In summary, information search theory posits that
consumers will search when the expected benefits of
search equal or exceed the expected costs. The benefits
to shopping for a credit card are different for
convenience and revolving credit card users. Revolvers
search for a lower APR which translates to lower interest
costs, while convenience users search for other features
such as annual fee, rebates, and other enhancements. In
this study, we will empirically investigate whether
information search pays off for revolvers by examining
the relationship between APR and the extent of
information search.
Meth