Consumer perceived risk in successive product generations

Purpose - The study examines the consumer perceived performance risk in successive product generations. Design/methodology/approach - The results are based on ten focus group interviews. We divide risk into two different levels based on its criticality (attribute and functionality) to be able to assess more than its mere presence in an innovation. Findings - The study shows performance risk to differ between generations representing different innovation levels, and that this risk is moderated by whether the consumer has usage experience of the original innovation. The results show that the risk consumers perceive is more critical in a modified successor than in an original innovation provided that consumers have usage experience of the latter one. Practical implications - This study has implications for companies aiming at reducing consumer perceived risk in innovative product launches. Originality/value - Perceived risk is an important construct in innovation adoption research. Although it has been used to measure and predict individual adoption patterns towards a single innovation, little research has examined its impact on successive product generations. The results offer both theoretical and practical implications.