Buying Online: Sequential Decision Making by Shopbot Visitors
AbstractIn this article we propose a two stage procedure to model demand decisions by customers who are balancing several dimensions of a product. We then test our procedure by analyzing the behavior of buyers from an Austrian price comparison site. Although in such a market a consumer will typically search for the cheapest price for a given product, reliability and service of the supplier are other important characteristics of a retailer. In our data, consumers follow such a two stage procedure: they select a shortlist of suppliers by using the price variable only; finally, they trade off reliability and price among these shortlisted suppliers.
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Bibliographic InfoPaper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2008-10.
Date of creation: Aug 2008
Date of revision:
e-commerce; price comparison; decision theory; heuristics; seller reputation;
Other versions of this item:
- Dulleck, Uwe & Hackl, Franz & Weiss, Bernhard & Winter-Ebmer, Rudolf, 2008. "Buying Online: Sequential Decision Making by Shopbot Visitors," Economics Series 225, Institute for Advanced Studies.
- Uwe Dulleck & Franz Hackl & Bernhard Weiss & Rudolf Winter-Ebmer, 2008. "Buying Online: Sequential Decision Making by Shopbot Visitors," NCER Working Paper Series 31, National Centre for Econometric Research.
- Dulleck, Uwe & Hackl, Franz & Weiss, Bernhard & Winter-Ebmer, Rudolf, 2008. "Buying Online: Sequential Decision Making by Shopbot Visitors," CEPR Discussion Papers 6939, C.E.P.R. Discussion Papers.
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-31 (All new papers)
- NEP-COM-2008-08-31 (Industrial Competition)
- NEP-MKT-2008-08-31 (Marketing)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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