Clicking instead of walking: Consumers searching for information in the electronic marketplace

Abstract

n theory the Web provides vast possibilities for I information search and comparisons unconstrained by time and place, which have traditionally restricted consumer search behavior in the physical marketplace. Because of this reduction of search costs, studies have taken the economic perspective in analyzing the efficiency of the electronic market (for example, Brynjolfsson & Smith, 2000) and implications for consumers searching for information online (for example, Hoque & Lohse, 1999; Wu, Ray, Geng & Whinston, 2004). Although none have yet focused strictly on paid search, the implications are probably transferable.This article looks at surveys that compare search cost between online and physical environments. In addition, using search pages resembling Yahoo! paid search result pages in online experiments, we studied the effects of personal and system factors on the number of websites visited and time spent per site.Several reasons suggest that conventional economic theories do not adequately explain consumer online search behavior. First, the fundamental premise of economic theory is that the amount of information search will increase when search costs are reduced. Empirical evidence, however, has not shown such behavior with online shopping. For example, by examining the shopping patterns of online users over time, Johnson et al. (2004) found that the amount of online search is actually quite limited. On average, households visit only 1.2 book sites, 1.3 CD sites and 1.8 travel sites during a month in each product category. Another study by Jansen et a]. (2000) Second, it is cognitive, not physical effort that affects consumers searching for information online. Although physical efforts such as going to stores have been reduced to finger clicks, it is possible that cognitive challenges of interacting with computers and online information exist that potentially limit consumer information search in the electronic marketplace.In addition, the Internet has transformed consumer behavior in two ways: (1) by transforming consumers into online shoppers requiring the use of computers and (2) by transforming physical stores into an online market space that is information technology intensive. In order to understand consumer online search behavior, it is necessary to include the interaction between the combined roles of consumerkomputer user and the information technology provided by the online stores. These factors impose certain search costs on consumers and influence their online search behavior.

Travelers’ Information-Seeking Behaviors

“…Traditionally, tourism service providers and suppliers use mass media and other print media such as brochures, to provide information for travelers, with travel agents playing an important role in distributing the travel information (Andereck, 2005;Zhou, 1997aZhou, , 1998. Chiang (2006) describes information searching as a stage of the decision-making process during which consumers actively collect and utilize information from internal and/or external sources to make better purchase decisions. Dey and Sarma (2010) observe that information acquisition may be regarded as the starting point in the vacation decision-making process and that information acquisition is essential for destination selection and on-site decisions concerning accommodation, transportation, and tours.…”

The Adoption of Restaurant-Based E-Service

“…The implications for consumers in terms of availability of restaurant information will require continued attention and investigation (Chiang, 2006). One of the new "hot" applications will be for people traveling, where the Downloaded by [Dalhousie University] at 05:42 26 December 2014 mobile searches will be focused on local applications.…”

Search Costs, Demand Structure and Long Tail in Electronic Markets: Theory and Evidence

“…However, since information in online environments is highly visual and perceptual, it potentially increases cognitive costs that affect consumers' search for information (Chiang 2006). Furthermore, information search online is characterized by human-computer interaction requiring consumers to have increased ability and knowledge in acquiring information (Hodkison et al, 2000).…”