Which type of buyer is most difficult to convert? Fortunately, the secret boils down to utilizing well-written copy that appeals to their apprehensive nature.
Recent research has been concentrated on the study of relationships between specific kinds or components of perceived risk or risk consequences and the specific relievers or reducers of these components.
The reviewer offers a critique of research on perceived risk and suggests direction for future research. After fourteen years there is evidence that the infant is fast becoming adult. Indeed, as the list of references suggests, recent years have shown a dramatic increase in publication frequency of empirical research in this area, and current models or theories of consumer behavior broadly incorporate the perceived risk construct.
Engel, Kollat and Blackwell position perceived risk specifically in the "external search and alternative evaluation" stage of decision-making pp. The reviewer has not found the organization of the empirical literature on perceived risk for the purposes of this paper an easy task nor one which is likely to be optimally-satisfying to some hopefully, not most readers.
In the first place, perceived risk has been studied in relation to a very large number of other consumer behavior variables--too large a number to review in detail within the space limitations imposed. And secondly, the manner in which the construct has been operationally and even conceptually defined has varied so much across the studies, that efforts at synthesis are hampered by questions of "are these two studies really talking about the same thing?
After a discussion of the conceptualization of the construct, the reviewer has chosen to organize his summary by discussing the major consumer behavior variables to which perceived risk has been applied.
Some "problematic" areas in this research tradition and suggestions for future research are at the end of the review paper. Thus, the two primary structural dimensions were uncertainty and consequences which much, but not all, subsequent research in perceived risk has used in the measurement procedure.
Bauer strongly emphasizes that he is concerned only with subjective perceived risk and not "real world" objective risk. It should be noted that Bauer clearly views perceived risk as not only related to consumers ' pre-decision information acquisition and processing activity but to post-decision processes as well.
Hence, he describes dissonance theory as concerned with " People will seek out information that confirms the wisdom of their decisions" p. It would have been well if some researchers in the perceived risk area had more carefully noted the view of dissonance reduction as risk reduction processes who, as a result of failing to do so, drew equivocal conclusions from their research e.
Arndt, a; Cox and Rich, ; and Schiffman, Cox a in his initial elaboration of Bauer's conceptualization states that it is often necessary to infer the presence of perceived risk since " The amount of perceived risk is construed to be a function of 1?
The amount at stake " Whereas certainty and consequences determine the amount of perceived risk "The nature of the risk perceived should be a function of the nature of the buying goals involved" p.
Given this "two factor" view of risk structure it then follows that risk might be reduced to a "tolerable level" by either or both 1 reducing the amount at stake e. While most subsequent research has employed these two dimensions specifically e. Cunningham, aothers have used a variant two-dimensional definition such as uncertainty and importance e.
Schiffman, ; Arndt, band some use just one dimension e. In some cases it is difficult to distinguish whether uncertainty or consequences is being measured e.
And rather than rating the uncertainty directly, Bettman's procedure is to compute the percentage of brands falling above an acceptable level of quality to the consumer Bettman, He reports researchwhich supports his conceptualization as opposed to Cunningham's a but he bases his arguments largely upon his finding that when uncertainty and importance are measured as he proposes, both these components contribute variance to the overall risk ratings, whereas using Cunningham's a uncertainty and danger components, by far the most variance is explained by the danger component alone.
That is, in the Cunningham procedure, when there is a great deal of danger, certainty doesn't matter and effects of certainty are felt only at low levels of danger. In the Bettman procedure, the effects of certainty are most pronounced at high levels of importance, which is what Bettman argues "should" be the case.Consumer behavior case studies shows examples on consumer learning and communication strategies, implications on customer behavior as a marketing strategy, importance of product positioning strategies using various customer research.
Behavioral Marketing case study clarifies what buyer wants from a business by examining . Consumer behavior and the customer journey are evolving. Explore micro-moments and how leading brands are showing up in the moments that matter. Millennials: a large demographic – but not always a wealthy one.
Millennials – defined here as consumers aged years – represent a sizeable demographic, ranging from 11% the population in ageing Japan, to 18% in more youthful markets, such as Vietnam and South Africa, to 31% in extreme cases such as the UAE, where there is a large group of workforce age ex-pats present.
Consumer behavior involves the way individuals, groups or organizations select, buy, and use products, services, ideas and experiences, to satisfy their needs and desires. Jun 29, · Understanding consumer behavior and purchasing decisions is a powerful marketing tool.
The more you know about why people buy, the better you'll . From the proposed definition of clean label and the consumer research that has shown which food categories are assumed to possess characteristics related to clean label, we can identify categories of food products from which consumers can infer the ‘cleanliness’ of food products.