TITLE

AN EMPIRICAL INVESTIGATION OF RETURNS TO SEARCH

AUTHOR(S)
Ratchford, Brian T.; Srinivasan, Narasimhan
PUB. DATE
January 1993
SOURCE
Marketing Science;Winter93, Vol. 12 Issue 1, p73
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Using data on search and choice behavior from a local automobile market, we estimate monetary returns to search in terms of lower prices resulting from additional time invested in price search. For our analytical framework, we adapt a model developed in the job search literature to the problem of consumer search; this framework is especially useful for illuminating the relationship between time spent searching, the outcome of search, and demand and supply side variables. Our results indicate that, for this particular sample of buyers, marginal returns to search are broadly consistent with what one might expect if consumers balance costs and benefits of search, and that potential gains from additional search for lower car prices do not appear to be large for most consumers. Our study highlights many of the methodological difficulties involved in estimating returns to search, including isolating returns to different outcomes of search, and sensitivity of results to model specification and sampling error. We deal with these problems by trying to isolate time spent searching for price from other uses of search time, by deriving our model used in estimation from a specific conceptual framework, and by extensive specification testing.
ACCESSION #
4469482

 

Related Articles

  • We've lost PR war over pricing, industry execs say. Catterall, Mark; Kurylko, Diana T. // Automotive News;11/22/1999, Vol. 74 Issue 5849, p38K 

    Reports on the distrust of Great Britain's consumers toward the pricing policies of automobile manufacturers. Car prices of manufacturers Saab GB Vauxhall and Mitsubishi; Report on car prices to be released by the British Competition Commission; Finance deals offered by Mitsubishi.

  • Infiniti Q45. PAVIA-RAUCHMAN, CAROLYN // AutoWeek;6/3/2002, Vol. 52 Issue 23, p15 

    Features the Infiniti Q45 automobile. Illustration of Q45 automobile; Design of the automobile; Price for the maintenance of Q45 automobile.

  • What happened to affordable cars? Peters, Eric // Consumers' Research Magazine;Jun96, Vol. 79 Issue 6, p15 

    Focuses on the industry-wide trend in the escalation of automobile prices and the ensuing consumer purchases of lower-priced models. Re-emergent competitiveness of General Motors; Weak performance of Ford Motor Corp.; Decline in the sales of import cars because of the increase in prices; Effect...

  • Scarcity's Effects on Evaluation of Prices. Suri, Rajneesh; Kohli, Chiranjeev; Monroe, Kent B. // Advances in Consumer Research;2007, Vol. 34, p406 

    This research develops a conceptual framework which incorporates both the motivational and the interference effects of scarcity on information processing. The results from two studies show that scarcity influences consumers' perceptions of price information for a travel package with the pattern...

  • Financial Incentives and Consumer Choice. Maciejovsky, Boris // Advances in Consumer Research;2012, Vol. 40, p195 

    The article presents abstracts on the relationship between financial incentives and consumer choice including the response of consumers to conditional price promotions, the placebo effects of marketing actions, and the influence of macroeconomic threat on preference for mainstream products.

  • Too Good to be True vs. Too High to be Good: The Role of Product's Price and Form of Incentive in Sales Promotion Evaluations. Makienko, Igor // Advances in Consumer Research;2006, Vol. 33 Issue 1, p330 

    The author presents the results of his study concerning whether consumers' evaluations and purchase intentions regarding instant monetary promotions will be increased if the promoted product is overpriced than if it is normally priced. He also theorizes that conversely, consumer evaluations and...

  • A New Type of Glitter.  // Time;5/22/1972, Vol. 99 Issue 21, p87 

    The article discusses the increase in the price of gold due to the growth of industrial demand and inadequate supply which also cause active buying. It says that the industry realizes gold applications into telephone equipment, jet-engine components, and electric razors. It tells that unlike its...

  • SABMiller reports dip in demand. Parsons, Russell // Marketing Week;4/16/2009, Vol. 32 Issue 16, p5 

    The article reports that SABMiller PLC, owner of the Miller Lite, Peroni and Grolsch brands, says that sales of its lagers fell 1% in the 2008-2009 last quarter as the economic downturn impacted demand. The company says lager volumes fell 1% in the three months to March 31, 2009 on an organic...

  • No market, then why grow it? Naylor, Matthew // Farmers Weekly;12/23/2005, Vol. 143 Issue 26, p32 

    The article presents comments on the role of supply and demand in boosting profits in the farming business. A businessman must focus on the customers' wants and needs if he wants to make a good and secure profit regardless of what he produces. It is also necessary to know why the customers want...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sign out of this library

Other Topics