Revisiting the two-stage choice model: an empirical study of consumer choice on brand website visits

In consumer choice behaviour literature, a two-stage choice model serves as a base theory where choice behaviour is decomposed into a consideration stage plus a choice stage. Yet, this default model has been increasingly challenged by the ‘limited consumer search’ school of thought because consumers do not necessarily review all products in a choice set before making decisions, but frequently draw on external information as mental short cuts. Methodologically, the choice behaviour in stage 1 has traditionally been latent because data that directly observe how consumers form their consideration sets by eliminating alternatives are lacking. This study continues the ‘limited consumer search’ line of reasoning and proposes an aided non-compensatory process in choice stage 1, where consumers reduce brand website alternatives by using online ratings to arrive at a consideration set. We use observed Web analytics data to unveil the stage 1 choice process and also the transition from stage 1 to stage 2, which is in need of further research based on extant literature. Lastly, we cross-validate our model with two types of websites (i.e. search vs. experience/credence) and find our model is contingent on the type of website content, where consumers’ inclination to use online ratings for decision-making varies.