The Impact of Online and Offline Information Sources on Automobile Choice Behavior

The Internet has significantly impacted the information search behavior of consumers. Many consumers regularly consult Internet sources for information on product categories, brands, manufacturers, and retailers, particularly when making a purchase decision about major durable goods. Automobiles are one example of such goods. The Internet has become a major source for information on automobile brands, attributes, and dealers. While much research has been done on the impact of the Internet on automobile information search behavior and search costs, there is limited work on the relationship between Internet use and the ultimate automobile choice. This type of relationship may have interesting managerial implications for both manufacturers of automobiles and firms that provide information on automobiles. This paper attempts to address this gap. It examines whether Internet use is associated with different choice patterns for automobiles. Using discrete choice analysis on automobile choice data, we explore whether there will be differences in the salience of specific information types for online versus offline consumers. We find that Internet users rely more on ratings while non-Internet users rely more on recommendations when making automobile choices. Our findings have several useful managerial implications for information provision, both online and offline.

► We investigate the relationship between search channel and automobile choice, focusing on the salience of Consumer Reports’ ratings and recommendations. ► Consumer Reports’ automobile recommendations have more of an impact on choice for non-Internet users than ratings. ► Consumer Reports’ automobile ratings have more of an impact on choice for Internet users than recommendations.