Consumers' Information-Gathering Behavior and the Structure of Distribution Channels

Consumers gather information about quality either by prepurchase investigation—search, or by actual trial consumption—experience. Search is more likely for goods bought infrequently, or for which search costs are low, or the quality is highly uncertain. Experience is more likely under the opposite conditions. Classification of goods as either search goods or experience goods corresponds in detail to longstanding classifications in the marketing literature such as "shopping" goods versus "convenience" goods, and Aspinwall's "yellow" and "red" categories. Consumers' information-gathering behavior determines to some degree the appropriate physicaldistribution paths and methods of sales promotion.