DOES INFORMATION UNDERMINE BRAND? INFORMATION INTERMEDIARY USE AND PREFERENCE FOR BRANDED WEB RETAILERS -super-*

Joel Waldfogel () and Lu Chen

Journal of Industrial Economics, 2006, vol. 54, issue 4, pages 425-449

Abstract: Investments in brand, and third-party information, provide alternative methods for convincing potential customers that vendors will deliver as promised. This study uses a 13-month panel dataset on 1998-99 Internet shopping behavior and use of information intermediaries by over 30,000 households to examine whether information use undermines brand. Individuals using price comparison sites substantially increase their level of shopping at unbranded retail sites, while they shop less at Amazon. The results have possible implications for both firm strategy and the evolution of market structure. If information weakens the pull of brand, then Internet retailing may grow less concentrated over time. Copyright Blackwell Publishing Ltd. 2006.

Date: 2006

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Journal of Industrial Economics is edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

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