The Impact of Online Information on the Purchase of Certified Used Cars

Vandana Ramachandran, University of Maryland, College Park
Siva Viswanathan, University of Maryland, College Park
Sanjay Gosain, Capital Group, Inc.
Secondary markets have adopted a number of quality signaling mechanisms such as certification to reduce information asymmetries between buyers and sellers. With the growth of the Internet, consumers seeking to purchase used goods additionally have access to a plethora of information on various aspects of their purchase process. What then is the impact of such information on the value of conventional quality-signaling mechanisms? We draw upon a unique and extensive dataset of consumers who obtained vehicle related information from online sources to examine its impact on the choice of certification, as well as the price paid.
[ to cite ]:
Vandana Ramachandran, Siva Viswanathan, and Sanjay Gosain (2008) ,"The Impact of Online Information on the Purchase of Certified Used Cars", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 743-743.