Search behaviour with reference point preferences:

People are heterogeneous with respect to their behaviour in sequential decision situations. This paper develops models for search behaviour under the assumption of expected-utility maximisation and a new search model that assumes sequential updating of utility reference points during the search process. I find experimental evidence that supports the new reference point model: Individual loss aversion is systematically related to the observed search behaviour in a way that is consistent with the predictions of the reference point model. Risk attitude is not related to search behaviour. The finding that many people set reference points in sequential decision tasks is of interest in, e.g. consumer economics, labour economics, finance, and decision theory.

Knowledge base, information search and intention to adopt innovation

Innovation is a process that involves searching for new information. This paper builds upon theoretical insights on individual and organizational learning and proposes a knowledge based model of how actors search for information when confronted with innovation. The model takes into account different search channels, both local and non local, and relates their use to the knowledge base of actors. The paper also provides an empirical validation of our model based on a study on the search channels used by a sample of Dutch consumers when buying new consumer electronic products.knowledge base, learning, information search, innovation, consumer behaviour

Search behaviour with reference point preferences : theory and experimental evidence

People are heterogeneous with respect to their behaviour in sequential decision situations. This paper develops models for search behaviour under the assumption of expected-utility maximisation and a new search model that assumes sequential updating of utility reference points during the search process. I find experimental evidence that supports the new reference point model: Individual loss aversion is systematically related to the observed search behaviour in a way that is consistent with the predictions of the reference point model. Risk attitude is not related to search behaviour. The finding that many people set reference points in sequential decision tasks is of interest in, e.g. consumer economics, labour economics, finance, and decision theory

A FORK IN THE ROAD: A CONCEPTUAL MODEL OF ONLINE CONSUMER ITERATIVE SEARCH

Lower searching cost and access to large amounts of information on the Internet are making a consumer’s search more iterative. Through a synthesis of literature from consumer behaviour and information science, we propose a process model of online consumer search in which a consumer may move forward in the process towards a final product selection, but also is likely to backtrack to an earlier stage to revise their search. Our process model steps through a consumer’s need, search criteria, alternatives, evaluation, and final selection, including an option of iteration within the evaluation stage. Future research will fully investigate the entire process model, but in this paper we focus on the evaluation stage and the resulting search iteration. In the online context, as a consumer evaluates alternative products, the consumer is also engaged in a learning process where the consumer may identify the need to update the functional product attributes and/or the hedonic product attributes of the search criteria or alternatives, which leads to a new iteration of the search process. The product consumption goals of a consumer (i.e., prevention, promotion) are theorized to also influence the search process leading to iteration. Hypotheses and future research opportunities are outlined

Conditioning prices on search behaviour

We consider a market in which �firms can partially observe each consumer's search behavior in the market. In our main model, a �firm knows whether a consumer is visiting it for the �first time or whether she is returning after a previous visit. Firms have an incentive to offer a lower price on a �first visit than a return visit, so that new consumers are offered a "buy-now" discount. The ability to offer such discounts acts to raise all prices in the market. If �firms cannot commit to their buy-later price, in many cases �firms make "exploding" offers, and consumers never return to a previously sampled �rm. Likewise, if �firms must charge the same price to all consumers, regardless of search history, we show that they sometimes have the incentive to make exploding offers. We also consider other ways in which �firms could use information about search behaviour to determine their prices

Conditioning prices on search behaviour

We consider a market in which firms can partially observe each consumer's search behavior in the market. In our main model, a firm knows whether a consumer is visiting it for the first time or whether she is returning after a previous visit. Firms have an incentive to offer a lower price on a first visit than a return visit, so that new consumers are offered a "buy-now" discount. The ability to offer such discounts acts to raise all prices in the market. If firms cannot commit to their buy-later price, in many cases firms make "exploding" offers, and consumers never return to a previously sampled firm. Likewise, if firms must charge the same price to all consumers, regardless of search history, we show that they sometimes have the incentive to make exploding offers. We also consider other ways in which firms could use information about search behaviour to determine their prices.Consumer search; oligopoly; price discrimination; high-pressure selling; exploding offers; costly recall

The combined effect of regulators’ and retailers’ actions to stimulate consumer participation in retail energy markets

Active consumer participation in retail markets is crucial for an affordable and sustainable energy transition. While energy regulators encourage active consumer participation through policies which decrease consumers’ switching costs, energy retailers seek to advance customer retention to boost profits. This study investigates how these seemingly opposing goals influence consumer participation in energy retail markets. Using data on the Dutch energy markets, we combine micro-economic and marketing insights through a retailer-aggregated panel vector auto-regression (VAR) model and a market-level VAR to analyse the dynamic interactions. The results indicate that the regulator affects consumer participation both directly and indirectly through energy retailers’ actions. We conclude that energy retailers’ acquisition and retention actions do not counteract the regulator’s efforts to increase active consumer participation. While retention actions lead to decreased switching behaviour, they concurrently decrease perceived switch costs while increasing search behaviour and the consideration to switch. Therefore, retention actions may still improve consumer welfare. Our research reveals mediating relations that require comprehensive examination of the overall impacts of regulatory policies and energy retailer’s actions

The combined effect of regulators’ and retailers’ actions to stimulate consumer participation in retail energy markets

Active consumer participation in retail markets is crucial for an affordable and sustainable energy transition. While energy regulators encourage active consumer participation through policies which decrease consumers’ switching costs, energy retailers seek to advance customer retention to boost profits. This study investigates how these seemingly opposing goals influence consumer participation in energy retail markets. Using data on the Dutch energy markets, we combine micro-economic and marketing insights through a retailer-aggregated panel vector auto-regression (VAR) model and a market-level VAR to analyse the dynamic interactions. The results indicate that the regulator affects consumer participation both directly and indirectly through energy retailers’ actions. We conclude that energy retailers’ acquisition and retention actions do not counteract the regulator’s efforts to increase active consumer participation. While retention actions lead to decreased switching behaviour, they concurrently decrease perceived switch costs while increasing search behaviour and the consideration to switch. Therefore, retention actions may still improve consumer welfare. Our research reveals mediating relations that require comprehensive examination of the overall impacts of regulatory policies and energy retailer’s actions

A conceptual integrated theoretical model for online consumer behaviour

The study addresses the limited and fragmented approaches of consumer behaviour studies in the existing literature and a lack of comprehensive integrated theoretical models of online consumer behaviour. The aim of the study is to propose a conceptual integrated theoretical model for online consumer behaviour which suggests a deviation from the existing purchasing approaches to consumer behaviour - hence a move towards an understanding of consumer behaviour in terms of two new approaches, namely the web-based communication exposure and internal psychological behavioural processes approaches, is proposed. The study addresses two main research problems, namely that inadequate knowledge and information exist on online consumers’ behavioural processes, especially their internal psychological behavioural processes during their exposure to web-based communication messages and their progression through the complete web-based communication experience; and that there is no conceptual integrated theoretical model for online consumer behaviour in the literature. This study, firstly, allows for systematic theoretical exploration, description, interpretation and integration of existing literature and theory on offline and online consumer behaviour including the following: theoretical perspectives and approaches; determinants; decision making; consumer information processing and response; and theoretical foundations. This systematic theoretical exploration and description of consumer behaviour literature and theory commences with the contextualisation and proposal of a new definition, perspective and theoretical approaches to online consumer behaviour; the discussion and analysis of the theory of the determinants of consumer behaviour; the discussion and analysis of decision-making theory; the proposition of a new online information decision-making perspective and model; the discussion and analysis of consumer information-processing and response theory and models; the discussion and analysis of the theoretical foundations of consumer behaviour; and the identification of theoretical criteria for online consumer behaviour. Declaration – acknowledgements - abstract Secondly, the study develops a conceptual integrated theoretical model for online consumer behaviour, thereby theoretically grounding online consumer behavioural processes in the context of internal psychological behavioural processes and exposure to web-based communication messages. It is hence posited that the study provides a more precise understanding of online consumers’ complicated internal cognitive and psychological behavioural processes in their interactive search for and experience of online web-based communication and information, which can be seen as a major contribution to the field of study.Communication ScienceD. Litt. et Phil. (Communication