Offline and Online Search in Used Durables Markets

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.

The Effects of Online and Offline Information Sources on Multiple Store Patronage

“…result of this study is consistent with Singh et al's (2014) finding that in the context of durable goods, older consumers tend to collect information from offline physical stores. Sports shoes are shopping goods, even though they are not durable goods; thus, the product's characteristics possibly play an important role in moderating the impact of age on patronage set size.…”

“…This is because even though Luceri and Latusi (2012) studies in the 2000s emphasized specific online shopper characteristics (Kaufman-Scarborough and Lindquist, 2002;Keng Kau et al, 2003), online shopper segments and traditional offline shopper segments have become similar (Ganesh et al, 2010). Singh et al (2014) also identified that online information from different senders has varied impacts on store choice behavior. This shows that a more detailed division of the information sources is required rather than analyzing if the information is online or offline.…”

Le rôle de la contagion physique négative dans l’achat d’un produit d’occasion vendu en ligne

“…L'accès aux circuits est restreint pas leur localisation et leurs horaires, l'offre est limitée (Singh et al, 2014).…”

“…Comme pour l'achat en ligne de façon générale, possibilité d'achat 24h sur 24h et en restant chez soi (Wolfinbarger et Gilly, 2001). Accès à une offre de produits plus large (Cameron et Galloway, 2005 ;Ghose et al, 2006 ;Singh et al, 2014).…”

A Web based Decision Support System for Used Car Pricing

“…According to recent statistics, used-car sales generate approximately half of the total vehicle trade annually in terms of volume in the U.S. [1]. Therefore it is important to study the used-car market where price is one of the most important determinants of sales [2]. Setting the asking price high may discourage any potential buyer, which practically hinders the buyer to visit the dealership and/or contacting the private seller.…”