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.