Consumer Behavior in the Online Marketplace: How Time and Access to Information Drive Consumer Decisions

by Ruth, James L

The online marketplace is growing every year. As it continues to grow it is important to understand the interactions between online consumers and online merchants. This study examines the relationship between online merchants and online consumers focusing on how information is passed between the two. With consumers able to search and view dozens of stores in the time it used to take for many of them to drive to one, why are consumers not able to find the best price for the good they hope to buy? By examining past literature on information theory and consumer behavior, combined with considering a 3 x 3 sample of online consumers actually finding items in an online environment, this study will serve as a base for further research on what drives consumer interaction with electronic markets.