The Influence of Digital Marketing and Social Media Algorithms on Consumer Decision-Making Processes in the E-commerce Sector

Abstract

This thesis examines the profound impact of digital marketing and social media algorithms on consumer decision-making within the e-commerce sector. As digital platforms evolve, they significantly shape consumer behavior, preferences, and purchasing patterns. With a significant sample predominantly from India and Czechia, the research provides insights into the intricate relationship between marketing strategies and consumer responses. Utilizing quantitative methodologies, the thesis captures the essence of how personalization, targeted advertisements, and social media engagement influence purchasing decisions. It delineates the varying effects on different demographic groups, highlighting the role of influencer endorsements and algorithm-driven personalization in fostering brand loyalty. Furthermore, the study explores the implications of technological innovations such as AI in refining marketing strategies and consumer interaction. By dissecting the intricate dynamics of the digital marketplace, the thesis contributes valuable knowledge to the marketing domain, equipping businesses to navigate the digital landscape effectively and align with consumer needs in an increasingly competitive environment.