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Search Costs in Consumer Product Choice: Does Delaying the Provision of Information increase Choice Efficiency?

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  • Axel Sonntag

    (University of East Anglia)

Abstract

Using online price comparison and shopping platforms makes experiencing slow connections, lags and waiting times for information an unfortunate reality. However, little attention has been paid to analyzing the effects of delayed provision of information on product choice behavior. In this article, I introduce an information processing model to derive search pattern predictions and test them in a multi-attribute choice laboratory experiment. Information requested during a search process was not provided immediately but after short time delays. Increasing these waiting times reduced the amount of looked-up information but did not affect choice quality. It seems that high time delays nudged decision-makers to think twice about how much and what kind of information should be looked-up, whereas low time delays induced inefficient over-searching. As technological advances are expected to further reduce Internet delay times, the observed change in search behavior could affect the profitability of manufacturers' production and retailers' advertising strategies.

Suggested Citation

  • Axel Sonntag, 2013. "Search Costs in Consumer Product Choice: Does Delaying the Provision of Information increase Choice Efficiency?," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 13-05, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:wcbess:13-05
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    References listed on IDEAS

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    More about this item

    Keywords

    search costs; time delays; multi-attribute consumer product choice; outcome quality; choice efficiency;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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