Search And Experience Goods: Evidence From The 1960‟s And 70‟s

Arthur S. Leahy

9 citations0/0 files storedJournal of Applied Business Research (JABR)

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Consumer Market Behavior and Pricing Marketing and Advertising Strategies American History and Culture

Abstract

This paper examines two aspects of search and experience goods: 1) the differences between the levels of retail and national-brand advertising that would be expected for search goods versus experience goods; and 2) differences in advertising intensity between these two types of goods. The ratio of retail to national-brand advertising was found to be greater for search goods than for experience goods. In addition, the ratio of national-brand advertising in newspapers to sales was found to be greater for experience goods than for search goods. The results overall provide considerable support for Nelson's (1970, 1974) work.

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1970The Market for "Lemons": Quality Uncertainty and the Market Mechanism 1973Job Market Signaling 1970Information and Consumer Behavior 1961The Economics of Information 1973Free Competition and the Optimal Amount of Fraud 1974Advertising as Information 1976The Economics of Information 2002Signaling in Retrospect and the Informational Structure of Markets

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