FACTORS INFLUENCING CONSUMER PURCHASING DECISIONS IN THE DIGITAL AGE

Abstract

The rise of e-commerce in recent years has posed enormous problems for established businesses and drastically changed the purchasing patterns and behavior of consumers. Electronic commerce has changed due to technology, which has made it easier for customers to access, more affordable, and more convenient. Modern consumers' expectations and purchasing patterns are evolving as a result of e-commerce websites' wider product selections, affordable costs, and accessibility to all. Customers are increasingly more price-sensitive and elastic as a result of the decline of regional and physical boundaries. So, companies must adapt their tactics to thrive in the virtual world. Many companies are abandoning traditional brick-and-mortar systems in favor of hybrid or fully online approaches as a result of the rapid global success of companies like Alibaba and Amazon. This action emphasizes how the internet is increasingly being used for marketing and commerce. Southeast Asia's rapid adoption of online shopping is evidenced by the rise of platforms like Shopee as major participants in the online marketplace. Their emphasis on users and mobile- friendly interfaces has accelerated the shift to digital-first merchandising strategies and altered consumer expectations. The aim of this research is to examine what factors influence consumer behavior and purchasing decision-making in the modern digital era in Bosnia and Herzegovina. Through a case study of OLX.ba, the top consumer-to-consumer e-commerce platform in Bosnia and Herzegovina, this study examines the factors impacting consumer purchase decisions in the digital era, with an emphasis on the country's transitional economy. Despite Bosnia and Herzegovina's high internet penetration rate, the case study of OLX.ba shows that local cultural, economic, and social factors have considerable impact on digital consumer behavior in the country. Online buying is still low despite widespread internet use, primarily because of price sensitivity, trust issues, and cultural preferences like cash-on-delivery. In order to demonstrate how price sensitivity, usability, and trust influence digital consumer behavior, the study integrates quantitative survey data from 200 consumers with qualitative analysis of regional trends. The results emphasize the significance of user-friendly platform design, localized trust mechanisms, and focused awareness efforts in bridging the gap between internet availability and the adoption of e-commerce in emerging nations. Based on the conducted analysis of the case studies, the following recommendations for improvement in online buying can be made: strengthen digital trust and security systems, consumer awareness campaigns, improve user experience (continue improving user interfaces, especially on mobile devices), diversify offers and provide discounts, collaboration with government and local institutions.