Perceived Risk: A Cross-Cultural Phenomenon?

Document Type

Article

Publication Date

1-1-1990

Description

The existence of a positive relationship between perceived risk and brand loyalty has been accepted in the United States since the 1960s. Recognizing this, marketers frequently give out free samples or coupons and provide reassurances through warranties to induce trial and subsequent acceptance of their brand by the consumer. However, validity of the concept of perceived risk with respect to international markets has been lacking. This paper responds to the call for cross-national research of behavioral concepts and tests the applicability of perceived risk in a cross-national setting. While the limited scope of the study (four countries and two products) does not permit definitive statements, results indicate that perceived risk can be used to analyze consumer behavior patterns in different cultures. The findings also suggest that the risk reduction strategy of brand loyalty may not be widely employed by consumers outside the U.S.A.

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