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. Pre-store search activities were found to be driven by time, monetary, and mobility constraints. In-store search activities were significantly explained by only household size. A comparison of objective and subjective measures of search costs rendered comparable results.
Consumers tend to use warranty information when making judgments about the reliability of brands.
This study examines the nature of the relationship between warranty terms and reliability for a sample of household appliances and electronic products. Overall, results show that warranty terms are poor predictors of brand reliability for the sample under study. However, results indicate that the relationship between warranty terms and brand reliability tends to improve with product age, market penetration, and the amount of variation in the reliability of brands. Dissatisfied consumers are encouraged to complain directly to company service representatives. However, little is known about the verbal communication that actually occurs during these interactions.