The (Dis)Advantage of Friendship on Information Search and Satisfaction

Abstract

Across four experiments, and focusing on consumer behaviour in a high uncertainty market (i.e., a used car market), this research shows that prior to a purchase, buyers are less motivated to search for information when they purchase a product from a friend (compared to someone they do not know). We also show that buyers are more willing to search for information after a transaction when sellers are their friends, a reversal in search behaviour due to the greater social risk that buyers bear when dealing with a friend. Finally, this research shows that both the transaction outcome (i.e., positive versus negative) and the buyer–seller relationship determine the degree to which people are satisfied or dissatisfied with a seller. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.