The main purposes of this study are (1) to examine the effect of products and services intangibility on buyers` perceived risk and their evaluation on the dimensions of perceived risk: perceived importance and perceived uncertainty, (2) to explore the...
The main purposes of this study are (1) to examine the effect of products and services intangibility on buyers` perceived risk and their evaluation on the dimensions of perceived risk: perceived importance and perceived uncertainty, (2) to explore the effect of store buying and internet buying situations on buyers` perceived risk and their evaluation on the two dimensions of perceived risk, and (3) to suggest the strategic implications for both service marketing and internet marketing managers with respect to managing and diminishing perceived risk across different buying situations. The major findings of this study are (1) the degree of perceived risk in intermet buying situation is significantly higher than that in store buying situation. (2) given in internet buying situation the degree of perceived risk is unexpectedly and negatively correlated to the degree of intangibility, (3) given in highly-involved store buying situation the degree of perceived risk is positively correlated to the degree of intangibility, (4) the degree of perceived uncertainty in internet buying situation is significantly higher than that store buying situation. and (5) given in internet buying situation the degree of perceived uncertainty is negatively correlated to the degree of intangibility. Interestingly, the finding #2 is contrary to the previous studies conducted in store buying situation, and the findings #4 and #5 support the relations found in #2 and #3. The managerial implications of this study is to strategically suggest how to diminish and handle buyers` perceived risk. In this respect service marketing and internet marketing managers should carefully focus on the two dimensions of perceived risk. Perceived risk should be managed by understanding and exploring how buyers perceive uncertainty on what buying criteria across different buying situations. Similarly the dimensions of perceived importance are also to be studied to manage and reduce perceived risk.