Antecedents and outcomes of market mavenism: Insights based on survey and purchase data

Abstract

In this study, we explore three key dimensions (price search, human capital and perceived benefits) for their roles as influencers of market mavenism behavior by consumers. We also investigate the effect of market mavenism on several managerially relevant and observable market outcomes, such as cross-store price savings and deal proneness are explored. A primary data collection strategy that surveys consumers on their stated price search behavior and attitudes towards price search links explicitly with consumers' actual, observed purchase behavior. The findings are consistent with economics of information model for market mavens. Specifically, we find that mavens engaged in more cross-store price search and perceived a greater price dispersion among retailers. Along the human capital dimension, market knowledge of price and investment search were positive influencers of market mavenism. Lastly, the perceived benefit of prior market knowledge reduced future search for mavens, and reduced their need for cross-store price search.