Determinants of search for nondurable goads: An empirical assessment of the economics of information theory

This paper examines the usefulness of Stigler's (1961) Economics of Information Theory in the study of consumer search in a market for frequently purchased, nondurable grocers items, The empirical model examines antecedent (pre-store) and point of purchase (in-store) search, It incorporates and contrasts economic incentives for search with noneconomic involvement-based motivations and perceived versus actual costs associated with search. Data used in the analysis were collected in a large midwestern city during 1990. Results indicate that Stigler's cost-benefit model provides a better fit for pre-store rather than in-store search activities. Pre-store search activities were found to be driven by time, monetary, and mobility constraints. Pre-store search activity was not found to be significant in explaining in-store search activities, In-store search activities were significantly explained bg only household size, Shopping involvement was not found to be related to pre- or in-store activities, A comparison of objective and subjective measures of search costs rendered comparable results.