Abstract
A model for dimensionalizing and scaling perceived risk is presented. The scaling procedure provides risk values at the brand and category level on each of several risk dimensions. The model is illustrated with business managers' risk assessments of microcomputer profiles. The relative importance of various intrinsic and extrinsic cues in determining these perceptions was examined as part of the validation procedure for the several risk scales.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Addelman, S. (1962). “Orthogonal Main-Effect Plan for Asymmetrical Factorial Experiments,” Technometrics 4(1), 21–46.
Bearden, W. O., and T. A.Shimp. (1982). “The Use of Extrinsic Cues to Facilitate Product Adoption,” Journal of Marketing Research 19, 229–239.
Bechtel, G. G., and C.Ofir. (1988). “Aggregate Item Response Analysis,” Psychometrika 53, 93–107.
Bettman, J. R. (1973). “Perceived Risk and Its Components: Model and Empirical Test,” Journal of Marketing Research 10, 184–190.
Birnbaum, A. (1968). “Some Latent Trait Models and Their Use in Inferring an Examinee's Ability.” In F. M.Lord and M. R.Novick (eds.), Statistical Theories of Mental Test Scores. Reading, Mass.: Addison-Wesley.
Cohen, J., and P.Cohen. (1975). Applied Multivariate Regression/Correlation Analysis for the Behavioral Sciences, Hillsdale, New Jersey: Lawrence Erlbaum Associates, Publishers.
Dickerson, M. D., and J. W.Gentry. (1983). “Characteristics of Adopters and Non-Adopters of Home Computers,” Journal of Consumer Research 10(2), 225–235.
Engel, J. F., and R. D.Blackwell. (1982). Consumer Behavior, 4th ed., New York: The Dryden Press.
Engel, J. F., R. D.Blackwell, and P. W.Miniard. (1986). Consumer Behavior, 5th ed., New York: The Dryden Press.
Gable, J. S., S. Tylka, and M. A. Maidique. (1984). “Preventing One Bad Apple from Turning the Barrel Sour,” International Management August, 50–54.
Green, P. E. (1974). “On the Design of Choice Experiments Involving Multifactor Alternatives,” Journal of Consumer Research 1, 61–68.
Gunst, R. F. and R. L.Mason. (1980). Regression Analysis and Its Application. New York: Marcel Dekker, Inc.
Kaplan, L. B., G. J.Szybillio, and J.Jacoby. (1974). “Components of Perceived Risk in Product Purchase: A Cross-Validation,” Journal of Applied Psychology 59(3), 287–291.
Monroe, K. B., and S. M.Petroshius. (1981). “Buyers' Perceptions of Price: An Update of the Evidence.” In H. H.Kassarjian and T. S.Robertson, (eds.), Perspectives in Consumer Behavior. Glenview, Ill.: Scott, Foreman, 43–55.
Ofir, C., and A.Khuri. (1986). “Multicollinearity in Marketing Models: Diagnostics and Remedial Measures,” International Journal of Research in Marketing 3, 181–205.
Olson, J. C. (1977). “Price as an Informational Cue: Effects on Product Evaluation.” In A. G.Woodside, J. N.Sheth, and P. D.Bennet, (eds.), Consumer and Industrial Buying Behavior. New York: North Holland, 267–286.
Peter, J. P., and M. J.Ryan. (1976). “An Investigation of Perceived Risk at the Brand Level,” Journal of Marketing Research 13, 184–188.
Peter, J. P., and L. X.TarpeySr. (1975). “A Comparative Analysis of Three Consumer Decision Strategies,” Journal of Consumer Research 2, 29–37.
Ross, I. (1975). “Perceived Risk and Consumer Behavior: A Critical Review.” In M. J. Schlinger, (ed.), Advances in Consumer Research, Vol. 2. Cincinnati Association for Consumer Research, 1–19.
Shimp, T. A., and W. O.Bearden. (1982). “Warranty and Other Extrinsic Cue Effects on Consumers' Risk Perceptions,” Journal of Consumer Research 9, 38–46.
Sternthal, B., and C. S.Craig. (1982). Consumer Behavior. Englewood Cliffs, NJ: Prentice-Hall.
Takeuchi, H. (1981). “U.S. Pioneer Electronics Corporation.” In E. R.Corey, C. H.Lovelock, and S.Ward, (eds.), Problems in Marketing. New York: McGraw Hill, 316–340.
Torgerson, W. S. (1958). Theories and Methods of Scaling. New York: Wiley.
Wittink, D. R. and P.Cattin. (1981). “Alternative Estimation Methods for Conjoint Analysis: A Monte Carlo Study,” Journal of Marketing Research 18, 101–106.
Zikmund, W. G., and J. E.Scott. (1973). “A Multivariate Analysis of Perceived Risk, Self Confidence and Information Sources.” In S.Ward and P.Wright, (eds.), Advances in Consumer Research, Vol. 1. Urbana, Illinois: Association for Consumer Research, 406–416.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Ofir, C., Bechtel, G.G. Scaling and dimensionalizing perceived risk from ratings data: Managers' risk perception of business computers. Market Lett 1, 171–179 (1990). https://doi.org/10.1007/BF00435300
Issue Date:
DOI: https://doi.org/10.1007/BF00435300