Consumer Information Acquisition Research Articles

Trends in the Utilization of Outsourced Marketing Departments by Landlords of Boarding Rooms in Ho Chi Minh City

In an era marked by escalating competition, the adoption of Outsourced Marketing practices emerges not only as a cost-saving measure but also as a catalyst for the enhancement of operational efficiency, and market competitiveness. The deployment of outsourced marketing strategies proves to be especially germane to the operational business of boarding-room enterprises in Ho Chi Minh City, rooted in features of operational scale, industry domain specificity, and responsiveness to evolving technological paradigms and consumer information acquisition demand. Fundamental advantages of outsourced marketing services to boarding room landlords encompass cost mitigation; revenue augmentation; simultaneously, increased time for specialized pursuits, brand equity amplification, and recognition level for the rental rooms system. This article principally discusses the trends in the utilization of outsourced marketing departments by boarding room landlords in Ho Chi Minh City, according to three focal domains: (1) The scale of outsourcing, (2) Process of managing and performing outsourced marketing, (3) The influence of outsourced marketing on the operational outcomes of boarding rooms enterprises.

Prepurchase Information Acquisition and Credible Advertising

Consumers can decide whether to acquire more information about their valuations prior to purchase. In this paper, we examine pricing and advertising strategies when consumers can engage in prepurchase information acquisition. We show that consumer information acquisition can increase valuation heterogeneity and undermine a firm’s ability to extract consumer surplus. As a result, interestingly, a higher product quality can exert a nonmonotonic impact on equilibrium information acquisition, hurt firm profitability, and lead to lower consumer surplus. We also demonstrate that prepurchase information acquisition can be an endogenous mechanism to enable credible advertising in a cheap-talk setting. We show that quality claims in advertisements can be informative even when the firm can freely misrepresent its advertising message. Informative advertising can arise because a higher perceived quality can not only increase consumers’ expected value, but it also induces more information acquisition and thus hurts the firm’s ability to extract consumer surplus. This novel explanation for the credibility of cheap-talk advertising is distinguished from those identified in the literature (e.g., matching between firm types and heterogenous consumers, restrictive communication on multidimensional attributes). Moreover, we show that a higher quality can soften competition by inducing more information acquisition, thus benefiting the rival firm’s profitability. This paper was accepted by Matthew Shum, marketing.

Impact of consumer information acquisition confidence, social outcome confidence on information search and sharing

PurposeThis study aims to highlight the impact of information acquisition confidence and social outcome confidence on information search and information share intention. Moreover, the role of subjective knowledge is analyzed as a mediating variable among these relations.Design/methodology/approachThis study conducted a survey which generated 233 valid responses. The data were analyzed using component factor analysis and structural equation modeling. Whereas, to examine the mediating effect, Hayes and Preacher (2008) model for statistical mediation analysis was used.FindingsThe results mainly supported the model by confirming that subjective knowledge, information acquisition confidence and social outcome confidence are positively related to information search intention. No association between information acquisition confidence and information sharing intention was found. The study's findings also suggested a positive association of social outcome confidence, subjective knowledge and information acquisition confidence with information share intention. Moreover, the results revealed that there is a significant and positive mediating effect of subjective knowledge between information acquisition confidence and information search intention. Subjective knowledge also acts as a mediator in the relationship between social outcome confidence and information sharing intention.Practical implicationsThis study will be helpful for marketers and policymakers for designing marketing strategies which can enhance the flow of information. Moreover, this study will ensure the importance of information to marketers.Originality/valueThis paper fulfills an identified need to study the impact of consumer information acquisition confidence, social outcome confidence on information search and sharing with mediating role of subjective knowledge.

Why do not you read the label? – an integrated framework of consumer label information search

AbstractThis article facilitates deeper insight into label‐related consumer information acquisition behaviour. An integrated framework of label information search (LIS) has been developed based on a synthesis of related literature and explorative research conducted by analysing online discussions among customers (netnography). The framework focuses on three main groups of personal factors that serve as antecedents of LIS: general personal factors (e.g. health consciousness and socio‐demographics), label‐related personal factors (e.g. label‐related self‐efficacy, trust in labels and the perceived usefulness of labels) and product category‐related personal factors (trust in food products, enduring involvement, experience and perceived quality differences). Important characteristics of the framework are its process‐oriented nature and the dynamically changing relationships among its concepts. LIS is an antecedent to and a consequence of influencing factors. This article offers managerial implications and serves to incite future inquiry in this field.

An examination of consumer browsing behaviors

PurposeBrowsing is a common consumer behavior, but it has not been researched extensively. The aim of this paper is to fill some of the gaps in the research.Design/methodology/approachDrawing on literature from different areas, consumers' browsing experiences, browsing patterns, and factors influencing browsing activities are empirically examined. A combination of interviews and shopping trips with informants to examine the issues are used.FindingsThe results show that browsing serves both functional and recreational purposes. Consumers vary by the degree to which they browse functionally or recreationally. Browsing behaviors are influenced by both consumer characteristics and the retail environment. Browsing is a powerful consumer information acquisition activity and has both desired and undesired consequences for consumer purchases. Consumers use various strategies to cope with the undesired consequences.Practical implicationsExploration of browsing patterns and factors influencing these patterns suggests important managerial implications for enhancing desirable browsing and reducing unnecessary browsing.Originality/valueThe conceptualization and findings of this research contribute to two areas of research: consumer information search and consumer shopping behaviors in retail environments. An examination of the role of browsing offers an empirical extension to the information acquisition framework.

What do consumers really know about spyware?

Technology has revolutionized information collection and distribution to the point where marketers have expanded and implemented new technologies to enable efficient consumer information acquisition. Such sophisticated data collection methods have raised serious concerns about consumer privacy, as some marketers have quickly discovered ways to abuse this power.

Functional and Aesthetic Information Needs Underlying The Pleasure Travel Experience

Consumer information acquisition has largely focused on decision-making or functional needs. Recently, a set of complementary information needs (i.e., hedonic, aesthetic, and social) have been introduced I the consumer behavior literature. This study examines functional and aesthetic information needs in a tourism consumption context, specifically pre-trip information needs are shown to be at the core of information acquisition with product knowledge, aesthetic imagery and planning efficiency needs at the “periphery.” Suggestions for destination marketing communication strategies and future research are presented.

A Test of Services Marketing Theory: Consumer Information Acquisition Activities

The author explores the information needs of service consumers. In the purchase decision process, search behavior is motivated in part by perceived risk and the consumer's ability to acquire relevant information with which purchase uncertainty can be addressed. Marketing theory suggests that consumers use information sources in a distinctive way to reduce the uncertainty associated with services. Hence, six hypotheses are developed to test the information acquisition of service buyers. An experimental approach is employed to compare, in a prepurchase context, the information sources used by consumers of services and those used by consumers of goods. The resulting data support the predictions offered and extend marketing theory.

A Test of Services Marketing Theory: Consumer Information Acquisition Activities

The author explores the information needs of service consumers. In the purchase decision process, search behavior is motivated in part by perceived risk and the consumer's ability to acquire relevant information with which purchase uncertainty can be addressed. Marketing theory suggests that consumers use information sources in a distinctive way to reduce the uncertainty associated with services. Hence, six hypotheses are developed to test the information acquisition of service buyers. An experimental approach is employed to compare, in a prepurchase context, the information sources used by consumers of services and those used by consumers of goods. The resulting data support the predictions offered and extend marketing theory.

A Dynamic Model of the Transmission of Price Information in Auto Insurance Markets

A Dynamic Model of the Transmission of Price Information in Auto Insurance Markets Abstract A model of the demand structure of auto insurance markets is constructed in which consumers learn about firms through friends and neighbors. Consumers firms when the price differential exceeds a certain threshold, the switch cost. Data from New York and Alberta auto insurance markets are used to measure costs and the effective speed of transmission of information in these markets. Introduction A dominant theme in the literature exploring the implications of imperfect knowledge on the part of market participants has been that the way in which information is transmitted among and processed by agents is a critical determinant of market dynamics and outcomes [Rothschild (1973), Holmstrom (1984), Rogerson (1983), Shapiro (1982)]. In discussing the consumer's problem of searching for the lowest price in markets with price dispersion, Rothschild (1974) noted that, although demand functions are determined by the rules which searchers follow, very little empirical work had been done to determine how consumers actually gather information in these markets. In this article, a model of the demand structure of auto insurance markets is constructed which is consistent with the observed process by which consumers gather price information in those markets. The model is static on the firm side with no entry or exit. At period t = 0 a given group of firms sets prices which do not vary over the remaining periods. Consumers gradually learn about these prices. Proceeding in this manner allows modelling in detail the dynamics of the demand structure, generating the market shares of all firms in each time period. The focus of the literature on price dispersion in markets has been on equilibrium outcome [Carlson and McAfee (1983), Pratt, Wise and Zeckhauser (1979)] which in real-world markets may be reached only after many years, or not at all, given the random events and structural changes in the institutional environment. Constructing a dynamic model of the demand structure allows measurement of the effective speed of transmission of information in the markets for auto insurance in Alberta from 1976 through 1980 and in New York State from 1977 through 1983. The result is a model in which markets slowly tend to an equilibrium as agents learn about the structure of the marketplace, rather than one in which markets are always in equilibrium, instantly adjusting to exogenous shocks. The focus is on only the demand side of the market. Equilibrium search models which illustrate the behavior of firms rely on simplifying assumptions regarding the demand structure. In this model the complexity of the demand structure precludes the use of analytical techniques on the firm side. Dahlby and West (1986) have recently used an extensive set of auto insurance data from Alberta to test Carlson and McAfee's equilibrium price dispersion model which makes the following assumptions: (1) consumers know the distribution of prices, (2) all firms are equally likely to be sampled in the search process, and (3) the market is in equilibrium. In the model presented in this article, on the other hand, consumers are not assumed to know the distribution of prices. More importantly, a key feature which is not present in other search models is that a firm with larger market share is more likely to be sampled in the search process because it will have more consumers disseminating information about the firm, and will generally have more marketing outlets facilitating contact with prospective consumers. The model is fitted to data from New York State and the Dahlby and West study, and the results are compared. The empirical evidence on consumer information acquisition patterns and the existence of price dispersion in auto insurance markets are first discussed. Then the model of consumer demand is developed and empirically tested, followed by a summary. …

Individual and Group Consumer Information Acquisition in Brand Choice Situations

Drawing on small groups research, family sociology, and consumer information processing research, behavioral process methodology is used to compare information acquisition depth and decision time across individuals, ad hoc cross-sex dyads, and married couples. Ad hoc dyads and nominal groups (statistically paired individuals) acquired more information than did married couples; ad hoc dyads acquired more information than did individuals. The implications of the findings for our understanding of individual and group consumer information acquisition are discussed.

Comments on "The Economics of Consumer Information Acquisition"

substantive part of Wilde's paper (this issue) begins with claim that the fundamental articles in economics literature on consumer information acquisition are those of Stigler . . . and Nelson. Such a list should also include Simon (1957) and Marschak and Radner (1972). Wilde discusses two of traditional criticisms of stream of research literature associated with model he presents. These two are nature of sampling procedure and modeling of just one side of market. It is true that Wilde's model is only a model of consumer. It is interesting to note that earlier a model was put forward by Fitzroy (1966) which could guide firms in optimal provision of information to consumers. Fitzroy's (1966) model, like model in this paper, was based on Bellman's (1957) technique of dynamic programming. This raised issue of whether a dynamic programmingbased model could be developed of information provision and acquisition. This is first possible subject for future research suggested by Wilde's paper. There is, however, a third major criticism of this general approach which is probably at least as important as two reviewed. This is that these models ignore quantity purchased as a decision variable in markets. One empirical study of this theory reached these conclusions: The tests indicate theory is of some use in explaining brand choice behavior, but relatively unimpressive results suggest that a restructured theory of brand loyalty should be developed for future tests. However, a richer model of household-level brand loyalty towards a product should include as an independent variable quantity bought by household (Farley 1965, p. 314). This, then, is second possible subject for future research suggested by Wilde's paper.

The Economics of Consumer Information Acquisition

Traditionally economists and consumer researchers have studied consumer behavior, especially under imperfect information, without paying a great deal of attention to one another. This is likely due to differences both in purpose and technique. Consumer researchers are generally concerned with individual choice, while economists focus on market outcomes. Even when economists propose detailed models of individual behavior, they tend to use these models to deduce propositions concerning overall market structure. Furthermore, consumer researchers draw data from both surveys and experiments, sources which economists distrust. This paper surveys recent theoretical work on consumer information acquisition, primarily by economists, arguing that consumer researchers and economists have much to learn from each other. There are two reasons for concentrating on theory. First, comprehensive surveys by James Bettman (1977) and Joseph Newman (1977) deal with the empirical literature. Second, and significantly, accompanying the recent attention afforded consumer information acquisition This paper surveys recent theoretical work by economists on consumer information aquisition. Both models of individual behavior and models of market equilibrium are discussed. These models are used to illustrate the point that there are significant advantages to greater collaboration between economists and consumer researchers.

Comments on "The Economics of Consumer Information Acquisition"

Unbeknown to either of us, Wilde (this issue) and I have been pursuing similar lines of inquiry. We are both investigating optimal consumer decision rules when the consumer is faced with some attributes of a good whose qualities he can determine prior to purchase (search attributes) and with some other attributes for the same good whose qualities he can determine only after purchase (experience attributes). It is not surprising, therefore, that I think this is a particularly fruitful line of inquiry. Since Wilde and I are in such general agreement, little purpose can be served by my detailing the little points of disagreement between us. Instead, I would like to focus on a question that Wilde neglects. Why should anybody be interested in the consumer searching, on one hand, or experiencing, on the other? This distinction between search attributes and experience attributes is the most decisive determinant of market behavior for a considerable number of characteristics important for both marketing and economics. Let me give you some feel for this proposition. To make the analysis tractable, I have assumed that goods differ by a single parameter, R = the ratio of the variance by brands in the utility of a representative consumer of all experience attributes to this variance for search attributes. The greater the value of R, the more a consumer will choose to get his information by way of experience and the less by way of search. Hence R measures the relative importance of experience and search. Clearly R is unobservable. However, one can get observable implications from the behavior of R. We can determine from theory whether some given observable market variable will be positively or negatively related to R. Those market variables which are both positively related to R or both negatively related to R will be positively related to each other. When one market variable is positively related to R and one is

A Behavioral Process Approach to Information Acquisition in Nondurable Purchasing

A behavioral process method was used to explore the relationship of individual difference factors to consumer information acquisition behavior. Findings included: (1) the mean proportion of available information actually acquired was 2%, and (2) information search was concentrated on six of the 35 available information dimensions; increased information acquisition was related (3) positively to the product's importance for the individual, (4) positively to being an optimizer rather than a satisficer, (5) positively to high amounts of past purchasing experience with the product, and (6) negatively to attitudinal brand loyalty.