Perceived risk, risk-reduction strategies (RRS) and consumption occasions: Roles in the wine consumer's purchase decision

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2013

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Bruwer, J.
Fong, M.
Saliba, A.

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Journal article

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Asia Pacific Journal of Marketing and Logistics, 2013; 25(3):369-390

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Abstract

Purpose - This exploratory study aimed to examine the relationship between perceived risk, risk-reduction strategies (RRS), and the occasion-based purchase of wine, a product widely regarded as representing a complex buying situation for consumers in a retail setting. Design/methodology/approach - Data was collected in a specialty wine store in Adelaide, Australia using a self-administered questionnaire. A 22-item Perceived Risk Scale (PRS) was developed and operationalised in this study returning a Cronbach alpha coefficient of 0.717. Findings - The highest perceived risk dimension, namely financial risk, did not differ between risk segments, while the high perceived risk segment observed more social risk than the low perceived risk segment. The high-perceived risk segment also observed more psychological risk. Information seeking was the most important RRS used across seven different wine consumption occasions. The decreasing order of importance in consumption occasions had an inverse relationship to the closeness of the relationship the wine consumers had with those with whom they may consume the wine they had purchased. Research limitations/implications - Marketers and managers have the opportunity to target consumers mindful of their specific perceived risks, and help reduce these uncertainties through the use of individualised RRS management focused on consumers' occasion-based wine purchases. Originality/value - This study is of value to academic researchers and wine industry practitioners alike. It contributes to the knowledge base by developing a new Perceived Risk Scale (PRS) to investigate the relationship perceived risk has on the types of RRS wine consumers use when purchasing wine for various consumption occasions.

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Copyright 2013 Emerald Group Publishing Limited

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