Internet Car Retailing | Zendy

Morton Fiona Scott | Zendy; Zettelmeyer Florian | Zendy; SilvaRisso Jorge | Zendy

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Internet Car Retailing

Author(s) -

Morton Fiona Scott,

Zettelmeyer Florian,

SilvaRisso Jorge

Publication year - 2001

Publication title -

the journal of industrial economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.93

H-Index - 77

eISSN - 1467-6451

pISSN - 0022-1821

DOI - 10.1111/1467-6451.00160

Subject(s) - business , purchasing , service (business) , advertising , the internet , marketing , computer science , world wide web

We investigate the effect of Internet car referral services on dealer pricing of automobiles in California. Customers of an online service pay on average 2% less for their car ($450 for the average car). 25% of the savings come from purchasing at low‐price dealerships affiliated with the online service. The remaining 75% stem from information provision by the online service, bargaining by the service on behalf of consumers, and cost efficiencies. A consumer receiving the mean online price does better than 65% of offline consumers, conditional on the car being purchased.

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