Two field experiments were conducted to explore the effects of varying levels of product warranty, manufacturer reputation, and price on consumers’ risk perceptions and affective responses to new product concepts. Data were collected from a consumer panel in a new product concept test format for a tire product and for a computerized exercise device. Results from structural equation analyses reveal the important role of warranties and other extrinsic cues in reducing consumers’ risk perceptions and enhancing their affective responses to innovative product concepts.
Get full access to this article
View all access options for this article.
References
1.
AakerD. A., and BagozziR. P. (1979), “Unobservable Variables in Structural Equation Models with an Application in Industrial Selling,”Journal of Marketing Research, 16(May), 147–58.
2.
AndersonR. D., and EngledowJ. L., and BeckerH. (1979), “Evaluating the Relationships Among Attitude Toward Business, Product Satisfaction, Experience, and Search Effort,”Journal of Marketing Research, 16(August), 394–400.
3.
ArmstrongG. M., and KendallC. L., and RussF. A. (1975), “Applications of Consumer Information Processing Research to Public Policy Issues,”Communication, 2, 232–45.
4.
BagozziR. B. (1977), “Structural Equation Models in Experimental Research,”Journal of Marketing Research, 14, 209–26.
5.
BagozziR. B. (1980), Casual Models in Marketing.New York: John Wiley & Sons, Inc.
6.
BagozziR. B. (1980), “Performance and Satisfaction in an Industrial Sales Force: An Examination of Their Antecedents and Simultaneity,”Journal of Marketing, 44, 65–77.
7.
BauerR. A. (1960), “Consumer Behavior as a Risk Taking,” in Dynamic Marketing For a Changing World, HancockR. S., ed. Chicago: American Marketing Association.
8.
BentlerP. M., and BonettD. G. (1980), “Significance Tests and Goodness of Fit in the Analysis of Covariance Structures,”Psychological Bulletin, 88, 588–606.
9.
BettmanJ. R. (1973), “Perceived Risk and Its Components: A Model and Empirical Test,”Journal of Marketing Research, 10, 184–190.
10.
BettmanJ. R. (1975), “Information Integration in Consumer Risk Perceptions: A Comparison of Two Models of Component Conceptualization,”Journal of Applied Psychology, 60, 381–5.
11.
CampbellA., and ConverseP. E., and MillerW. E., and StokesD. E. (1960), The American Voter.New York: John Wiley & Sons, Inc.
12.
CostnerH. L., and SchoenbergR. (1973), “Diagnosing Indicator Ills in Multiple Indicator Models,” in Structural Equation Models in the Social Sciences,GoldbergerA. S., and DuncanO. D., eds. New York: Seminar Press.
13.
CoxD. F. (1962), “The Measurement of Information Value: A Study in Consumer Decision-Making,” in Emerging Concepts in Marketing, DeckerW. S., ed. Chicago: American Marketing Association.
14.
DardenW. R., and RaoC. P. (1977), “Satisfaction With Repairs Under Warranty and Perceived Importance of Warranties for Appliances,” in Consumer Satisfaction/Dissatisfaction and Complaining Behavior, DayR. L., ed. Bloomington: University of Indiana.
15.
DardenW. R., and RaoC. P. (1979), “A Linear Covariate Model of Warranty Attitudes and Behavior,”Journal of Marketing Research, 16(November), 466–77.
16.
FishbeinM., and AjzenI. (1975), Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research.Reading, MA: Addison-Wesley.
17.
FornellC., and LarckerD. F. (1981), “Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,”Journal of Marketing Research, 18(February), 39–50.
18.
JacobyJ., and KaplanL. B., and SzybilloG. J. (1974), “Components of Perceived Risk in Product Purchase,”Journal of Applied Psychology, 59, 287–91.
19.
JacobyJ., and OlsonJ. D., and HaddockR. A. (1971), “Price, Brand Name, and Product Composition Characteristics as Determinants of Perceived Quality,”Journal of Applied Psychology, 55, 570–9.
20.
JöreskogK. G. (1978), “Structural Analysis of Covariance and Correlation Matrices,”Psychometrika, 43, 443–77.
21.
JöreskogK. G., and SörbomD. (1978), Analysis of Linear Structural Relationships by the Method of Maximum Likelihood: LISREL IV.Chicago: National Educational Resources.
22.
KaplanL. B., and SzybilloG. J., and JacobyJ. (1974), “Components of Perceived Risk in Product Purchase: A Cross-Validation,”Journal of Applied Psychology, 59, 287–91.
23.
LeavittT. (1967), “Communications and Industrial Marketing,”Journal of Marketing, 31, 15–21.
24.
McClureP. J., and RyansJ. K. (1968), “The Difference Between Retailers’ and Consumers’ Perceptions,”Journal of Marketing Research, 5(February), 55–60.
25.
MonroeK. B. (1973), “Buyers’ Subjective Perceptions of Price,”Journal of Marketing Research, 10(February), 70–80.
26.
MontgomeryD. B. (1975), “New Product Distribution: An Analysis of Supermarket Buyer Decisions,”Journal of Marketing Research, 12(August), 255–64.
27.
OlsonJ. C. (1972), “Cue Utilization in the Quality Perception Process,” in Proceedings of 3rd Annual Conference, VenkatesenM., ed. Chicago: Association for Consumer Research,167–79.
28.
OlsonJ. C. (1977), “Price as an Informational Cue: Effects on Product Evaluations,” in Consumers and Industrial Buying Behavior, WoodsideA. G., and ShethJ. N., and BennettP. D., eds. New York: American Elsevier,267–86.
29.
PerryM., and PerryA. (1976), “Service Contract Compared to Warranty as a Means to Reduce Consumer's Risk,”Journal of Retailing, 52, 33–40.
30.
PeterJ. P., and RyanM. J. (1976), “An Investigation of Perceived Risk at the Brand Level,”Journal of Marketing Research, 13(May), 184–8.
31.
PeterJ. P., and TarpeyL. X. (1975), “A Comparative Analysis of Three Consumer Decision Strategies,”Journal of Consumer Research, 2, 29–37.
32.
PopielarzD. T. (1967), “An Exploration of Perceived Risk and Willingness to Try New Products,”Journal of Marketing Research, 4(November), 368–72.
33.
RossI. (1975), “Perceived Risk and Consumer Behavior: A Critical Review,” in Advances in Consumer Research, Vol. 2, SchlingerM. J., ed. Cincinnati: Association for Consumer Research,1–19.
34.
SimonM. F. (1970), “Influence of Brand Names on Attitudes,”Journal of Advertising Research, 10, 28–30.
35.
SternthalB., and DholakiaR., and LeavittC. (1978), “The Persuasive Effect of Source Credibility: Tests of Cognitive Response,”Journal of Consumer Research, 4, 252–60.
36.
TauberE. M. (1975), “Why Concept Tests and Product Tests Fail to Predict New Product Results,”Journal of Marketing, 39, 69–71.
37.
TaylorJ. R. (1974), “The Role of Risk in Consumer Behavior,”Journal of Marketing, 38, 54–60.
38.
TuckerR. L., and LewisC. (1973), “A Reliability Coefficient for Maximum-Likelihood Factor Analysis,”Psychometrika, 38, 1–10.
39.
WertsC. E., and LinnR. L., and JöreskogK. G. (1974), “Intraclass Reliability Estimates: Testing Structural Assumptions,”Educational and Psychological Measurement, 34, 25–33.
40.
YuspehS. (1975), “Diagnosis—The Handmaiden of Prediction,”Journal of Marketing, 39, 87–9.
41.
ZaltmanG., and WallendorfM. (1979), Consumer Behavior: Basic Findings and Management Implications.New York: John Wiley & Sons, Inc.
