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A Model of Perceived Risk and Intended Risk-Handling Activity

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  • Dowling, Grahame R
  • Staelin, Richard
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    Abstract

    On the basis of previous reviews of the perceived-risk concept, a model of risk perception and its effects on consumers' risk-handling behavior is formulated. Hypotheses derived from this model are empirically tested and indicate that, for the setting studied (women purchasing a dress), the intended use of risk-handling activity increases with higher levels of perceived risk. This relationship is more pronounced after the level of risk exceeds the individual's acceptable level of risk. Also of importance in determining the use of a risk-handling activity are the perceived benefit of the type of risk-handling activity and the consumer's inability to absorb a monetary loss. Copyright 1994 by the University of Chicago.

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Consumer Research.

    Volume (Year): 21 (1994)
    Issue (Month): 1 (June)
    Pages: 119-34

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    Handle: RePEc:ucp:jconrs:v:21:y:1994:i:1:p:119-34

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    Web page: http://www.journals.uchicago.edu/JCR/

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    Cited by:
    1. Fearne, Andrew & Hornibrook, Susan A. & Dedman, Sandra, 2001. "The Management Of Perceived Risk In The Food Supply Chain: A Comparative Study Of Retailer-Led Beef Quality Assurance Schemes In Germany And Italy," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 4(01).
    2. Lee, Julie Anne & Kacen, Jacqueline J., 2008. "Cultural influences on consumer satisfaction with impulse and planned purchase decisions," Journal of Business Research, Elsevier, vol. 61(3), pages 265-272, March.
    3. O'Cass, Aron & Pecotich, Anthony, 2005. "The dynamics of voter behavior and influence processes in electoral markets: a consumer behavior perspective," Journal of Business Research, Elsevier, vol. 58(4), pages 406-413, April.
    4. Shih-Chieh Chuang & Danny Tengti Kao & Yin-Hui Cheng & Chu-An Chou, 2012. "The effect of incomplete information on the compromise effect," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 7(2), pages 196-204, March.
    5. Mitchell, Vincent-Wayne & Davies, Fiona & Moutinho, Luiz & Vassos, Vassiliades, 1999. "Using Neural Networks to Understand Service Risk in the Holiday Product," Journal of Business Research, Elsevier, vol. 46(2), pages 167-180, October.
    6. Kang, Min Jung & Park, Heejun, 2011. "Impact of experience on government policy toward acceptance of hydrogen fuel cell vehicles in Korea," Energy Policy, Elsevier, vol. 39(6), pages 3465-3475, June.
    7. Burson, Katherine A. & Faro, David & Rottenstreich, Yuval, 2010. "ABCs of principal-agent interactions: Accurate predictions, biased processes, and contrasts between working and delegating," Organizational Behavior and Human Decision Processes, Elsevier, vol. 113(1), pages 1-12, September.
    8. Keating, Byron W. & Kriz, Anton & Quazi, Ali, 2008. "Financial risk and its impact on new purchasing behavior in the online retail setting," MPRA Paper 40510, University Library of Munich, Germany.
    9. Kleijnen, Mirella & Ruyter, Ko de & Wetzels, Martin, 2007. "An assessment of value creation in mobile service delivery and the moderating role of time consciousness," Open Access publications from Maastricht University urn:nbn:nl:ui:27-22996, Maastricht University.
    10. Chaudhuri, Arjun, 1997. "Consumption Emotion and Perceived Risk: A Macro-Analytic Approach," Journal of Business Research, Elsevier, vol. 39(2), pages 81-92, June.
    11. Usman YOUSAF & Mohsin ALTAF & Noman SARWAR & Syed Ali Hassan SHAH, 2012. "Hesitancy Towards Online Shopping, A Study Of Pakistani Consumers," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 273-284, November.
    12. Wiedmann, Klaus-Peter & Hennigs, Nadine & Pankalla, Lars & Kassubek, Martin & Seegebarth, Barbara, 2011. "Adoption barriers and resistance to sustainable solutions in the automotive sector," Journal of Business Research, Elsevier, vol. 64(11), pages 1201-1206.
    13. Kleijnen, Mirella & Lee, Nick & Wetzels, Martin, 2009. "An exploration of consumer resistance to innovation and its antecedents," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 344-357, June.
    14. Spiekermann, Sarah & Strobel, Martin & Temme, Dirk, 2002. "Drivers and impediments of consumer online information search: Self-controlled versus agent-based search in a high involvement context," SFB 373 Discussion Papers 2002,37, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    15. Bhatnagar, Amit & Ghose, Sanjoy, 2004. "Segmenting consumers based on the benefits and risks of Internet shopping," Journal of Business Research, Elsevier, vol. 57(12), pages 1352-1360, December.
    16. Dant, Rajiv P. & Lumpkin, James R. & Rawwas, Mohammed Y. A., 1998. "Sources of Generalized versus Issue-Specific Dis/Satisfaction in Service Channels of Distribution: A Review and Comparative Investigation," Journal of Business Research, Elsevier, vol. 42(1), pages 7-23, May.
    17. Dutta, Sujay & Pullig, Chris, 2011. "Effectiveness of corporate responses to brand crises: The role of crisis type and response strategies," Journal of Business Research, Elsevier, vol. 64(12), pages 1281-1287.
    18. Mateja Kos Koklic & Irena Vida, 2009. "A Strategic Household Purchase: Consumer House Buying Behavior," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(1), pages 75-96.
    19. Mária Csutora & Ágnes Zsóka, 2011. "Maximizing the Efficiency of Greenhouse Gas Related Consumer Policy," Journal of Consumer Policy, Springer, vol. 34(1), pages 67-90, March.
    20. Yao, Emery & Fang, Ruolian & Dineen, Brian R. & Yao, Xin, 2009. "Effects of customer feedback level and (in)consistency on new product acceptance in the click-and-mortar context," Journal of Business Research, Elsevier, vol. 62(12), pages 1281-1288, December.
    21. Haejeong Kim & Jinhee Kim, 2010. "Information Search for Retirement Plans Among Financially Distressed Consumers," Journal of Family and Economic Issues, Springer, vol. 31(1), pages 51-62, March.
    22. Cho, Jinsook & Lee, Jinkook, 2006. "An integrated model of risk and risk-reducing strategies," Journal of Business Research, Elsevier, vol. 59(1), pages 112-120, January.

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