The Influence of Internet Searches on Consumer Purchasing Decisions

Abstract

The purpose of this study is to examine the influence of the internet searches on consumer purchasing decisions for new products and services. To this end, this study considered the TV advertising effects on the consumer decision-making process in terms of awareness and preference, and then it examined the search query volume as the new consumer behavioral pattern. In this way, the study develops an integrated model to analyze various factors of the advertising effects. The proposed model analyze TV advertising sales effects along with changes in consumer behavioral patterns, specifically the consumer decision-making process, caused by exposure to TV advertising. Empirical analysis is conducted by three econometric methods. Two of them are the simultaneous equation model and path analysis. These methods address the endogeneity and causality relationship issues of various advertising measures. The other method is random utility model. This model deal with internet search query data as aggregate level of consumer demand. These models identify the major variables of the advertising effects in the consumer decision-making process. The estimation results proved that internet searches for product information influences purchase decisions, which marks a change in the consumer behavior pattern. Also, TV advertising and the search query volume are closely related. Examining each variables effectiveness has strategic implications to maximize the advertising effects in the consumer decision-making process. This study showed that changes in consumer behavioral patterns should be considered in measuring advertising effectiveness. This approach could be a step toward understanding Internet searches influence on consumers purchase decisions. Finally, this study could be used to formulate companies advertising strategies and government advertising regulations because consumers might base their purchasing decisions on Internet search results rather than TV advertisements.