Herding Behavior in Sri Lanka E-commerce: Understanding the Interplay between Herding Cues and Online Purchase Decision on High Involvement and Low Involvement Product

Abstract

Background: Consumers follow others and rely on "herding behaviour" when they have limited product knowledge and face risks while using online platforms. Aim: This study aims to investigate the effects of herding cues and consumer herding behaviour on online purchasing decisions in Sri Lanka by comparing high- and low-involvement products. Design: Social influence theory (SIT) provides a useful basis for exploring how majority opinions and herding cues influence consumers’ online purchasing decisions. Customer reviews, sales volume, and product attributes constitute herding cues, and this study examines the mediating role of herding behaviour and the moderating role of product involvement. The target population comprised Sri Lankan online consumers aged 18 years and above. Data were collected through a self-administered online questionnaire distributed via popular social media platforms. Correlation and multiple regression analyses were used to test the study hypotheses. Findings: A total of 440 questionnaires were used for the data analysis. Product-attribute displays and sales volume had significant positive effects on herding behaviour and jointly explained 40.7% of its variance (R² = 0.407, F = 99.867, p < 0.001), whereas customer reviews did not have a significant effect. Mediation analysis confirmed that herding behaviour partially mediated the relationship between herding cues and online pre-purchase decisions (indirect effect = 0.3625) and post-purchase decisions (indirect effect = 0.2606). Product involvement did not significantly moderate the relationship between herding behaviour and online purchasing decisions. Implication: The findings indicate that online platforms should present engaging content that clearly displays sales volume and product-quality information. Online advertisements should regularly update sales-volume information and prominently display products with high sales values. Further study: Future research could provide a deeper understanding of factors such as the numbers of likes, views, and bids as herding cues, and their effects on product selection, technology use, advertising, and branding.