On the Measurement of Perceived Consumer Risk

Decision Sciences, Volume 22, Issue 4, pages 927–939

13 Pages Posted: 1 Jun 2016

See all articles by William J. Havlena

William J. Havlena

Southern Methodist University (SMU)

Wayne S. DeSarbo

Pennsylvania State University

Date Written: September 1991

Abstract

The role of perceived risk in consumer behavior has been studied extensively by academic researchers. This paper introduces a methodology for the measurement of the effects of product features, marketing mix components, and individual differences on perceived consumer risk based on theoretical foundations in the literature. A conjoint-type model based on paired comparison judgments is estimated to provide attribute weights. A modification of a stochastic multidimensional scaling-based vector model is then used to measure and summarize individual consumer differences with respect to the impact of brand attributes and marketing mix components on latent levels of perceived consumer risk. An illustration is provided using students’ risk perceptions of sports cars.

Keywords: Consumer Behavior, Marketing Research, Multidimensional Scaling, Statistical Methodology

Suggested Citation

Havlena, William J. and DeSarbo, Wayne S., On the Measurement of Perceived Consumer Risk (September 1991). Decision Sciences, Volume 22, Issue 4, pages 927–939, Available at SSRN: https://ssrn.com/abstract=2787357

William J. Havlena

Southern Methodist University (SMU) ( email )

6212 Bishop Blvd.
Dallas, TX 75275
United States

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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