IMPACT OF PRICE TRANSPARENCY AND ONLINE REVIEWS ON PURCHASE DECISIONS OF CONSUMER DURABLE GOODS

Abstract

The rapid expansion of digital commerce has fundamentally transformed consumer decision-making processes, particularly in the market for consumer durable goods, which involves high financial commitment and perceived risk. Among the various digital information cues available to consumers, price transparency and online consumer reviews have emerged as two of the most influential determinants shaping purchase decisions. This study empirically examines the extent to which transparent pricing mechanisms and online reviews affect consumer purchase decisions in the consumer durable goods sector. The research adopts a mixed-method research design, combining quantitative survey data with qualitative insights to achieve a comprehensive understanding of consumer behaviour. Primary data were collected from 620 consumers who had purchased at least one consumer durable product through online or omnichannel platforms within the previous twelve months. Structured questionnaires measured perceptions of price transparency, review credibility, review valence, and purchase intention using validated Likert-scale instruments. The quantitative data were analyzed using descriptive statistics, regression analysis, and structural equation modeling (SEM) to examine direct and interaction effects among variables. In-depth interviews further supported the interpretation of behavioural patterns. The findings reveal that both price transparency and online reviews have a statistically significant and positive influence on consumer purchase decisions. While price transparency enhances consumers’ initial trust and perceived fairness, online reviews—particularly those from verified buyers—play a more decisive role in reducing perceived risk and confirming final purchase decisions. The study also demonstrates a strong interaction effect, indicating that consumers exposed to transparent pricing combined with positive and credible online reviews exhibit significantly higher purchase intention compared to those exposed to either factor independently. The study contributes to existing literature by integrating economic (price transparency) and social (online reviews) informational cues within a single empirical framework, specifically in the context of consumer durable goods. From a managerial perspective, the results highlight the importance for ecommerce platforms and retailers to ensure clear price disclosure, enable effective price comparison tools, and promote credible consumer review systems. The findings offer valuable insights for digital marketers, retail strategists, and policymakers seeking to enhance consumer trust and competitiveness in digital retail environments.