Buying Online: Sequential Decision Making by Shopbot Visitors

Dulleck, Uwe and Hackl, Franz and Weiss, Bernhard and Winter-Ebmer, Rudolf (September 2008) Buying Online: Sequential Decision Making by Shopbot Visitors. IHS Economics Series 225

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Abstract or Table of Contents

Abstract: In this article we propose a two stage procedure to model demand decisions by customers who are balancing several dimensions of a product. We then test our procedure by analyzing the behavior of buyers from an Austrian price comparison site. Although in such a market a consumer will typically search for the cheapest price for a given product, reliability and service of the supplier are other important characteristics of a retailer. In our data, consumers follow such a two stage procedure: they select a shortlist of suppliers by using the price variable only; finally, they trade off reliability and price among these shortlisted suppliers.;

Item Type: IHS Series
Keywords: 'E-commerce' 'Price comparison' 'Decision theory' 'Heuristics' 'Seller reputation'
Classification Codes (e.g. JEL): L81, D83
Status: Published
Date Deposited: 26 Sep 2014 10:38
Last Modified: 20 Jul 2017 23:07
URI: http://irihs.ihs.ac.at/id/eprint/1855

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