Information Overload and Online Purchase Decisions: The Mediating Effect of

Information Anxiety Among Nepali Youth.

BY

Anurag Shrestha

Exam Roll No. 32367/21

T.U. Reg. No.

A summer Project Submitted to

Faculty of Management, Tribhuvan University

In partial Fulfillment of the requirements for the Degree of

Bachelor of Business Administration

at the

D.A.V. College

Tribhuvan University

Dhobighat, Lalitpur

January 2025
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DECLARATION

This is to certify that I have completed the Summer Project entitled “Information

Overload and Online Purchase Decisions: The Mediating Effect of Information Anxiety

Among Nepali Youth.” under the guidance of “Mr. Bishnu Giri” in partial fulfillment

of the requirements for the degree of Bachelor of Business Administration at Faculty

of Management, Tribhuvan University. This is my original work and I have not

submitted it earlier elsewhere.

Date: Signature:

Name: Anurag Shrestha

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CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “Information Overload and Online
Purchase Decisions: The Mediating Effect of Information Anxiety Among Nepali
Youth.” is an academic work done by “Anurag Shrestha” submitted in the partial
fulfillment of the requirements for the degree of Bachelor of Business Administration
at Faculty of Management, Tribhuvan University under my guidance and supervision.
To the best of my knowledge, the information presented by him in the summer project
report has not been submitted earlier.

_____________________

Signature of the Supervisor

Bishnu Giri

Supervisor

Date:
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ACKNOWLEDGMENT

This research study would not have been possible without the support and guidance of
numerous individuals and institutions to whom we are deeply grateful. First and
foremost, we would like to express our sincere appreciation to Mr. Bishnu Giri, our
research supervisor, for his exceptional mentorship, insightful guidance, and
unwavering support throughout the course of this study. His constructive feedback and
encouragement were invaluable in refining our work and maintaining academic rigor.
We are also profoundly thankful to the Faculty of Management, D.A.V. College, for
providing us with the academic platform and necessary resources to undertake this
research. The institutional support and learning environment fostered at D.A.V. College
played a crucial role in the successful completion of our project. IN addition, we extend
our gratitude to all participants who contributed their time and responses to our survey,
enabling us to gather the data essential for our analysis. We would also like to
acknowledge our friends and classmates for their continuous moral support, helpful
suggestions, and motivation during various phases of this research. Their contributions,
both direct and indirect, have been deeply appreciated. Lastly, we are thankful to our
families for their patience, understanding, and encouragement, which sustained us
throughout this academic endeavor.
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Table of Contents
Information Overload and Online Purchase Decisions: The Mediating Effect of

Information Anxiety Among Nepali Youth. ................................................................... i

DECLARATION ...........................................................................................................ii

CERTIFICATE FROM THE SUPERVISOR ............................................................. iii

ACKNOWLEDGMENT............................................................................................... iv

CHAPTER I ................................................................................................................... 1

INTRODUCTION ......................................................................................................... 1

1.1 Context information ............................................................................................. 1

1.2 Purpose of the Study ......................................................................................... 3

1.3 Research Gap........................................................................................................ 4

1.4 Objectives of the Study ........................................................................................ 4

1.5 Significance of the Study ..................................................................................... 5

1.6 LITERATURE REVIEW ..................................................................................... 5

1.6.1 Theoretical Review ........................................................................................ 7

1.6.2 Variables Used in the Research ..................................................................... 9

1.6.3 Relationship between Variables .................................................................. 10

1.6.4 Theoretical Framework................................................................................ 12

Online Purchase Decisions .......................................................................................... 13

1.7 Research Methodology....................................................................................... 13

1.7.1 Research Design .......................................................................................... 13

1.7.2 Population and Sample ................................................................................ 13

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1.7.3 Data Collection Procedures ......................................................................... 13

1.7.4 Measurement Instruments............................................................................ 14

CHAPTER II ................................................................................................................ 15

DATA PRESENTATION AND ANALYSIS ............................................................. 15

2.1 Data Presentation................................................................................................ 15

2.2 Descriptive Statistics .......................................................................................... 16

2.3 Reliability Analysis (Cronbach’s Alpha) ........................................................... 17

2.4 Pearson Correlation Analysis ............................................................................. 18

2.5 Discriminant Validity ......................................................................................... 19

4.6 Path Analysis ...................................................................................................... 21

2.7 Findings and discussion ..................................................................................... 23

2.7.1 Findings ....................................................................................................... 23

2.7.2 Discussion .................................................................................................... 25

CHAPTER 3 ................................................................................................................ 27

CONCLUSION AND ACTION IMPLICATIONS ..................................................... 27

3.1 Conclusion.......................................................................................................... 27

3.2 Action implications ............................................................................................ 29

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CHAPTER I

INTRODUCTION
1.1 Context information

The digital revolution has profoundly transformed consumer behavior, particularly with
the rapid expansion of e-commerce and social media platforms. In recent years, Nepal
has experienced a substantial rise in internet penetration and smartphone adoption
among its youth, contributing to a sharp increase in online shopping activities
(Lamichhane et al., 2025; Khadka et al., 2025). This demographic characterized by
technological adaptability and strong digital engagement frequently turns to online
platforms to purchase goods and services. The convenience, product variety, and
accessibility offered by digital marketplaces have made online shopping an appealing
alternative to traditional retail, especially for young consumers in urban centers such as
Kathmandu (Lamichhane et al., 2025).

Despite these advantages, the digital environment is inherently information-dense,

often presenting consumers with an overwhelming range of product alternatives,
reviews, advertisements, and promotional content. While such information is intended
to support rational decision-making, it can exceed individuals’ cognitive processing
capacity, resulting in what is commonly referred to as information overload (Al-
Youzbaky & Hanna, 2022; Fan et al., 2024). Information overload occurs when the
volume, complexity, or ambiguity of information surpasses one’s ability to effectively
interpret and utilize it (Li, 2017). In online shopping contexts, this challenge is
intensified by the dynamic and interactive nature of digital platforms, where content is
abundant, personalized, and rapidly updated (Fan et al., 2024).

The consequences of information overload are well-documented. Excessive

information can lead to cognitive strain, confusion, and decision fatigue, ultimately
impairing the quality of consumer decisions (Kusi et al., 2022; Peng et al., 2021).
Consumers overwhelmed by numerous product alternatives or contradictory reviews
often face difficulty comparing options and forming confident purchase judgments (Li,
2017; Kusi et al., 2022). Young consumers, despite being digitally fluent, may lack the
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experience or evaluative strategies necessary to filter and prioritize information

effectively (Nyrhinen et al., 2023). Consequently, information overload can reduce
satisfaction with the shopping experience, heighten perceived risk, and even prompt
avoidance of online shopping altogether (Agnihotri et al., 2024; Al-Youzbaky &
Hanna, 2022).

One critical psychological response triggered by information overload is information

anxiety a state of stress, apprehension, or discomfort arising from difficulty managing
excessive or complex information (Al-Youzbaky & Hanna, 2022). Information anxiety
manifests through feelings of uncertainty, frustration, and confusion, which further
hinder decision-making. Within online shopping environments, information anxiety has
been associated with reduced trust in platforms, lower purchase intentions, and an
increased likelihood of abandoning shopping carts (Agnihotri et al., 2024; Fan et al.,
2024). This issue is particularly relevant for Nepali youth navigating a fast-evolving
digital marketplace with varying levels of consumer awareness and digital literacy
(Lamichhane et al., 2025).

Although online shopping is becoming increasingly prevalent among Nepali youth,

limited research has examined how information overload and information anxiety
jointly influence their purchase decisions. Most prior studies have focused on general
consumer populations or contexts with more developed digital infrastructures (Li,
2017; Fan et al., 2024). Nepal’s unique socio-cultural and technological environment
characterized by diverse consumer preferences, emerging regulatory mechanisms, and
rapidly evolving digital ecosystems necessitates a context-specific investigation into
these psychological and behavioral dynamics (Lamichhane et al., 2025; Khadka et al.,
2025).

This study is grounded in the Stressor–Strain–Outcome (SSO) framework, which posits

that environmental stressors (e.g., information overload) generate psychological strain
(e.g., information anxiety), ultimately shaping behavioral outcomes (e.g., purchase
decisions) (Agnihotri et al., 2024; Fan et al., 2024). Extensively validated across digital
consumer research, the SSO model provides a robust theoretical lens for understanding
how information-rich environments influence consumer cognition and behavior.
Applying this framework to the Nepali youth context allows for a deeper exploration
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of the psychological mechanisms linking digital information complexity to online

purchase decisions.

In summary, this study situates itself at the intersection of digital transformation, youth
consumer behavior, and the psychological challenges of information-dense online
environments. As Nepali youth increasingly engage in online shopping, examining the
impact of information overload and the mediating role of information anxiety is
essential for enhancing consumer well-being and informing effective digital retail
strategies. By addressing the existing research gap and offering empirical evidence
from a developing digital marketplace, this study contributes to both academic
discourse and practical interventions in the field of digital consumer behavior.

1.2 Purpose of the Study

The purpose of this study was to examine the effect of information overload on online
purchase decisions among Nepali youth, with particular emphasis on the mediating role
of information anxiety. As digital platforms increasingly dominate consumer
purchasing behavior, young consumers are frequently exposed to excessive amounts of
product-related information, which may influence both their psychological responses
and decision-making processes.

Specifically, this study aimed to analyze how information overload affects online
purchase decisions directly and to determine whether information anxiety functions as
an intervening psychological mechanism in this relationship. By applying the Stressor–
Strain–Outcome (SSO) framework, the study sought to clarify the extent to which
excessive information acts as a stressor that generates psychological strain and
subsequently shapes consumer behavior.

Furthermore, the study intended to contribute context-specific empirical evidence from

Nepal, where research on digital consumer behavior remains limited. By focusing on
Nepali youth one of the most digitally active consumer groups the study provides
insights into how young consumers in a developing digital economy cope with
information-rich online shopping environments. The findings of this research were
expected to support academic understanding and inform practical strategies for
improving online consumer experiences and decision-making quality.
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1.3 Research Gap

Although international studies have examined the impact of information overload on

consumer decision-making, there is limited evidence on how these dynamics unfold
among youth in developing economies, where digital ecosystems, cultural norms, and
levels of consumer literacy differ substantially from those in more mature markets (Al-
Youzbaky & Hanna, 2022; Wang, 2024). In particular, the mediating role of
information anxiety in the relationship between information overload and online
purchase decisions remains insufficiently explored within South Asian contexts.
Existing research underscores the need for context-specific investigations that account
for the unique psychological, social, and technological realities of Nepali youth, who
are navigating a rapidly expanding but unevenly developed digital marketplace (Al-
Youzbaky & Hanna, 2022; Agnihotri et al., 2024). This gap highlights the importance
of examining how information overload and information anxiety jointly influence
online purchase behavior in Nepal.

1.4 Objectives of the Study

The primary purpose of this study is to examine the mediating role of information
anxiety in the relationship between information overload and online purchase decisions
among Nepali youth. By focusing on this demographic, the study aims to clarify the
psychological mechanisms that shape digital consumer behavior within Nepal’s rapidly
expanding e-commerce environment. Specifically, the research seeks to address the
following objectives:

 To examine the influence of information overload on online purchase decision

of Nepali Youth
 To analyze the mediating effect of information anxiety between information
overload and online purchase decision.

By investigating these questions, the study provides deeper insight into how cognitive
overload and emotional strain jointly shape consumer choices in a developing digital
marketplace. This focus is particularly relevant as Nepali youth represent one of the
most active and digitally engaged consumer groups in the country.
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1.5 Significance of the Study

This study offers both theoretical and practical contributions. Theoretically, it broadens
the application of the Stressor–Strain–Outcome (SSO) framework by situating it within
a South Asian, youth-specific context, thereby enriching global scholarship on digital
consumer psychology. By identifying information anxiety as a central mediating
mechanism, the study advances understanding of how information overload translates
into specific behavioral outcomes in online purchase settings.

Practically, the findings provide valuable implications for e-commerce platforms,

digital marketers, and policymakers in Nepal. Recognizing the adverse effects of
excessive information and the resulting anxiety can guide stakeholders in developing
more user-centered platform designs, simplifying online information environments, and
promoting digital literacy initiatives that empower informed and confident purchasing
decisions (Wang, 2024; Zhong et al., 2025). Ultimately, the study contributes to
fostering a more supportive, accessible, and psychologically safe digital marketplace
for Nepali youth, enhancing both consumer well-being and the long-term sustainability
of Nepal’s e-commerce sector.

1.6 LITERATURE REVIEW

The rapid digitalization of commerce has greatly expanded the quantity and complexity
of information available to consumers, creating an environment where individuals
frequently encounter more information than they can effectively process. This
condition commonly referred to as information overload has become a prominent
challenge in online shopping contexts, where platforms routinely present extensive
product descriptions, large volumes of reviews, targeted advertisements, and
algorithmically generated recommendations. Although these informational features are
intended to support informed decision-making, they often impose excessive cognitive
demands, resulting in confusion, stress, and diminished decision quality (Kusi et al.,
2022; Peng et al., 2021). Empirical studies consistently show that information overload
undermines consumers’ capacity to evaluate alternatives and make confident choices.
For instance, Kusi et al. (2022) observed that increases in the volume of product-related
information are associated with heightened frustration, perceived risk, and difficulty in
comparing options, ultimately reducing decision satisfaction. Complementing these
findings, Peng et al. (2021) employed neurophysiological measures to demonstrate that
 6

information overload generates greater decision difficulty, prolongs decision time, and
increases the likelihood of post-decision regret, highlighting its detrimental cognitive
and emotional consequences. A substantial body of research further investigates the
psychological processes that explain how information overload translates into negative
purchase outcomes. A key mechanism identified in recent literature is information
anxiety, defined as the stress and apprehension that arise when individuals struggle to
process or interpret excessive information. Al-Youzbaky and Hanna (2022) found that
information overload significantly heightens information anxiety, which can
subsequently lead to avoidance behaviors and reduced satisfaction with purchase
decisions. However, their results also indicated that this mediating effect may not
always be statistically significant, suggesting that other psychological strains may also
play an important role. In support of this, several studies point to confusion and
cognitive dissonance as additional mediators. Agnihotri et al. (2024) reported that
overload generated by social media influencer’s increases consumer confusion, which
in turn contributes to purchase avoidance. Similarly, Lv and Liu (2022) showed that
information overload encourages impulsive buying and cognitive dissonance,
ultimately increasing consumers’ intentions to return purchased products. These
findings align with the Stressor–Strain–Outcome (SSO) framework, which
conceptualizes information overload as a stressor that induces psychological strain such
as anxiety, confusion, or dissonance that subsequently shapes behavioral outcomes. The
magnitude and direction of these effects, however, vary across consumers and contexts.
Several moderating variables have been identified in the literature. For example,
Agnihotri et al. (2024) demonstrated that consumers with higher levels of product
knowledge are less susceptible to confusion triggered by information overload, as their
experience facilitates more effective filtering and processing of information.
Additionally, Zhong et al. (2025) found that information overload weakens the
effectiveness of digital marketing strategies including social media promotions and
search engine marketing by reducing consumers’ responsiveness to persuasive cues.
Demographic and cultural factors further influence the degree to which individuals
experience information overload. Younger consumers, despite being digitally
competent, may be more vulnerable to overload due to limited experience in prioritizing
extensive online information (Nyrhinen et al., 2023). In developing countries, where
digital literacy and consumer protection mechanisms are still evolving, the risks
associated with information overload may be even more pronounced (Kusi et al., 2022).
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Collectively, existing literature underscores the need for e-commerce platforms and
marketers to acknowledge and mitigate the adverse consequences of information
overload. Researchers recommend simplifying product information, enhancing filtering
and categorization tools, and personalizing information according to consumers’
knowledge levels and preferences. Such measures are critical not only for improving
decision quality and consumer satisfaction but also for reducing negative behavioral
outcomes, including impulsive buying, purchase avoidance, and product return
intentions (Lv & Liu, 2022). Overall, the literature reveals a strong and consistent
relationship between information overload and unfavorable online purchase outcomes,
mediated by various forms of psychological strain and moderated by consumer
characteristics and contextual conditions. Despite substantial progress in this domain,
further research particularly among youth in developing economies is needed to deepen
understanding of how information overload shapes online purchasing behavior in
emerging digital markets.

1.6.1 Theoretical Review

The Stimulus–Organism–Response (SSO) model serves 6as the central theoretical

framework for this study, providing a structured lens through which the effects of
information overload on online purchase decisions can be understood. The model
asserts that external environmental factors (stimuli) influence internal cognitive and
emotional conditions (organisms), which subsequently determine behavioral outcomes
(responses) (Laato et al., 2020; Song et al., 2020). This framework is particularly well-
suited for examining digital consumer behavior, where individuals are frequently
exposed to overwhelming amounts of information that can shape psychological states
and decision-making patterns.

SSO Model in the Context of This Study

Within the scope of this research, the SSO model is operationalized through three core
constructs: information overload, information anxiety, and online purchase decisions.

Information Overload (Stimulus).

Information overload functions as the external stimulus and is defined as the excessive
quantity, complexity, or inconsistency of online information encountered by consumers
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during digital shopping. Nepali youth, who represent a rapidly growing segment of
online shoppers, are frequently exposed to large volumes of product details,
advertisements, and user-generated content. Prior research indicates that such overload
can overwhelm cognitive capacities, leading to confusion, stress, and reduced ability to
evaluate alternatives effectively (Agnihotri et al., 2024; Laato et al., 2020).

Information Anxiety (Organism).

Information anxiety represents the internal psychological state triggered by exposure to

excessive information. It reflects feelings of stress, apprehension, and uncertainty that
arise when an individual is unable to process or interpret the information presented.
Empirical evidence shows that information overload is positively associated with
information anxiety, which often serves as an intermediary mechanism linking external
stimuli to behavioral outcomes (Soroya et al., 2020; Song et al., 2020). In this study,
information anxiety is conceptualized as the organism component of the SSO
framework.

Online Purchase Decision (Outcomes).

The online purchase decision represents the behavioral response within the SSO
structure. This construct encompasses consumer actions such as proceeding with a
purchase, delaying it, or abandoning it entirely. Existing literature suggests that
heightened information anxiety can impair decision-making quality, reduce purchase
confidence, and increase the likelihood of avoidance behaviors, thereby negatively
affecting overall purchase intention (Agnihotri et al., 2024; Song et al., 2020).

Collectively, empirical studies employing the SSO model confirm that stimuli such as
information overload can lead to psychological strain including anxiety, confusion, and
fatigue which subsequently influence consumer decision-making behaviors (Laato et
al., 2020; Song et al., 2020). These findings underscore the suitability of the SSO
framework for understanding how digital environments shape purchase-related
behaviors among Nepali youth.
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Supporting Theoretical Perspectives

To further strengthen the conceptual grounding of this study, two complementary

theoretical perspectives Cognitive Load Theory and Information Processing Theory are
incorporated.

Cognitive Load Theory (CLT).

Cognitive Load Theory posits that individuals possess limited cognitive resources for
processing information. When the volume or complexity of information exceeds these
limits, cognitive strain occurs, leading to stress, reduced comprehension, and impaired
judgment (Laato et al., 2020; Mladenović et al., 2023). CLT provides a theoretical basis
for understanding why information overload contributes to the development of
information anxiety and hampers effective decision-making.

Information Processing Theory (IPT).

Information Processing Theory explains the sequential stages through which

individuals perceive, encode, store, and retrieve information. Information overload
disrupts these processes by hindering attention, impairing evaluation of alternatives,
and increasing the likelihood of errors in judgment. This disruption contributes to
heightened anxiety and suboptimal purchase decisions (Song et al., 2020). IPT therefore
complements the SSO model by elaborating the cognitive mechanisms through which
stimuli translate into psychological and behavioral outcomes.

1.6.2 Variables Used in the Research

Overload of Information (IO)

When the amount, complexity, or variety of information surpasses a person's ability to
handle it efficiently, it is referred to as information overload and causes cognitive strain
and makes decision-making challenging. Online shoppers may experience emotions of
overload due to the abundance of product-related information, adverts, reviews, and
suggestions they encounter. The independent variable in this study is information
overload, which is the stimulus part of the Stimulus–Organism–Response (S–S–O)
paradigm. The construct is measured using items primarily adopted from Karr-
Wisniewski and Lu (2010), with additional items adapted from Zhang et al. (2016),
 10

Ayyagari (2012), Matthes et al. (2019), and Farooq et al. (2020). All items are measured
on a 5-point Likert scale ranging from 1 (Strongly Disagree) to 5 (Strongly Agree).

Information Anxiety

The psychological condition known as "information anxiety" is marked by tension,

perplexity, and anxiety brought on by challenges with information processing or
interpretation. It shows how a person reacts emotionally and cognitively to being
exposed to too much information. Information anxiety serves as the mediating variable
in this study and is equivalent to the S-S-O model's organism component. Measurement
items for Information Anxiety are adopted from Girard and Allison (2008) and López-
Bonilla and López-Bonilla (2011), which capture consumers’ perceived anxiety,
discomfort, and uncertainty when dealing with large amounts of information.
Responses are recorded using a 5-point Likert scale ranging from 1 (Strongly Disagree)
to 5 (Strongly Agree).

Purchase Decision (PD)

Purchase Decision refers to consumers’ behavioral outcomes in online shopping

environments, including their intention to purchase, confidence in decision-making,
and likelihood of proceeding with or postponing a purchase. In this study, Purchase
Decision is treated as the dependent variable and represents the response component of
the Stimulus–Organism–Response (S–S–O) framework. The construct is measured
using items adopted from Coyle and Thorson (2001), Altarifi et al. (2015), Gazzola et
al. (2017), and Erkan and Evans (2016). These items assess consumers’ readiness,
certainty, and trust in making online purchase decisions. All responses are measured on
a 5-point Likert scale ranging from 1 (Strongly Disagree) to 5 (Strongly Agree).

1.6.3 Relationship between Variables

Information Overload and Online Purchase Decision

Information overload occurs when consumers are exposed to an excessive amount of

product-related information such as advertisements, reviews, comparisons, and
recommendations that exceeds their cognitive processing capacity. In online shopping
environments, this overload can impair consumers’ ability to evaluate alternatives
effectively and make confident decisions. Prior studies suggest that excessive
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information leads to confusion, cognitive fatigue, and decision paralysis, which

ultimately reduce purchase confidence and increase the likelihood of delaying or
abandoning purchase decisions (Li, 2017; Kusi et al., 2022; Peng et al., 2021).

Within the Stressor–Strain–Outcome (SSO) framework, information overload

functions as a stressor that directly influences behavioral outcomes. Empirical evidence
consistently demonstrates that higher levels of information overload negatively affect
online purchase decisions by reducing satisfaction, increasing perceived risk, and
lowering purchase intention (Fan et al., 2024; Agnihotri et al., 2024). In the context of
Nepali youth who frequently rely on digital platforms for shopping excessive and
unstructured information may further complicate decision-making processes. Based on
the above argument, it is hypothesized;

Hypothesis (H1): Information overload has a significant negative effect on online

purchase decisions among Nepali youth.

Information Overload and Information Anxiety

Information overload has been widely identified as a key antecedent of information

anxiety. When consumers are unable to process or interpret excessive and complex
information, they experience psychological discomfort characterized by stress,
uncertainty, and frustration referred to as information anxiety (Al-Youzbaky & Hanna,
2022). Online shopping platforms intensify this condition by continuously presenting
dynamic and often contradictory information, which heightens consumers’ cognitive
and emotional strain.

Consistent with the SSO model, information overload (stressor) triggers information
anxiety as a form of psychological strain. Empirical studies confirm a strong positive
relationship between information overload and information anxiety in digital
consumption contexts (Soroya et al., 2020; Fan et al., 2024). This relationship is
particularly relevant for Nepali youth, who may have varying levels of digital literacy
and experience in filtering online information effectively. Based on the above
argument, it is hypothesized;

Hypothesis (H2): Information overload has a significant positive effect on information

anxiety among Nepali youth.

Information Anxiety and Online Purchase Decision

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Information anxiety negatively influences consumers’ ability to make effective

purchase decisions. Anxious consumers often feel uncertain, lack confidence, and
struggle to evaluate alternatives, which can result in postponed decisions, cart
abandonment, or avoidance of online shopping altogether (Agnihotri et al., 2024).
Information anxiety undermines trust in online platforms and weakens consumers’
readiness to proceed with purchases.

From the SSO perspective, information anxiety represents the organism component that
translates environmental stressors into behavioral outcomes. Previous research has
shown that higher levels of information anxiety are associated with reduced purchase
intention, lower decision satisfaction, and increased avoidance behavior (Song et al.,
2020; Fan et al., 2024). Therefore, information anxiety is expected to negatively affect
online purchase decisions among Nepali youth. Based on the above argument, it is
hypothesized;

Hypothesis (H3): Information anxiety has a significant negative effect on online

purchase decisions among Nepali youth.

Mediating Role of Information Anxiety

Beyond direct effects, information anxiety is expected to function as a mediating

variable in the relationship between information overload and online purchase
decisions. According to the SSO framework, environmental stressors influence
outcomes primarily through psychological strain. Information overload alone may not
fully explain adverse purchase behaviors unless it generates anxiety that disrupts
cognitive processing and decision confidence.

Empirical studies support this mediation mechanism, indicating that information

overload increases information anxiety, which in turn negatively affects purchase
decisions (Al-Youzbaky & Hanna, 2022; Fan et al., 2024). In the context of Nepali
youth, excessive online information may heighten anxiety levels, thereby indirectly
reducing the quality and likelihood of online purchase decisions.

Hypothesis H4: Information anxiety mediates the relationship between information

overload and online purchase decisions among Nepali youth.

1.6.4 Theoretical Framework

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Information Anxiety

Information Overload Online Purchase Decisions

Note: Adopted from (Al-Youzbaky & Hanna, 2022)

1.7 Research Methodology

1.7.1 Research Design

This study adopts a quantitative research design to examine the relationship between
information overload and online purchase decisions, with information anxiety as a
mediating variable, among Nepali youth. A quantitative approach is appropriate as it
enables the systematic measurement of variables and the statistical testing of
hypothesized relationships. The research follows a cross-sectional survey design,
wherein data are collected from respondents at a single point in time. This design allows
for efficient analysis of perceptions and behaviors related to online shopping within the
target population.

1.7.2 Population and Sample

The population of this study comprises Nepali youth who actively engage in online
shopping, particularly those exposed to digital marketing and online information
platforms. For the purpose of this research, youth are defined as individuals aged 18 to
50 years, consistent with commonly accepted classifications in social science research.

A non-probability convenience sampling technique was employed to select respondents

due to accessibility and time constraints. Participants were recruited from major urban
areas of Nepal, with a focus on students and young professionals who frequently use
the internet and e-commerce platforms. A total of 121 valid responses were collected
and used for data analysis, which is considered adequate for conducting correlation and
mediation analysis.

1.7.3 Data Collection Procedures

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This study primarily relies on primary data collected directly from respondents through
a structured questionnaire. The questionnaire was distributed electronically through
online platforms such as social media, email, and messaging applications to ensure a
wider reach among the target demographic. Prior to data collection, respondents were
informed about the purpose of the study, and their voluntary participation and
anonymity were assured.

The data collection process was conducted over a period of four weeks. Responses were
screened for completeness and consistency, and only fully completed questionnaires
were retained for further analysis. Ethical considerations, including informed consent
and confidentiality, were strictly maintained throughout the research process.

1.7.4 Measurement Instruments

The survey instrument consisted of four sections designed to measure the key constructs
of the study:

 Information Overload: Measured using multiple items adapted from established

scales in prior research, capturing respondents’ perceptions of excessive online
information during shopping activities.
 Information Anxiety: Assessed using items reflecting feelings of stress,
confusion, and difficulty in processing online information.
 Online Purchase Decisions: Measured through items evaluating decision
confidence, satisfaction, and purchase behavior in online environments.
 Demographic Information: Included age, gender, Time spend in social media,
and frequency of online shopping.

All measurement items were rated on a five-point Likert scale, ranging from 1 (Strongly
Disagree) to 5 (Strongly Agree). The reliability of the scales was assessed using
Cronbach’s alpha, while validity was ensured through content validation based on prior
literature.
 15

CHAPTER II

DATA PRESENTATION AND ANALYSIS

This chapter analyzes the data collected in alignment with the predetermined objectives

outlined in study. By interpreting the data, this chapter aims to provide valuable insights

into the research questions and objectives.

2.1 Data Presentation

This section presents the demographic profile of the respondents included in the study
based on 121 valid responses. Regarding age distribution, the majority of respondents
(52.9%) fall within the 20–30 age group, followed by those aged 30–40 years (23.1%).
Respondents aged 10–20 years account for 20.7% of the sample, while only 3.3%
belong to the 40–50 age group, indicating that the sample is largely composed of young
and economically active individuals. In terms of gender, 53.7% of the respondents are
female and 46.3% are male, reflecting a relatively balanced gender composition.
Concerning online shopping experience, a substantial proportion of respondents
(83.5%) reported having purchased products online within the last six months, whereas
 16

16.5% indicated no such experience, confirming the relevance of the sample for the
study. Furthermore, the analysis of average daily social media usage shows high digital
engagement, with 40.5% of respondents spending more than five hours per day on
social media platforms, 33.5% spending two to five hours, 22.3% spending one to three
hours, and only 2% spending less than one hour per day. This demographic profile
highlights significant exposure to online information among Nepali youth, which is
pertinent to examining information overload and information anxiety in online purchase
decisions.

2.2 Descriptive Statistics

This section presents the descriptive statistics for the key constructs examined in this

study, namely Information Overload, Information Anxiety, and Online Purchase

Decision, based on responses from 121 Nepali youth. All variables were measured

using a five-point Likert scale ranging from 1 (Strongly Disagree) to 5 (Strongly

Agree).

Table 1: Descriptive Statistics for Key Variables

Std.
Construct N Minimum Maximum Mean Deviation
Information Overload 121 1.00 5.00 3.3851 .85991
Information Anxiety 121 1.00 5.00 3.2397 .85112
Purchase Decision 121 1.00 5.00 3.5802 .79767

The mean score for information overload is 3.3851 with a standard deviation of
0.85991, indicating that respondents experience a moderate level of information
overload while engaging in online shopping activities. The relatively high standard
deviation suggests noticeable variation in respondents’ perceptions, implying that while
some individuals feel highly overwhelmed by excessive online information, others
experience lower levels of overload.

Information anxiety has a mean value of 3.2397 and a standard deviation of 0.85112,
reflecting a moderate degree of anxiety related to processing and evaluating online
information. This result indicates that exposure to large amounts of online information
 17

generates feelings of confusion and stress among Nepali youth, although the intensity
of this anxiety differs across respondents.

The online purchase decision construct records the highest mean score of 3.5802 with
a standard deviation of 0.79767. This suggests that respondents generally exhibit a
moderately positive tendency toward making online purchase decisions. The
comparatively lower standard deviation indicates greater consistency in purchasing
behavior among respondents despite differences in their experiences of information
overload and anxiety.

Overall, the descriptive statistics reveal that Nepali youth are moderately affected by
information overload and information anxiety, yet they continue to demonstrate
relatively favorable online purchase decision behavior. These findings provide a
foundation for subsequent inferential analyses aimed at examining relationships among
the study variables and testing the mediating effect of information anxiety.

2.3 Reliability Analysis (Cronbach’s Alpha)

This section presents the results of the reliability analysis conducted to assess the

internal consistency of the measurement scales used in the study. Cronbach’s alpha was

employed as the reliability coefficient to evaluate whether the items within each

construct consistently measure the same underlying concept.

Table 2 Reliability Analysis of Measurement Scales

No of Items Cronbach's alpha

Information Overload 5 0.835

Information Anxiety 5 0.843
Purchase Decision 5 0.857

The information overload scale, consisting of five items, recorded a Cronbach’s alpha
value of 0.835. This value exceeds the commonly accepted threshold of 0.70, indicating
a high level of internal consistency among the items measuring information overload.
 18

This suggests that the items reliably capture respondents’ perceptions of excessive
information exposure during online shopping.

Similarly, the information anxiety construct, measured using five items, yielded a
Cronbach’s alpha of 0.843. This result reflects strong internal consistency and confirms
that the items used to assess anxiety related to processing online information are reliable
and coherent.

The purchase decision scale demonstrated the highest reliability, with a Cronbach’s
alpha value of 0.857 across five items. This indicates excellent internal consistency and
suggests that the items effectively measure respondents’ online purchase decision
behavior.

Overall, all constructs exhibit Cronbach’s alpha values well above the minimum
acceptable level, confirming that the measurement instruments used in this study are
reliable. Therefore, the data obtained from these scales are suitable for further statistical
analyses, including correlation and mediation analysis.

2.4 Pearson Correlation Analysis

This section presents the results of the Pearson correlation analysis conducted to
examine the strength and direction of relationships among information overload,
information anxiety, and online purchase decision. Pearson’s correlation coefficient
was used as the data satisfied the assumptions required for parametric correlation
analysis.

Table 3 Pearson Correlation Matrix for Key Variables

Information
Overload
Information Purchase
Variable Anxiety Decision
Information Overload 1 .637** .523**
.000 .000

Information Anxiety .637** 1 .446**

.000 .000

Purchase Decision .523** .446** 1

.000 .000
 19

Note: p < 0.01 (2-tailed) indicates statistical significance at the 1% level.

The results indicate a strong positive and statistically significant relationship between
information overload and information anxiety (r = 0.637, p < 0.01). This suggests that
higher levels of information overload experienced by Nepali youth are associated with
increased levels of information anxiety. The finding supports the argument that
excessive exposure to online information during shopping activities contributes to
feelings of confusion and psychological stress.

A moderate positive and statistically significant relationship is observed between

information overload and online purchase decision (r = 0.523, p < 0.01). This indicates
that information overload is positively associated with purchase decision behavior.
While excessive information may overwhelm consumers, it may also provide a greater
amount of product-related knowledge, which can influence decision-making among
youth.

Furthermore, information anxiety is found to have a moderate positive and statistically

significant relationship with online purchase decision (r = 0.446, p < 0.01). This result
implies that as information anxiety increases, changes in purchase decision behavior
also occur. This relationship highlights the psychological role of anxiety in shaping how
consumers evaluate alternatives and make online purchase decisions.

Overall, the correlation results demonstrate statistically significant relationships among

all key variables at the 1 percent significance level. These findings provide preliminary
empirical support for further analysis of the mediating effect of information anxiety on
the relationship between information overload and online purchase decisions.

2.5 Discriminant Validity

This section presents the results of the discriminant validity assessment for the
constructs included in the study, namely information anxiety, information overload, and
online purchase decision. Discriminant validity was evaluated to determine the extent
to which each construct is empirically distinct from the others. The square root of the
Average Variance Extracted (AVE) for each construct is presented along the diagonal
of the matrix, while the off-diagonal values represent the correlations between
constructs.
 20

Table 4 Discriminant Validity

Purchase Decision
Information
Information Anxiety
Overload

Information Anxiety 0.784

Information
0.756 0.777
Overload
Purchase Decision 0.526 0.619 0.799

Note: Diagonal values (in bold) represent the square root of AVE. Off-diagonal values
represent inter-construct correlations.

The square root of AVE for information anxiety is 0.784, which is higher than its
correlations with information overload (0.756) and purchase decision (0.526). This
indicates that information anxiety shares more variance with its own indicators than
with other constructs in the model, thereby satisfying the criterion for discriminant
validity.

Similarly, the square root of AVE for information overload is 0.777, which exceeds its
correlation with information anxiety (0.756) and purchase decision (0.619). This result
confirms that information overload is empirically distinct from the other constructs
examined in the study.

The purchase decision construct shows a square root of AVE value of 0.799, which is
greater than its correlations with information anxiety (0.526) and information overload
(0.619). This demonstrates that the items measuring purchase decision capture a unique
construct that is not overly correlated with the remaining variables.

Overall, the results indicate that all constructs satisfy the Fornell–Larcker criterion for
discriminant validity. Therefore, the measurement model demonstrates adequate
discriminant validity, confirming that information anxiety, information overload, and
online purchase decision are conceptually and statistically distinct constructs. This
supports the suitability of the measurement model for subsequent mediation and
regression analyses.
 21

4.6 Path Analysis

To examine the hypothesized relationships among Information Anxiety, Information

Overload, and Purchase Decision, the structural model was assessed using Partial Least
Squares Structural Equation Modeling (PLS-SEM) with the SmartPLS software. The
bootstrapping procedure with 5,000 resamples was applied to evaluate the statistical
significance of the path coefficients. The analysis included the assessment of direct
effects among the constructs, as well as indirect effects to determine the presence of
mediation effects within the model. This approach enabled a robust examination of the
proposed relationships and the overall predictive capability of the structural model.

Table 5 Direct Effects between Constructs

This section presents the results of the direct effect analysis examining the relationships
among information overload, information anxiety, and online purchase decision. The
analysis was conducted to assess the strength, direction, and statistical significance of
the hypothesized direct paths among the constructs.

Path Coefficient T p- Interpretation

(β) Statistic Value
Information Analysis-> Not Significant
0.216 1.592 0.112
Purchase Decision

Information Overload -> Significant

0.646 11.375 0
positive effect
Information Analysis

Information Overload -> Significant

0.388 3.094 0.002
positive effect
Purchase Decision

The direct effect of information anxiety on online purchase decision shows a

standardized path coefficient of β = 0.216 with a t-statistic of 1.592 and a p-value of
0.112. As the p-value exceeds the 0.05 significance level, this relationship is not
statistically significant. This result indicates that information anxiety does not have a
direct and independent influence on online purchase decisions among Nepali youth
when considered in isolation.
 22

In contrast, information overload demonstrates a strong and statistically significant

positive effect on information anxiety, with a path coefficient of β = 0.646, a t-statistic
of 11.375, and a p-value of 0.000. This finding suggests that higher levels of
information overload significantly increase information anxiety. The result supports the
theoretical assumption that excessive online information leads to heightened
psychological strain and difficulty in information processing.

Furthermore, information overload has a statistically significant positive effect on

online purchase decision, as indicated by a path coefficient of β = 0.388, a t-statistic of
3.094, and a p-value of 0.002. This implies that information overload directly influences
purchase decision behavior, possibly by increasing exposure to product alternatives and
information cues that shape consumers’ decision-making processes.

Overall, the results reveal that information overload has both a direct effect on online
purchase decisions and an indirect pathway through information anxiety. Although
information anxiety does not exert a significant direct effect on purchase decision, its
strong association with information overload provides empirical justification for further
mediation analysis. These findings form the basis for examining the mediating effect
of information anxiety in the relationship between information overload and online
purchase decisions.

Table 6 Indirect Effect (Mediation Analysis)

This section presents the results of the mediation analysis conducted to examine the
indirect effect of information overload on online purchase decision through information
anxiety. The purpose of this analysis was to determine whether information anxiety
mediates the relationship between information overload and purchase decision among
Nepali youth.

Indirect Path Coefficient T p- Interpretation

(β) Statistic Value
Information Overload -> 0.139 1.537 0.124 Not
Information Analysis -> Significant
Purchase Decision
 23

The indirect effect of information overload on purchase decision via information

anxiety shows a standardized coefficient of β = 0.139, with a t-statistic of 1.537 and a
p-value of 0.124. Since the p-value is greater than the conventional significance
threshold of 0.05, the indirect effect is not statistically significant. This result indicates
that information anxiety does not significantly mediate the relationship between
information overload and online purchase decision.

Although information overload significantly increases information anxiety, and

information overload also has a significant direct effect on purchase decision, the
mediating pathway through information anxiety is not supported. This suggests that
while information anxiety is influenced by information overload, it does not play a
crucial intervening role in explaining how information overload affects purchase
decisions among Nepali youth.

Overall, the mediation analysis indicates that the effect of information overload on
online purchase decisions is primarily direct rather than indirect through information
anxiety. Consequently, information anxiety does not function as a mediator in this
relationship within the context of the present study. These findings lead to the rejection
of the mediation hypothesis and provide important theoretical implications regarding
the limited explanatory role of information anxiety in online purchase decision-making
among Nepali youth.

2.7 Findings and discussion

2.7.1 Findings

This study examined the relationship between information overload and online
purchase decisions, with a particular focus on the mediating role of information anxiety
among Nepali youth. The findings are derived from descriptive statistics, reliability and
validity tests, correlation analysis, and structural path analysis.

The descriptive analysis revealed that Nepali youth experienced moderate levels of
information overload and information anxiety while engaging in online shopping.
Despite this, respondents generally demonstrated a relatively positive tendency toward
making online purchase decisions. This suggests that although young consumers are
 24

exposed to large volumes of online information, they continue to participate actively in

digital purchasing environments.

Reliability and validity analyses confirmed that all measurement scales used in the
study were internally consistent and empirically distinct. This ensured that the
constructs of information overload, information anxiety, and online purchase decision
were measured accurately and independently, providing a robust foundation for
inferential analysis.

Correlation analysis indicated significant positive relationships among all key

variables. Information overload was strongly associated with information anxiety,
suggesting that excessive online information heightened psychological strain among
Nepali youth. Information overload and information anxiety were both positively
related to online purchase decisions, indicating that increased exposure to information
and related anxiety coincided with changes in purchasing behavior.

The structural model results provided deeper insights into these relationships.
Information overload was found to have a significant positive effect on information
anxiety, supporting the view that excessive information acts as a psychological stressor.
Information overload also exerted a significant direct influence on online purchase
decisions, indicating that it plays a central role in shaping consumer behavior in digital
environments.

However, information anxiety did not have a statistically significant direct effect on
online purchase decisions. Furthermore, mediation analysis showed that information
anxiety did not significantly mediate the relationship between information overload and
purchase decision. These results indicate that although information anxiety increases as
a result of information overload, it does not function as a key mechanism through which
overload influences purchasing behavior.

Based on the empirical results, hypothesis testing outcomes are summarized as follows.
The hypothesis proposing a significant effect of information overload on online
purchase decision was supported. The hypothesis suggesting a positive effect of
information overload on information anxiety was also supported. In contrast, the
hypothesis proposing a significant effect of information anxiety on online purchase
 25

decision was not supported. Consequently, the hypothesis proposing the mediating role
of information anxiety was also rejected.

Overall, the most important finding of the study is that information overload directly
influences online purchase decisions among Nepali youth, while information anxiety,
although elevated, does not significantly alter this relationship.

2.7.2 Discussion

The present study examined the relationship between information overload and online
purchase decisions among Nepali youth, with information anxiety proposed as a
mediating variable. The findings provide partial support for the Stressor–Strain–
Outcome (SSO) framework and offer context-specific insights into digital consumer
behavior within a developing economy.

The results revealed that information overload significantly increased information

anxiety among respondents. This finding is consistent with prior research suggesting
that excessive and complex online information exceeds consumers’ cognitive
processing capacity, resulting in psychological strain such as stress and anxiety
(Bawden & Robinson, 2009; Eppler & Mengis, 2004). Similar results were reported by
Al-Youzbaky and Hanna (2022), who found that information overload significantly
contributes to information anxiety among online shoppers. This consistency across
studies suggests that the relationship between information overload and information
anxiety is stable across different cultural and technological contexts.

The study further found that information overload had a significant direct effect on
online purchase decisions. This finding aligns with earlier studies indicating that
increased information exposure can shape purchasing behavior by influencing how
consumers evaluate alternatives and process product-related cues (Chen et al., 2009;
Huang & Zhou, 2019). Al-Youzbaky and Hanna (2022) also noted that excessive
product information directly affects consumers’ purchasing decisions by altering their
cognitive evaluation processes. In the context of Nepali youth, this result suggests that
information overload does not necessarily discourage online purchasing but instead
directly influences decision-making behavior.
 26

Contrary to expectations, information anxiety did not have a significant direct effect on
online purchase decisions. This finding diverges from several studies that associate
anxiety with reduced purchase intention, avoidance behavior, and lower decision
confidence (Ding et al., 2017; Song et al., 2020). However, similar non-significant
effects were also reported by Al-Youzbaky and Hanna (2022), who argued that
experienced and digitally literate consumers may continue purchasing despite
experiencing anxiety. This suggests that information anxiety may not uniformly
translate into negative behavioral outcomes, particularly among young consumers who
are accustomed to navigating information-dense digital environments.

The mediation analysis further indicated that information anxiety did not significantly
mediate the relationship between information overload and online purchase decisions.
This finding suggests that the effect of information overload on purchasing behavior
operates primarily through a direct pathway rather than indirectly through anxiety. This
result partially contradicts the sequential logic proposed by the SSO framework but is
consistent with empirical evidence presented by Al-Youzbaky and Hanna (2022), who
also found no significant mediating role of information anxiety between information
overload and purchasing decisions.

From a contextual perspective, the absence of a mediation effect may reflect the
adaptive behavior of Nepali youth in online shopping environments. Despite
experiencing information overload and moderate anxiety, respondents continued to
engage in online purchasing, possibly due to increased digital familiarity, reliance on
trusted platforms, and limited offline alternatives. Prior studies suggest that consumers
with higher experience and education levels are better able to filter information and
cope with overload, thereby reducing the behavioral impact of anxiety (Bjelland et al.,
2008; Donmez-Turan, 2019).

Overall, the findings contribute to the existing literature by demonstrating that

information overload plays a central role in shaping online purchase decisions among
Nepali youth, while information anxiety has a limited mediating influence. By
empirically validating and extending prior research within a South Asian context, this
study highlights the importance of contextual factors in understanding digital consumer
behavior and suggests that psychological strain does not always translate into reduced
purchasing activity.
 27

CHAPTER 3

CONCLUSION AND ACTION IMPLICATIONS

3.1 Conclusion

The purpose of this study was to examine the effect of information overload on online
purchase decisions among Nepali youth, with a particular focus on the mediating role
of information anxiety. Grounded in the Stressor–Strain–Outcome (SSO) framework,
the research sought to understand how excessive online information influences
psychological responses and subsequent consumer behavior in a developing digital
marketplace.
 28

The findings of the study indicated that Nepali youth experienced moderate levels of
information overload and information anxiety while engaging in online shopping.
Despite this, respondents generally demonstrated a positive tendency toward making
online purchase decisions. This suggests that while young consumers are exposed to
large volumes of digital information, they continue to participate actively in online
purchasing activities.

Inferential analysis revealed that information overload had a significant positive effect
on both information anxiety and online purchase decisions. This confirms that
excessive online information acts as a key environmental stressor that directly shapes
consumer decision-making behavior. However, information anxiety did not have a
significant direct effect on online purchase decisions. Furthermore, the mediation
analysis showed that information anxiety did not significantly mediate the relationship
between information overload and purchase decisions.

These findings indicate that the influence of information overload on online purchase
decisions among Nepali youth operates primarily through a direct pathway rather than
indirectly through information anxiety. Although information overload increases
psychological strain, such strain does not necessarily disrupt purchasing behavior. This
outcome suggests that Nepali youth may have developed adaptive coping mechanisms,
such as selective information processing, reliance on familiar platforms, or trust in
established online sellers, which allow them to continue making purchase decisions
despite experiencing information-related stress.

Overall, the study contributes to existing literature by providing empirical evidence

from a Nepali context and by demonstrating that the mediating role of information
anxiety is limited. The findings partially support the SSO framework and highlight the
importance of contextual and demographic factors in understanding online consumer
behavior. By addressing the research objectives, this study enhances understanding of
how information overload affects digital purchase decisions among youth in an
emerging e-commerce environment.
 29

3.2 Action implications

Based on the findings of this study, several practical action implications can be drawn
for key stakeholders, including online consumers, e-commerce platforms, digital
marketers, and policymakers in Nepal.

For online consumers, particularly Nepali youth, the findings highlight the importance
of developing effective information management strategies. Consumers are encouraged
to limit excessive information searching, rely on credible sources, and focus on key
product attributes rather than attempting to process all available information. Such
practices may help reduce unnecessary anxiety and improve the quality of purchase
decisions.

For e-commerce platforms, the results suggest a need to simplify and structure online
information environments. Platforms should reduce information clutter by organizing
product details clearly, minimizing redundant content, and prioritizing relevant
information. Features such as comparison tools, personalized recommendations, and
summarized reviews can assist consumers in processing information more efficiently
and making confident decisions.

For digital marketers, the study emphasizes that providing excessive promotional
content may not always enhance consumer decision-making. Marketers should focus
on delivering concise, accurate, and relevant information rather than overwhelming
consumers with extensive details and advertisements. Tailoring content according to
consumer preferences and digital literacy levels can improve engagement and reduce
perceived overload.

For policymakers and regulators, the findings underscore the importance of promoting
digital literacy and consumer awareness initiatives. Educational programs that enhance
consumers’ ability to evaluate online information critically can empower youth to
navigate digital marketplaces more effectively. Additionally, establishing guidelines
for transparent and standardized online product information may help reduce
misleading or excessive content in e-commerce environments.

In conclusion, the action implications of this study emphasize the need for a balanced
digital information environment that supports informed and confident online purchase
 30

decisions. By addressing information overload through consumer education, platform

design, and responsible marketing practices, stakeholders can contribute to a healthier
and more sustainable e-commerce ecosystem in Nepal.