Search deterrence in experimental consumer goods markets

Brown, Alexander; Viriyavipart, Ajalavat; Wang, Xiaoyuan

doi:10.1016/j.euroecorev.2018.03.001

Cited by 3 publications

(5 citation statements)

References 38 publications

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“…In a duopoly search deterrence setting, Brown et al. (2018) allow the buyer to reject the offer from a second seller, and find little evidence of buyers choosing not to maximize their surplus in these cases.…”

Section: Resultsmentioning

confidence: 99%

“…However, some experimental evidence indicates that this may not be a big concern. In a duopoly search deterrence setting, Brown et al (2018) allow the buyer to reject the offer from a second seller, and find little evidence of buyers choosing not to maximize their surplus in these cases. 25 Hypothesis 2 predicts that a seller's cheap talk should not influence the buyer's decision.…”

Section: Cheap Talk Affects Search: Claimed Exploding Offers Lead To ...mentioning

confidence: 99%

“…3 The experimental studies on search deterrence focus on exploding offers, without accounting for credibility issues (Tang et al, 2009;Lau et al, 2014). Among these, the study most related to the current one is Brown et al (2018). The authors base their experimental design on the twoperiod duopoly model in Armstrong and Zhou (2016), and study sellers' use of and buyers' responses to exploding offers under full commitment.…”

Section: Related Literaturementioning

confidence: 99%

“…Among these, the study most related to the current one is Brown et al. (2018). The authors base their experimental design on the two‐period duopoly model in Armstrong and Zhou (2016), and study sellers' use of and buyers' responses to exploding offers under full commitment.…”

Section: Related Literaturementioning

confidence: 99%

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Commitment and cheap talk in search deterrence

Pan

Zhao

2023

The RAND J of Economics

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We investigate the role of sellers' commitment power in discouraging consumer search. Theoretically, lack of commitment power transforms sellers' search‐deterring claims into cheap talk, eliminating sellers' ability to deter search in some market environments. However, our experiments show buyers' search decisions are significantly affected by sellers' cheap talk. When future prices are not adjustable, sellers falsely claim exploding offers to deter search. When future prices are adjustable, sellers falsely claim low future prices to lure consumers to return after search and exploit these “captive” consumers with subsequent price hikes. A behavioral model with naïve buyers explains our experimental findings.

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Section: Resultsmentioning

confidence: 99%

Section: Cheap Talk Affects Search: Claimed Exploding Offers Lead To ...mentioning

confidence: 99%

Section: Related Literaturementioning

confidence: 99%

Section: Related Literaturementioning

confidence: 99%

See 2 more Smart Citations

Commitment and cheap talk in search deterrence

Pan

Zhao

2023

The RAND J of Economics

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“…how consumers think, how frequently they use a product, their purchasing habits with respect to where they buy, and their level of satisfaction with the product purchased are all very important in market research (Farm, 2017). The knowledge about human behavior with respect to the products being offered can also be used to motivate people to buy (Brown, Viriyavipart, & Wang, 2018).…”

Section: Knowingmentioning

confidence: 99%

Principais Direcionadores de Compra de Carnes em Hipermercados

2020

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RESUMO Objetivo: a urbanização e migração para os grandes centros tem provocado mudanças no comportamento dos consumidores de carnes, não somente no que se refere a escolha do produto, mas também, ao processo de compra. Neste sentido, fatores como proximidade, disponibilidade do produto, e preço são relacionados como fatores que definem compras. Na tentativa de ampliar o entendimento sobre o que os consumidores consideram importante, este trabalho objetiva analisar os principais fatores associados ao consumo das carnes bovina, suína e de frango no Distrito Federal, Brasil. Métodos: a pesquisa foi realizada em três redes distintas de hipermercados. Realizou-se uma avaliação socioeconômica dos entrevistados, seguida da aplicação de um Survey, através de sentenças afirmativas estruturadas, categorizadas em dimensões sociocultural, econômica, saúde/alimento e ambiente. As sentenças foram avaliadas através da Escala Likert de sete pontos. Os dados socioeconômicos dos entrevistados foram analisados por testes de Qui-quadrado e as respostas obtidas por meio da Escala Likert foram transformados em Mean Item Score (MIS). Resultados e Conclusões: os resultados indicaram que o controle de qualidade de exposição das carnes nos supermercados e a praticidade de encontrar o mesmo tipo de carne em vários locais são os principais influenciadores de tomada de decisão de compra pelos consumidores.

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