Author(s)

Peihan Xu

Corresponding Author

Peihan Xu

Abstract

With the rapid expansion of network interconnection, algorithms are increasingly becoming an important means for consumers to obtain information and goods. Although the algorithm has achieved success in enhancing brand loyalty, it also makes consumers more passive in their brand choices, with both advantages and disadvantages. This paper examines its impacts by analyzing the algorithm's intervention in the consumer decision-making process, including cultivating brand loyalty and inhibiting consumers' independent consciousness and emotional responses. Improving algorithm efficiency enhances brand awareness and consumer satisfaction, thereby consolidating brand loyalty. Nevertheless, in the long run, it can easily create consumers' emotional dependence and cognitive biases towards brands, diminishing their decision-making autonomy and the diversity of choices. When applying the algorithm, enterprises should weigh the benefits and potential risks, and strive to strike a balance between brand loyalty and consumers' independent choice.

Keywords

Algorithm; Brand loyalty; Double-edged sword effect; Consumer; Cognitive-emotional impact