The Impact of Internet Search on Price/Quality Correlations

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.


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 Gürhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 422-426.


Ellen Garbarino, University of Sydney, Australia
Nelly Oromulu, Transystems, USA


NA - Advances in Consumer Research Volume 40 | 2012

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