This paper studies airline customers' online search and purchase behaviors. Two
fundamental aspects of online behavior are examined: (1) the link between search
behavior and buying behavior and (2) the evolution of inter-temporal search and
purchase decisions of strategic buyers.
In the first study, we examine online customers' dynamic conversion behaviors using
clickstream data. A new model based on Markov chains that incorporates discrete
choices and decision-timing is proposed to capture key search effects on consumer decisions
as well as dynamics of browsing behavior both within and across visits. Empirical
results show that within-site search activities lead to strong consumer engagement
and thus increase purchase and revisit propensities. Fit comparison between first and
second order Markov chains allows us to conclude that consumer decisions are primarily
influenced by the current search. Furthermore, we observe that consumers
dynamically adjust their browsing behavior both within and across visits.
The second study investigates the evolution of inter-temporal search and purchase
decisions of strategic buyers. Risk neutral buyers follow simple behavioral rules based
on future and current prices and options available. We show that the trade-off between
waiting and purchasing will become less and less favorable to waiting. Price
elasticity should therefore drop as departure date approaches. With stationary price
distributions, search and purchase efforts increase with proximity to the deadline. We
extend the base model to allow for price evolution and demand uncertainty. We find
that increases in mean price and price dispersion may attenuate increasing propensities
for search and purchase. We demonstrate our models through a logit estimation
on a unique data set from a major online travel agency.
| Identifer | oai:union.ndltd.org:GATECH/oai:smartech.gatech.edu:1853/29605 |
| Date | 06 July 2009 |
| Creators | Lee, Misuk |
| Publisher | Georgia Institute of Technology |
| Source Sets | Georgia Tech Electronic Thesis and Dissertation Archive |
| Detected Language | English |
| Type | Dissertation |
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