Buying Online: Sequential Decision Making by Shopbot Visitors

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


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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
Date Deposited: 26 Sep 2014 10:38
Last Modified: 03 May 2024 11:00
ISBN: 1605-7996

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