A conceptual scheme for integrating perceived risk into composition models for multiattribute decisions is developed. A comparison of the predictions obtained from the proposed “risk-adjusted” brand/attribute evaluations with those from an expected value measure suggests that perceived risk is significant in the formation of preferences.
Get full access to this article
View all access options for this article.
References
1.
AlpertMark I.“Identification of Determinant Attributes: A Comparison of Methods,”Journal of Marketing Research, 8 (May 1971), 184–91.
2.
BauerRaymond A.“Consumer Behavior as Risk-Taking,”Proceedings, Fall Conference of the American Marketing Association, 1961, 389–98.
3.
BernD. J., WallachM. A., and KoganN.“Group Decision-Making Under Risk of Adversive Consequences,”Journal of Personality and Social Psychology, 1 (May 1965), 453–60.
4.
BettmanJames R.“Perceived Risk and Its Components: Model and Empirical Test,”Journal of Marketing Research, 10 (May 1973), 184–90.
5.
BettmanJames R., CaponNoel, and LutzRichard J.“Multiattribute Measurement Models and Multiattribute Attitude Theory: A Test of Construct Validity,”The Journal of Consumer Research, 1 (March 1975), 31–8.
6.
CunninghamScott M.“The Major Dimensions of Perceived Risk,” in CoxDonald, ed., Risk Taking and Information Handling in Consumer Behavior.Boston: Division of Research, Harvard Business School, 1967, 82–108.
7.
DayGeorge S.“Evaluating Models of Attitude Structure,”Journal of Marketing Research, 9 (August 1972), 279–86.
8.
EdwardsWard. “The Theory of Decision Making,”Psychological Bulletin, 51 (1954), 380–417.
9.
EinhornHillel J.“Use of Nonlinear, Noncompensatory Models as a Function of Task and Amount of Information,”Organizational Behavior and Human Performance, 6 (January 1971), 1–27.
10.
HirshRobert D., DornoffRonald S., and KernanJerome B.“Perceived Risk and Store Selection,”Journal of Marketing Research, 9 (November 1972), 434–9.
11.
KoganW., and WallachM. A.Risk-Taking: A Study in Cognition and Personality.New York: Holt, Rinehart and Winston, Inc., 1964.
12.
MyersJames H., and AlpertMark I.“Semantic Confusion in Attitude Research: Salience vs. Importance vs. Determinance,” in PerreaultWilliam D.Jr., ed., Advances in Consumer Research, Vol. IV. Association for Consumer Research, 1976, 106–10.
13.
MyersJames H., and Gregory WarnerW.“Semantic Properties of Selected Evaluation Adjectives,”Journal of Marketing Research, 5 (November 1968), 409–11.
14.
NisbettR. E., and GordonA.“Self-Esteem and Susceptibility to Social Influence,”Journal of Personality and Social Psychology, 5 (March 1967), 268–76.
15.
ParkC. Whan. “The Effect of Individual and Situation-Related Factors on Consumer Selection of Judgmental Models,”Journal of Marketing Research, 13 (May 1976), 144–51.
16.
PeterJ. Paul, and RyanMichael J.“An Investigation of Perceived Risk at the Brand Level,”Journal of Marketing Research, 13 (May 1976), 184–8.
17.
PrasBernard. “Predictive Qualities of Linear and Nonlinear Evaluation Process Models,” unpublished doctoral dissertation, Indiana University, 1973.
18.
PrasBernard, and SummersJohn O.“A Comparison of Linear and Nonlinear Evaluation Process Models,”Journal of Marketing Research, 12 (August 1975), 276–81.
19.
RossIvan. “Perceived Risk and Consumer Behavior: A Critical Review,”Advances in Consumer Research, Vol. II. Urbana, Illinois: Association for Consumer Research, 1974, 1–19.
20.
RussFrederick A.“Evaluative Process Models and the Prediction of Preference,”Proceedings, Second Annual Conference, Association for Consumer Research, 1971, 256–61.
21.
SchiffmanLeon G.“Perceived Risk in New Product Trial by Elderly Consumers,”Journal of Marketing Research, 9 (February 1972), 106–8.
22.
SlovicPaul. “Convergent Validation of Risk Taking Measures,”Journal of A bnormal and Social Psychology, 65 (1962), 68–71.
23.
SpenceHomer E., EngelJames F., and BlackwellRoger D.“Perceived Risk in Mail Order and Retail Store Buying,”Journal of Marketing Research, 7 (August 1970), 364–9.
24.
TaylorJames W.“The Role of Risk in Consumer Behavior,”Journal of Marketing, 38 (April 1974), 54–60.
25.
Von NeumanJ., and MorgensternO.Theory of Games and Economic Behavior.Princeton, New Jersey: Princeton University Press, 1947.
26.
WoodruffRobert B.“Measurement of Consumers’ Prior Brand Information,”Journal of Marketing Research, 9 (August 1972), 258–63.
27.
WoodsideArch G.“Informal Group Influence on Risk Taking,”Journal of Marketing Research, 9 (May 1972), 223–5.
28.
WrightPeter L.“Consumer Choice Strategies: Simplifying vs. Optimizing,”Journal of Marketing Research, 12 (February 1975), 60–67.
29.
WrightPeter L.“Use of Consumer Judgment Models in Promotion Planning,”Journal of Marketing, 37 (October 1973), 27–33.
