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Understanding consumer services buyers based upon their purchase channel


  • Magnini, Vincent P.
  • Karande, Kiran


Consumer services such as airlines and hotels include a proliferation of bookings through Internet-proprietary and Internet-third party sites. The other dominant channel for making airline and hotel purchases is via telephone. This research investigates differences in how buyers utilize the three channels in terms of internal and external price search, number of alternatives searched, brand loyalty, purchase frequency, risk of unavailability at the time of purchase, and Internet experience and usage. Results indicate that telephone buyers employ the least external search, consider the fewest number of alternatives during search, are the most brand loyal, are the most frequent buyers, and perceive the lowest level of risk of unavailability at the time of purchase. Conversely, Internet-third party buyers utilize the most external search, consider the largest number of alternatives, are the least brand loyal, are the least frequent buyers, and perceive the highest level of risk of unavailability. Managerial implications and suggestions for future research are provided.

Suggested Citation

  • Magnini, Vincent P. & Karande, Kiran, 2011. "Understanding consumer services buyers based upon their purchase channel," Journal of Business Research, Elsevier, vol. 64(6), pages 543-550, June.
  • Handle: RePEc:eee:jbrese:v:64:y:2011:i:6:p:543-550

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    References listed on IDEAS

    1. Weitzman, Martin L, 1979. "Optimal Search for the Best Alternative," Econometrica, Econometric Society, vol. 47(3), pages 641-654, May.
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    5. Bill Doolin & Stuart Dillon & Fiona Thompson & James L. Corner, 2005. "Perceived Risk, the Internet Shopping Experience and Online Purchasing Behavior: A New Zealand Perspective," Journal of Global Information Management (JGIM), IGI Global, vol. 13(2), pages 66-88, April.
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    7. Janiszewski, Chris & Lichtenstein, Donald R, 1999. " A Range Theory Account of Price Perception," Journal of Consumer Research, Oxford University Press, vol. 25(4), pages 353-368, March.
    8. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213-213.
    9. Liu, Yuping, 2003. "Developing a Scale to Measure the Interactivity of Websites," Journal of Advertising Research, Cambridge University Press, vol. 43(02), pages 207-216, June.
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    Cited by:

    1. Noelia Oses & Jon Kepa Gerrikagoitia & Aurkene Alzua, 2016. "Evidence of hotels’ dynamic pricing patterns on an Internet distribution channel: the case study of the Basque Country’s hotels in 2013–2014," Information Technology & Tourism, Springer, vol. 15(4), pages 365-394, January.


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