How Does Information Overload Affect Consumers’ Online Decision Process? An Event-Related Potentials Study

Abstract

One of the advantages of e-retailers is their capability to provide a large amount of information to consumers. However, when the amount of information exceeds consumers’ information processing capacities, it will lead to worse decision quality and experience, causing the information overload effect. In this study, the event-related potentials (ERPs) were applied to examine the hidden neural mechanism of the impact of information overload on consumers’ decision processes. Behavioral data showed that people would spend more time making decisions when faced with information overload. Neurophysiologically, consumers would invest less attentional resources in the high amount of information (HAI) condition than those in the low amount of information (LAI) condition and lead to less positive P2 amplitudes. The HAI condition would increase decision difficulty than would the LAI condition and result in smaller P3 amplitudes. In addition, an increased late positive component (LPC) was observed for the HAI condition in contrast to the LAI condition, indicating that consumers were more inclined to have decision process regret when consumers were overloaded. We further investigated the dynamic information processing when consumers got over information overload by mining the brain’s time-varying networks. The results revealed that during the decision process and the neural response stage, the central area controlled other brain regions’ activities for the HAI condition, suggesting that people may still consider and compare other important information after the decision process when faced with information overload. In general, this study may provide neural evidence of how information overload affects consumers’ decision processes and ultimately damages decision quality.