-WOM and mention any three reasons why it is important in online buying.

Accepted Answer

**e-WOM** includes online reviews, ratings and comments shared by consumers.

Importance (any three):
- More **credible** than ads for many users.
- Reduces **perceived risk** (quality, delivery).
- Helps compare alternatives quickly and affects final choice.

| Type of e-WOM | Impact |
|---|---|
| Positive | builds trust and increases trial |
| Negative | damages reputation and reduces sales |

Question 9

Explain social media influence on consumer behavior (any three points).

Accepted Answer

Social media influences consumers by:

- Triggering **need recognition** through trends and lifestyle content.
- Providing information via short videos, posts and communities.
- Creating **social proof** (likes, comments) and normative pressure (FOMO).

Thus, social media affects search, evaluation and post-purchase sharing.

Question 10

List online trust cues that reduce perceived risk (any three) and link each cue to a risk.

Accepted Answer

Online trust cues and risks (any three):

| Risk | **Trust cue** |
|---|---|
| Payment risk | **secure gateway/SSL/OTP** |
| Quality risk | **verified reviews** + warranty |
| Delivery risk | clear delivery timeline + tracking |
| After-sale risk | easy **returns/refunds** |

These cues reduce uncertainty and increase purchase confidence.

Question 11

Explain retargeting and state any three benefits for marketers.

Accepted Answer

**Retargeting** is showing ads again to users who previously visited a website/app or interacted with a product.

Benefits (any three):
- Improves **recall** and brings users back to complete purchase.
- Reduces **cart abandonment** by reminding offers.
- Increases **conversion rate** by targeting warm leads.

Flow (write): Visit/interest → Retargeted ad → Return → Purchase

Question 12

State any three reasons for online cart abandonment and suggest measures to reduce it.

Accepted Answer

Reasons for **cart abandonment** (any three):
- Unexpected **extra charges** (shipping/taxes)
- Complicated **checkout** process
- Low **trust** (payment/security concerns)

Measures:

| Problem | Measure |
|---|---|
| extra charges | show full price early |
| checkout friction | simplify steps + guest checkout |
| low trust | SSL/OTP + clear returns |

These reduce friction and improve conversions.

Question 13

Explain the online decision journey with a neat flowchart and a suitable example.

Accepted Answer

The **online consumer decision journey** is the sequence of digital touchpoints from awareness to advocacy.

### Stages
1) **Awareness/trigger** (ad, influencer, friend share)
2) **Consideration/search** (Google/YouTube, marketplace search)
3) **Evaluation** (ratings, reviews, comparison)
4) **Purchase** (payment, delivery/returns)
5) **Post-purchase** (review, complaint, repeat purchase)

Flowchart (draw/write):
Awareness → Search → Evaluate (e-WOM) → Purchase → Post-purchase (review/e-WOM)

Example (smartwatch): Instagram reel → YouTube review → compare prices → buy during sale → post rating.

### Conclusion
Unlike a straight funnel, consumers often loop between search and evaluation before buying.

Question 14

Explain influencer marketing: why it works, risks involved, and ways to ensure ethical practice (use a table).

Accepted Answer

Influencer marketing uses creators as **opinion leaders** to affect follower attitudes and purchase decisions.

### Why it works
- **Trust** and relatability
- Strong identification (followers want similar lifestyle)
- Wide reach and engagement

### Risks
- Fake followers/engagement
- Mismatch with brand values
- Hidden sponsorship (ethical issue)

| Area | **Keyword** | Practice |
|---|---|---|
| Ethics | **disclosure** | clearly mark paid partnerships |
| Authenticity | **fit** | choose influencers aligned with brand |
| Trust | **evidence** | promote honest reviews, not false claims |

### Conclusion
Ethical and transparent influencer campaigns build long-term trust and reduce reputational risk.

Question 15

Discuss privacy and ethical issues in digital consumer behavior and suggest measures for responsible marketing.

Accepted Answer

Digital marketing uses consumer data for targeting and personalization, which raises privacy and ethical concerns.

### Key issues
- Tracking without **consent** (cookies/app permissions)
- Misuse or leakage of **personal data**
- Over-targeting/spam and manipulative nudges
- Misleading ads/influencer promotions

### Responsible measures
- Use clear **privacy policies** and obtain informed consent.
- Collect only necessary data (data minimisation).
- Provide opt-out options and secure storage.
- Ensure truthful claims and sponsor disclosure.

| Principle | **Keyword** | Example |
|---|---|---|
| Consent | **permission** | allow users to choose tracking |
| Transparency | **clarity** | explain why data is collected |

### Conclusion
Responsible data use builds trust and supports sustainable digital relationships.

Digital Consumer Behavior: Online Decision Journey, Social Media Influence and E-WOM (Overview)

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