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The effect of perceived risk dimensions on purchase intention

Author

Listed:
  • Ramulu Bhukya
  • Sapna Singh

Abstract

Purpose - – The purpose of this paper is to examine the dimensions of perceived risk, which influence consumers’ purchase intention toward the retailers’ private labels. Based upon the previous literature, majorly four dimensions of the perceived risk have been considered for the study. These include – perceived functional risk, perceived financial risk, perceived physical risk and perceived psychological risk. Design/methodology/approach - – Data have been collected by proceeding with mall intercept method and approached shoppers with the questionnaire at the outlets of large Indian retailers – Reliance retail, Aditya Birla’s More, Big Bazaar and Spencer’s. A total of 352 valid questionnaires were obtained, wherein responses were recorded on Likert-type scale anchoring five-points where 1 indicates strongly disagree and 5 indicates strongly agree. Then, the analysis was carried out by using Exploratory Factor Analysis and Multiple Regression Analysis. Findings - – Findings of this study revealed that perceived functional risk, perceived financial risk, perceived physical risk and perceived psychological risk have the direct negative and significant effects on consumers’ intention to purchase retailers’ private labels. Thus, all the hypotheses were accepted and all the findings of this study were in line with previous studies. Research limitations/implications - – A limited set of product categories and brands were analyzed. Practical implications - – This study is of great interest for large retailers who wish to increase their private labels’ value proposition, with an in-depth understanding of these risks it could alter their value proposition accordingly and create more successful private labels in the market place. Originality/value - – This study is one among the very few studies which addressed the research on purchase intention toward private labels in Indian context.

Suggested Citation

  • Ramulu Bhukya & Sapna Singh, 2015. "The effect of perceived risk dimensions on purchase intention," American Journal of Business, Emerald Group Publishing Limited, vol. 30(4), pages 218-230, October.
  • Handle: RePEc:eme:ajbpps:v:30:y:2015:i:4:p:218-230
    DOI: 10.1108/AJB-10-2014-0055
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    Citations

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    Cited by:

    1. Bhat Ishfaq Hussain & Singh Sapna, 2018. "Examining the moderating effect of shopping value on private-label and loyalty in Indian grocery stores," Management & Marketing, Sciendo, vol. 13(1), pages 748-760, March.
    2. Mvondo, Gustave Florentin Nkoulou & Jing, Fengjie & Hussain, Khalid, 2023. "What's in the box? Investigating the benefits and risks of the blind box selling strategy," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    3. Alrawad, Mahmaod & Lutfi, Abdalwali & Alyatama, Sundus & Al Khattab, Adel & Alsoboa, Sliman S. & Almaiah, Mohammed Amin & Ramadan, Mujtaba Hashim & Arafa, Hussin Mostafa & Ahmed, Nazar Ali & Alsyouf, , 2023. "Assessing customers perception of online shopping risks: A structural equation modeling–based multigroup analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    4. Anam Bhatti & Shafique Ur Rehman, 2019. "Impact of Social risk, Government and Psychological Factors with Moderator Cultural Factors on Online Shopping Behavior in Pakistan," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 7(1), pages :31-44, March.
    5. Uma Thevi Munikrishnan & Kun Huang & Abdullah Al Mamun & Naeem Hayat, 2023. "Perceived Risk, Trust, and Online Food Purchase Intention Among Malaysians," Business Perspectives and Research, , vol. 11(1), pages 28-43, January.

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