Switching behavior in automobile markets: A consideration-sets model

Abstract

Consideration-set formation and the direct and indirect consequences of consideration-set size on switching behavior in automobile markets provide the focus for this model development and testing effort. Empirical support is provided for a model revealing that consideration sets, formed as a consequence of prior experience, product knowledge, and satisfaction, play a substantial role in a consumer's decision to switch or repurchase the same brand acquired on the previous purchase occasion. Consideration sets are shown to affect the switching decision both directly and indirectly (by motivating retailer search activities).