Abstract
Based on traditional rational consumer theories about beliefs preceding intent to act and knowledge preceding behavior, this study proposed, and empirically tested, a hierarchical path model of decision making in the online environment, focusing on the Internet's role in two decision stages: pre-purchase search and evaluation, and actual purchase. Both direct and indirect effects were posited in the sequential model using four Internet related variables: pre-purchase search beliefs, purchase beliefs, actual pre-purchase search, and actual purchase.
The empirical test was conducted among consumers in the United States and India with 291 respondents taking the online survey (186 for the United States, 105 for India). For both U.S. and Indian respondents, each conceptualized stage of online decision making was significantly impacted by the stages preceding it, either directly or indirectly. In terms of direct effects, an antecedent Internet belief variable (pre-purchase search beliefs) impacted a consequent belief variable (purchase beliefs), and an antecedent action variable (pre-purchase search) impacted a consequent action variable (purchase). Further, the consequent belief variable (purchase beliefs) impacted the immediately following antecedent action variable (pre-purchase search). In terms of indirect effects, all antecedent variables impacted consequent variables at each stage of the model.