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DOES INFORMATION UNDERMINE BRAND? INFORMATION INTERMEDIARY USE AND PREFERENCE FOR BRANDED WEB RETAILERS *
Author(s) -
WALDFOGEL JOEL,
CHEN LU
Publication year - 2006
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/j.1467-6451.2006.00295.x
Subject(s) - business , intermediary , preference , the internet , advertising , marketing , brand preference , brand awareness , commerce , economics , microeconomics , computer science , world wide web
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.