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Offline and Online Search in Used Durables Markets

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  • Singh, Sonika
  • Ratchford, Brian T.
  • Prasad, Ashutosh

Abstract

This study examines how different information sources are used by consumers prior to their purchase of used durable goods, specifically used cars. We examine how online and offline search are related. Categories of online sources are dealer websites and resale websites, and of offline sources are print media and dealer visits. Prior research on new car purchases finds that online sources substitute for traditional, offline sources such as dealer visits. We examine whether this theory extends to used-car purchases and distinguish between dealer websites and resale websites (a distinction relevant to used-goods markets) by collecting data from a sample of used-car buyers. Because search in different sources can be interrelated, and due to data censoring, we build and estimate a simultaneous equations Tobit model. In contrast to existing research, we find that online search on dealer websites is complementary to and not a substitute for dealer visits. This complementary effect highlights the importance of dealers’ web presence in used markets.

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  • Singh, Sonika & Ratchford, Brian T. & Prasad, Ashutosh, 2014. "Offline and Online Search in Used Durables Markets," Journal of Retailing, Elsevier, vol. 90(3), pages 301-320.
    • Handle: RePEc:eee:jouret:v:90:y:2014:i:3:p:301-320
    DOI: 10.1016/j.jretai.2014.03.005
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    6. Marjolaine Bezançon & Denis Guiot & Emmanuelle Le Nagard, 2019. "Le rôle de la contagion physique négative dans l'achat d'un produit d'occasion vendu en ligne," Post-Print halshs-01957512, HAL.
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    8. Marcello M. Mariani & Michela Matarazzo, 2021. "Does cultural distance affect online review ratings? Measuring international customers’ satisfaction with services leveraging digital platforms and big data," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1057-1078, December.
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    10. Riquelme, Isabel P. & Román, Sergio & Iacobucci, Dawn, 2016. "Consumers' Perceptions of Online and Offline Retailer Deception: A Moderated Mediation Analysis," Journal of Interactive Marketing, Elsevier, vol. 35(C), pages 16-26.
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