Characteristics of the market affect the amount of external information search.

Question

Quizplus · Accepted Answer

The characteristics of the market can affect the amount of external information search. For instance, if the market is highly complex and uncertain or if the product is expensive and infrequently purchased, consumers may engage in more external information searches to reduce perceived risks and increase confidence in their purchase decisions. Conversely, in a market with low complexity and high familiarity, consumers may require less external information and rely more on internal factors such as past experience and brand loyalty.

Characteristics of the Market Affect the Amount of External Information