The Effect of Price Dispersion and Product Information on Consumer Product Attitude in Informediary

  • Chung, Sung-Hun (The Department of Management Engineering KAIST(Korea Advanced Institute of Science and Technology) Business School) ;
  • Han, In-Goo (The Department of Management Engineering KAIST(Korea Advanced Institute of Science and Technology) Business School)
  • Published : 2007.11.15

Abstract

Infomediary, playing an important role in e-commerce, provides refined a product information and the price dispersion of product. This paper use the elaboration likelihood model to explain how level of involvement with a product moderates the impact of price dispersion and product information quality on product attitude. The study produces three major findings : (1) the quality of product information produced by infomediary has a positive effect on consumers' product attitude, (2) For low-involvement consumer, price dispersion of product positively affect consumers' product attitude. For high-involvement consumer, negatively affect, (3) low-involvement consumer are affected by the price dispersion rather than the quality of product information, but high-involvement consumer are affect by price dispersion mainly when the quality of product is low. These finding have implications for on-line infomediaries in terms of how to manage their users.