Consumer acquisition of product information and subsequent purchase channel decisions

Abstract

We examine consumer use of the Internet as a product information gathering tool (distinct from the use of it for transaction completion). We use data from surveys to estimate how consumer use of different marketing information channels (Internet, print, catalog, broadcast) affects the choice of channel for purchasing the good (Internet, retail, direct mail). Across many product categories, we find that Internet product information gathering increases the likeliness of purchase in other channels. Similar effects from other informational channels are not observed. Our findings have implications for measuring the retail impact of the Internet, the assumption of better informed consumers, the competitiveness of off-line, as well as online markets, and the management of “channel conflict.”

Citation

Ward, M.R. and Morganosky, M. (2002), "Consumer acquisition of product information and subsequent purchase channel decisions", Baye, M.R. (Ed.) The Economics of the Internet and E-commerce (Advances in Applied Microeconomics, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 231-255. https://doi.org/10.1016/S0278-0984(02)11034-0