Returns to investments in information: can investments reduce bad purchase experiences of consumers?

A maximum likelihood probit analysis was used to examine the impact of stock of information, specific information sources, research, value of time, and demographic characteristics on the probability of having a bad purchase experience over the past 12 months. Results indicated that age and degree of social contacts, all representing stock of information, were significantly related to the probability of having a bad purchase experience. Using sales persons' advice as a source of information prior to making prior purchases was also a significant predictor.