Purchase deadline as a moderator of the effects of price uncertainty on search duration
A longstanding theoretical tenet in the economic psychology literature is that consumers respond to greater price uncertainty by increasing search. The generality of this tenet was investigated in the context of a moderating variable, purchase deadline. It was hypothesized that the effect of increased price uncertainty, as reflected by both cross-sectional price variability and longitudinal price variability, was moderated by temporal proximity to a purchase deadline. The hypothesis was tested by analyzing purchase data from a sample of consumers with known purchase deadlines searching for rental trucks. The results indicated that search increased in response to greater price uncertainty for distant deadlines but decreased in response to greater price uncertainty for proximal deadlines.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Loewenstein, George, 1987. "Anticipation and the Valuation of Delayed Consumption," Economic Journal, Royal Economic Society, vol. 97(387), pages 666-684, September.
- Nitin Mehta & Surendra Rajiv & Kannan Srinivasan, 2003. "Price Uncertainty and Consumer Search: A Structural Model of Consideration Set Formation," Marketing Science, INFORMS, vol. 22(1), pages 58-84, June.
- Wolpin, Kenneth I, 1987. "Estimating a Structural Search Model: The Transition from School to Work," Econometrica, Econometric Society, vol. 55(4), pages 801-817, July.
- Van den Berg, Gerard J., 2000.
"Duration Models: Specification, Identification, and Multiple Durations,"
9446, University Library of Munich, Germany.
- Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460 Elsevier.
- Brian T. Ratchford, 1982. "Cost-Benefit Models for Explaining Consumer Choice and Information Seeking Behavior," Management Science, INFORMS, vol. 28(2), pages 197-212, February.
- Bucklin, Louis P, 1969. "Consumer Search, Role Enactment, and Market Efficiency," The Journal of Business, University of Chicago Press, vol. 42(4), pages 416-438, October.
- Rothschild, Michael, 1974. "Searching for the Lowest Price When the Distribution of Prices Is Unknown," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 689-711, July/Aug..
- Moorthy, Sridhar & Ratchford, Brian T & Talukdar, Debabrata, 1997. " Consumer Information Search Revisited: Theory and Empirical Analysis," Journal of Consumer Research, Oxford University Press, vol. 23(4), pages 263-277, March.
- George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213-213.
- Simonson, Itamar, 1992. " The Influence of Anticipating Regret and Responsibility on Purchase Decisions," Journal of Consumer Research, Oxford University Press, vol. 19(1), pages 105-118, June.
- Smith, Gerald E. & Venkatraman, Meera P. & Dholakia, Ruby Roy, 1999. "Diagnosing the search cost effect: Waiting time and the moderating impact of prior category knowledge," Journal of Economic Psychology, Elsevier, vol. 20(3), pages 285-314, June.
- Shani, Yaniv & Tykocinski, Orit E. & Zeelenberg, Marcel, 2008. "When ignorance is not bliss: How feelings of discomfort promote the search for negative information," Journal of Economic Psychology, Elsevier, vol. 29(5), pages 643-653, November.
- Urbany, Joel E, 1986. " An Experimental Examination of the Economics of Information," Journal of Consumer Research, Oxford University Press, vol. 13(2), pages 257-271, September.
- Füsun F. Gönül & Frenkel Ter Hofstede, 2006. "How to Compute Optimal Catalog Mailing Decisions," Marketing Science, INFORMS, vol. 25(1), pages 65-74, 01-02.
- Michael Rothschild, 1974. "Searching for the Lowest Price When the Distribution of Prices Is Unknown: A Summary," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 3, number 1, pages 293-294 National Bureau of Economic Research, Inc.
- Jacobson, Robert & Obermiller, Carl, 1990. " The Formation of Expected Future Price: A Reference Price for Forward-Looking Consumers," Journal of Consumer Research, Oxford University Press, vol. 16(4), pages 420-432, March.
- Ratchford, Brian T, 2001. " The Economics of Consumer Knowledge," Journal of Consumer Research, Oxford University Press, vol. 27(4), pages 397-411, March.
- Tülin Erdem & Michael P. Keane, 1996. "Decision-Making Under Uncertainty: Capturing Dynamic Brand Choice Processes in Turbulent Consumer Goods Markets," Marketing Science, INFORMS, vol. 15(1), pages 1-20.
- Goldman, Arieh & Johansson, J K, 1978. " Determinants of Search for Lower Prices: An Empirical Assessment of the Economics of Information Theory," Journal of Consumer Research, Oxford University Press, vol. 5(3), pages 176-186, December.
- Kujala, Jouni T. & Johnson, Michael D., 1993. "Price knowledge and search behavior for habitual, low involvement food purchases," Journal of Economic Psychology, Elsevier, vol. 14(2), pages 249-265, June.
- Loibl, Cäzilia & Hira, Tahira K., 2009. "Investor information search," Journal of Economic Psychology, Elsevier, vol. 30(1), pages 24-41, February.
- Newman, Joseph W & Lockeman, Bradley D, 1975. " Measuring Prepurchase Information Seeking," Journal of Consumer Research, Oxford University Press, vol. 2(3), pages 216-222, December.
When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:32:y:2011:i:1:p:33-44. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If references are entirely missing, you can add them using this form.