Perceived Risk As A Factor In Store Choice: An Examination Of Inherent Versus Handled Risk

Abstract

Perceived risk as an influence on consumer behavior has been well documented. Despite the popularity of the topic, only a few studies have examined the risks consumers perceive when selecting a retail patronage mode. The study uses Bettman’s concept of inherent/handled risk to isolate the risk attributable to specific retail patronage modes. The results indicate varying amounts of handled risk are associated with purchasing products from different retail m odes. The study also provides evidence that risk attributable to a specific retail mode tends to differ among product categories.