The objective of this paper is to propose an Extended AND-OR Graph (EAOG)-driven inferential simulation mechanism with which decision makers engaged in electronic commerce (EC) can effectively deal with complicated decision making problem. In the field of traditional expect systems research, AND-OR Graph approach cannot be effectively used in the EC problems in which real-time problem-solving property should be highly required. In this sense, we propose the EAOG inference mechanism for EC problem-solving in which heurisric knowledge necessary for intelligent EC problem-solving can be represented in a form of matrix. The EAOG method possesses the following three characteristics. 1. Realtime inference: The EAOG inference mechanism is suitable for the real-time inference because its computational mechanism is based on matrix computation.2. Matrix operation: All the subjective knowledge is delineated in a matrix form, so that inference process can proceed based on the matrix operation which is computationally efficient.3. Bi-directional inference: Traditional inference method of expert systems is based on either forward chaining or based on either and computational efficiency. However, the proposed EAOG inference mechanism is generically bi-directional without loss of both speed and efficiency.We have proved the validity of our approach with several propositions and an illustrative EC example.