Extrinsic cues and perceived risk: the influence of consumption situation

Abstract

Purpose: This paper aims to investigate the influence of consumption situation on the use of extrinsic cues, such as price and expert opinion, in the assessment of different types of risk associated to purchase decisions. Design/methodology/approach: An experimental design was conducted in a sample of 128 postgraduate students, using red wine as product category. The experiment manipulated consumption situation, price, and expert opinion about the product. Different types of risks associated with the purchase decision and purchase intention were then measured. Findings: Results suggest that consumption situation affects the use of price in the assessment of performance risk, but only in the case of negative expert opinion about the products. Additionally, expert opinion demonstrated to have a strong effect reducing performance risk and increasing intention to buy. Research limitations/implications: The main limitations of the present research are associated with the exploratory and inconclusive characteristic of the performed mediation tests, and the use of just one product category in the research. Future research should replicate the study in other product categories and include other types of extrinsic cues. Practical implications: Managers should consider the complex effects of price on the assessment of risks related with a purchase, and the effect of consumption situation on the process. In addition, managers should use positive expert opinions in advertising and point‐of‐purchase material. Originality/value: The study analyzes the influence of consumption situation on consumers' use of different extrinsic cues to assess risks associated with the purchase of uncertain quality products.