Reconstructing the Digital Funnel: A SEM-Based Perspective on Consumer Pathways and Service Expectations

In the realm of e-commerce, aligning digital funnel design with buyer expectations is critical for guiding consumers from awareness to purchase and beyond. This paper synthesizes insights from a buyer’s expectation survey and structural equation modelling (SEM) of online consumer behaviour to propose a redesigned digital funnel. Drawing on an online buyer survey of desired e-commerce services and a SEM-validated model of choice mechanisms, the paper maps key digital services to appropriate funnel stages (Awareness, Consideration, Decision, and Post-purchase Loyalty). The proposed funnel highlights how heuristic-driven services – such as intuitive search and filtering by category/brand/price – in the consideration stage, and context-driven features (e.g., shopping by occasion) combine to drive deal-seeking behaviours, ultimately influencing purchase decisions. We integrate recent research on customer decision journeys and digital service design to ensure each funnel stage is supported by features that meet buyer needs while improving conversion. The findings indicate a significant gap between seller offerings and buyer expectations in current funnels, and demonstrate how our SEM-informed funnel can contribute to bridge this gap. We discuss theoretical and practical implications for e-commerce managers to enhance user experience, increase trust, and cultivate loyalty by deploying the right features at the right stage of the customer journey. All claims are supported with evidence from literature and foundational works in marketing and information systems.