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Offline and Online Search in Used Durables Markets

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  • Singh, Sonika
  • Ratchford, Brian T.
  • Prasad, Ashutosh

Abstract

This study examines how different information sources are used by consumers prior to their purchase of used durable goods, specifically used cars. We examine how online and offline search are related. Categories of online sources are dealer websites and resale websites, and of offline sources are print media and dealer visits. Prior research on new car purchases finds that online sources substitute for traditional, offline sources such as dealer visits. We examine whether this theory extends to used-car purchases and distinguish between dealer websites and resale websites (a distinction relevant to used-goods markets) by collecting data from a sample of used-car buyers. Because search in different sources can be interrelated, and due to data censoring, we build and estimate a simultaneous equations Tobit model. In contrast to existing research, we find that online search on dealer websites is complementary to and not a substitute for dealer visits. This complementary effect highlights the importance of dealers’ web presence in used markets.

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  • Singh, Sonika & Ratchford, Brian T. & Prasad, Ashutosh, 2014. "Offline and Online Search in Used Durables Markets," Journal of Retailing, Elsevier, vol. 90(3), pages 301-320.
    • Handle: RePEc:eee:jouret:v:90:y:2014:i:3:p:301-320
    DOI: 10.1016/j.jretai.2014.03.005
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    Cited by:

    1. Singh, Sonika & Jang, Sungha, 2022. "Search, purchase, and satisfaction in a multiple-channel environment: How have mobile devices changed consumer behaviors?," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    2. Riquelme, Isabel P. & Román, Sergio & Iacobucci, Dawn, 2016. "Consumers' Perceptions of Online and Offline Retailer Deception: A Moderated Mediation Analysis," Journal of Interactive Marketing, Elsevier, vol. 35(C), pages 16-26.
    3. Yijuan Chen & Xiangting Hu & Sanxi Li, 2022. "Complementarity between online and offline channels for quality signaling," Journal of Economics, Springer, vol. 135(1), pages 49-74, January.
    4. Hochstein, Bryan & Bolander, Willy & Christenson, Brett & Pratt, Alexander B. & Reynolds, Kristy, 2021. "An Investigation of Consumer Subjective Knowledge in Frontline Interactions," Journal of Retailing, Elsevier, vol. 97(3), pages 336-346.
    5. Jang, Sungha & Prasad, Ashutosh & Ratchford, Brian T., 2017. "Consumer Search of Multiple Information Sources and its Impact on Consumer Price Satisfaction," Journal of Interactive Marketing, Elsevier, vol. 40(C), pages 24-40.
    6. Yashar Dehdashti & Brian T. Ratchford & Aidin Namin, 2018. "Who searches where? A new car buyer study," Journal of Marketing Analytics, Palgrave Macmillan, vol. 6(2), pages 44-52, June.
    7. Mencarelli, Rémi & Rivière, Arnaud & Lombart, Cindy, 2021. "Do myriad e-channels always create value for customers? A dynamic analysis of the perceived value of a digital information product during the usage phase," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    8. Davis, Robert & Sheriff, Kevin & Owen, Kim, 2019. "Conceptualising and measuring consumer authenticity online," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 17-31.
    9. Shakir Goraya, M. Awais & Zhu, Jing & Akram, Muhammad Shakaib & Shareef, Mahmud Akhter & Malik, Aneela & Bhatti, Zeeshan Ahmed, 2022. "The impact of channel integration on consumers’ channel preferences: Do showrooming and webrooming behaviors matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    10. Marjolaine Bezançon & Denis Guiot & Emmanuelle Le Nagard, 2019. "Le rôle de la contagion physique négative dans l'achat d'un produit d'occasion vendu en ligne," Post-Print halshs-01957512, HAL.
    11. Dutta, Champa Bati & Das, Debasish Kumar, 2017. "What drives consumers' online information search behavior? Evidence from England," Journal of Retailing and Consumer Services, Elsevier, vol. 35(C), pages 36-45.
    12. Flavián, Carlos & Gurrea, Raquel & Orús, Carlos, 2019. "Feeling Confident and Smart with Webrooming: Understanding the Consumer's Path to Satisfaction," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 1-15.
    13. Marcello M. Mariani & Michela Matarazzo, 2021. "Does cultural distance affect online review ratings? Measuring international customers’ satisfaction with services leveraging digital platforms and big data," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1057-1078, December.
    14. Andreas Engelmann & Gerhard Schwabe, 2024. "Certified data chats for future used car markets," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-22, December.
    15. Langan, Ryan & Besharat, Ali & Varki, Sajeev, 2017. "The effect of review valence and variance on product evaluations: An examination of intrinsic and extrinsic cues," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 414-429.
    16. Flavián, Carlos & Gurrea, Raquel & Orús, Carlos, 2020. "Combining channels to make smart purchases: The role of webrooming and showrooming," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).

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