Consumer information search behavior and purchasing decisions: Empirical evidence from Korea

Seung-Pyo Jun and Do-Hyung Park

Technological Forecasting and Social Change, 2016, vol. 107, issue C, 97-111

Abstract: Recently, Internet activity by consumers adopting innovation or purchasing products has increased markedly. To understand this phenomenon, our study focuses on the correlation between purchase behavior and search activity. Utilizing the product classifications established in previous studies, we classify physical products into durable, nondurable, and industrial goods. We then empirically analyze case studies to determine the correlation between Internet searches and product purchases. Our research results show that the correlation between sales and search traffic is more significant for consumer goods than for industrial goods; furthermore, in the consumer goods category, search traffic is a particularly strong predictor of sales in the case of consumer durable goods. These results may be self-evident, implicit in the definition of each product category. However, the presented findings confirm that even among nondurable goods, search traffic can be a significant predictor of purchases, depending on both price and frequency of purchases. In contrast, for durable goods, search traffic may not be strongly indicative of actual purchases for new products, for which traffic simply reflects rising interest. We also show that PC searches are a stronger predictor of sales than mobile searches. The conclusions drawn from this study provide an important foundation for effectively using search statistics in technology business management to formulate marketing strategies as well as to forecast and analyze the adoption of new technology based on real-time monitoring of the changing involvement with each product.

Keywords: Information search behavior; Purchase behavior; Search traffic; Product classification; Mobile search behavior (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:107:y:2016:i:c:p:97-111

DOI: 10.1016/j.techfore.2016.03.021

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