A Study Of E-Commerce Companies On The Behavioural Economics Of Discounting

Manav-Thakkar & Om Shukla, Symbiosis-Law-School, -Hyderabad

ABSTRACT

Behavioural economics is the study of how factors unrelated to the product itself affect a customer's purchasing decisions. These traits might be interpersonal, social, cultural, cognitive, or physiological. Making ensuring that one's company is picked over a rival is the main objective of marketing. Behavioural economics enhances marketing initiatives by revealing the traits that affect consumer choices. This paper aims to help readers comprehend two behavioural aspects of customers' and competitors' reactions to online transactions, namely e-satisfaction and e-loyalty. The study seeks to comprehend the following: the behavioural factors that affect consumer attitudes, preferences, and choice; the behavioural factors that affect utility and customer satisfaction; and potential firm strategies based on a thorough analysis of the behavioural factors that influence consumer decisions and the heuristics employed by consumers. This paper aims to give readers a better understanding of two behavioural aspects of customer and rival responses to online transactions, specifically e-satisfaction and e-loyalty. The study is noteworthy for how it analyses Indian e-commerce using behavioural economics concepts. One of the biggest e-commerce marketing events in India tries to incorporate behavioural insights. Given that India's e-commerce sector is expected to grow, the study report provides unique insights into the aggressive pricing tactics used by e-tailers as well as their viability. The relationship between discounting and behavioural economics is the main topic of this study.

Keywords: Behavioural economics, behavioural factors, consumers, e- satisfaction, e-loyalty, e-commerce, discounting, strategies, online transactions, competition