Competition and Consumer Behavior in the Context of the Digital Economy
Author:Elena-Mădălina Vătămănescu, Bogdan Gabriel Nistoreanu and Andreea Mitan
JEL:D18, F12, F68
DOI:
Keywords:consumer protection, competition, digital economy, online purchasing
decision-making
Abstract:
The current paper aims to investigate the relation between competit ion and online
purchasing decision-making, integrating consumer protection awareness and the
corresponding consumer behavior as mediators. The focus is on both subjective and
objective measures related to the level of consumer awareness and action in a fast -growing
competition, potentiated by the digital economy. In order to investigate the relations
between the aforementioned concepts, a questionnaire-based survey was conducted, using a
sample of 257 students from three top Romanian universities. Based upon the theoretical
directions presented in the literature review, a conceptual model was elaborated and tested
by employing a part ial least squares structural equation modeling technique. As the
examination of the structural model indicated, online purchasing decision -making is
indirectly influenced by the high competition in the digital economy, by means of consumer
protection awareness and consumer protection behavior. At this level, the analyzed factors,
namely the competition in the digital economy, the consumer protection awareness and the
consumer behavior with respect to the consumer protection policies, explain over 16% in
the variance of the online purchasing decision-making.