The Impact of Internet Search on Price/Quality Correlations

Ellen Garbarino, University of Sydney, Australia
Nelly Oromulu, Transystems, USA
The price-quality correlation is typically low, suggesting market inefficiency. Information is a necessary condition for market efficiency and the Internet has radically increased information. This should lead to improved p-q correlations, at least for searched goods. Using secondary and survey data, we demonstrate this improvement, but only for durable goods.
[ to cite ]:
Ellen Garbarino and Nelly Oromulu (2012) ,"The Impact of Internet Search on Price/Quality Correlations", in NA - Advances in Consumer Research Volume 40, eds. Zeynep G├╝rhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 422-426.