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ABSTRACT
As more and more consumers become part of the net population, retailers and manufacturers as well as dot-com storefronts are touting consumers by providing an ever-increasing amount of product information. Their long-term survival and profitability may be determined by how much and how well their product information is presented to and processed by the consumers. By combining both the traditional and structural approaches to the information-overload phenomenon, this study investigates the impact of Web site information on consumer choice and psychological states in an on-line environment. Varying the number of alternatives and attributes (traditional measure) and attribute level distribution across alternatives (structural measure), this study asks subjects to choose the best (dominant) CD player in a given set. Their subjective states such as satisfaction, confidence, and confusion are also measured. Results show that the number of attributes and attribute level distribution are good predictors of the effect of information overload on consumer choice. In addition, the study finds that online information overload results in less satisfied, less confident, and more confused consumers. Implications and suggestions for future research are provided. © 2004 Wiley Periodicals, Inc.
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INTRODUCTION
For several decades, it has been of great concern for marketers and researchers to determine the amount of information that consumers can process effectively within a limited cognitive capacity. The basic premise of this concern is that if consumers are presented with too much information at any given time, they become overloaded and they make poorer and less effective decisions. However, there have been debates over how best to define and measure the amount of information, leading to inconsistent conclusions among researchers about the effect of information overload on consumer decision making (Huang, 2000; Hwang & Lin, 1999; Jacoby, Speller, & Berning, 1974; Jacoby, Speller, & Kohn, 1974; Keller & Staelin, 1987; Malhotra, 1982a; Malhotra, Jain, & Lagakos, 1982; Russo, 1974; Summers, 1974; Wilkie, 1974).
The information-rich nature of the on-line environment can easily become a trap for information overload to occur, as more and more consumers become part of the Internet population and Web sites emerge as the key carrier of information for business transactions and marketing communication. In their efforts to attract consumers, retailers and manufacturers strive...