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Risk-reduction strategies in competitive convenience retail: How brand confusion can impact choice among existing similar alternatives

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  • Shiu, Jerry Yuwen

Abstract

Consumers tend to deliberate over their options by relying on risk reduction to facilitate the entire purchase journey. The present study was designed to be the first to investigate how brand confusion can impact consumers’ choice among existing similar alternatives with the use of risk-reduction strategies (i.e., decision postponement and inertia) in competitive convenience retail. The findings reflect two opposing strategies that consumers adapt to, that is, respond rationally or irrationally to brand confusion. Consequently, such a response either delays their purchase to search for additional external information or motivates them to depend on their behavioral inertia; whereas cognitive inertia completely relegates the decision-making process to the behavioral type. Taken together, the findings imply that rational decision-making could not function well to choose among existing similar alternatives. Accordingly, the study also provides some recommendations for marketers to reconnect cognitive inertia back to the process of decision making, and thereby encourage the acceptance of the new belief system.

Suggested Citation

  • Shiu, Jerry Yuwen, 2021. "Risk-reduction strategies in competitive convenience retail: How brand confusion can impact choice among existing similar alternatives," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:joreco:v:61:y:2021:i:c:s0969698921001132
    DOI: 10.1016/j.jretconser.2021.102547
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    Cited by:

    1. Jerry Yuwen Shiu & Shi Ting Liao & Shian-Yang Tzeng, 2023. "How does online streaming reform e-commerce? An empirical assessment of immersive experience and social interaction in China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    2. Cervi, Cleber & Brei, Vinicius Andrade, 2022. "Choice deferral: The interaction effects of visual boundaries and consumer knowledge," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    3. Koshksaray, Amir Abedini & Quach, Sara & Trinh, Giang & Keivani, Somayeh Bahoush & Thaichon, Park, 2023. "Brand competitiveness antecedents: The interaction effects of marketing and R&D expenditure," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    4. Chen, Liuyan & Wu, Pengkun & Dou, Yudan & Wu, Yuanyuan, 2023. "Investigating senders’ switching intention to smart lockers: An extension of push-pull-mooring model," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    5. Jerry Yuwen Shiu & Guohang Wei & Hsiu-Hua Chang, 2023. "Impulse control during the online shopping frenzy in China: the role of consumer inertia," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.

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