• Title/Summary/Keyword: consumer risk

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Sampling Plans Based on Truncated Life Test for a Generalized Inverted Exponential Distribution

  • Singh, Sukhdev;Tripathi, Yogesh Mani;Jun, Chi-Hyuck
    • Industrial Engineering and Management Systems
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    • v.14 no.2
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    • pp.183-195
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    • 2015
  • In this paper, we propose a two-stage group acceptance sampling plan for generalized inverted exponential distribution under truncated life test. Median life is considered as a quality parameter. Design parameters are obtained to ensure that true median life is longer than a given specified life at certain level of consumer's risk and producer's risk. We also explore situations under which design parameters based on median lifetime can be used for other percentile points. Tables and specific examples are reported to explain the proposed plans. Finally a real data set is analyzed to implement the plans in practical situations and some suggestions are given.

Offline Shopping During the COVID-19 Pandemic: Between Need and Fear

  • USMAN, Hardius;PROJO, Nucke Widowati Kusumo;CHAIRY, Chairy
    • Fourth Industrial Review
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    • v.2 no.2
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    • pp.25-37
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    • 2022
  • Purpose - The purposes of this research are: (1) Building and testing a research model that integrates Theory of Reasoned Action (TRA) with fear, perceived risk, and health protocols; (2) Examining the impact of compliance with health protocols on consumer behavior when offline shopping. Research design, data, and methodology - The data collection uses the self-administered survey method, and the questionnaire is distributed online. A total of 504 Indonesian population aged 18 years old or more participate in this research. Data are analyzed using factor analysis, multiple regression, and multiple regression with interaction. Result - This study reveals several findings: (1) Attitude and subjective norm have a significant effect on offline shopping behavior; (2) fear has a direct and indirect effect on offline shopping behavior; (3) the effect of perceived risk on the intensity of offline shopping is determined by compliance with health protocols. Conclusion - This paper discusses the direct influence of attitudes and subjective norms on behavior. This research also integrates fear, perceived risk, and health protocol factors in TRA, which may not have been done much, especially in the COVID-19 pandemic context.

A Study on the Perceived Size Related Risk and Clothing Behaviors According to Perceived Body Characteristics and Satisfaction with Body Characteristics -Focus on Internet Fashion Consumers- (신체인식과 신체만족도에 따른 치수 관련 위험지각 및 의복행동에 관한 연구 -인터넷 패션 소비자를 대상으로-)

  • Lee, Jeong-Yim
    • Journal of the Korean Society of Clothing and Textiles
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    • v.35 no.5
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    • pp.575-586
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    • 2011
  • This study first examines the effect of perceived body characteristics, satisfaction with body characteristics on perceived size related risk, and internet shopping clothing behaviors; in addition, it also examines the effect of the perceived size related risk on clothing behaviors. A questionnaire was conducted with responses from 219 female students, aged 19 to 25. Data was analyzed by frequency analysis, correlation analysis, ANOVA and Duncan test. The findings suggest that a consumer satisfied with body characteristics has active clothing behaviors to improve her appearance or body image. The effects of perceived body characteristics and satisfaction with body characteristics on perceived size related risk are also identified. The perceived size related risk increases when the size information of an internet shopping mall is insufficient compared to the situation when the consumer is not satisfied with her body characteristics. The meaningful differences of clothing behaviors according to extent of perceived size related risk are identified.

The Influence of Risk Perception upon Consumer"s Attitude and Purchase Behavior - Focusing on Melamine-Contained Food- (위험 지각이 소비자 태도 및 식품 구매 행동에 미치는 영향 - 멜라민 함유 식품군을 중심으로-)

  • Choi, Eun-Joo
    • Journal of the East Asian Society of Dietary Life
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    • v.20 no.3
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    • pp.481-490
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    • 2010
  • The shock of melamine-contained food has been known with the incident of hospitalization or death of infants at the age of 11-month old in China. The purpose of this study was to examine consumers' risk perception, attitude and purchase behavior of melamine-contained food which recently came to the fore as a social issue, focusing on the relationship between consumers' attitude and purchase behavior based on physical risk, social risk, psychological risk, financial risk, consumers' attitude and purchase behavior. Study findings are as follows. First, the four factors of risk perception of melamine-contained food were significantly different by consumers. Consumers regarded social risk as most significant and it was followed by financial risk and psychological risk. And they regarded physical risk as most insignificant. Second, as for the difference of risk perception by demographic features, such factors as gender, age, marital status and schooling had no statistically significant influence. Third, the potential risk of melamine-contained food had a negative influence upon consumers' attitude and purchase behavior. In addition, consumers' attitude and purchase behavior were decided by perceived risks. This finding implies that consumers' attitude can accompany with negative or positive behavior and consumers' behavior can be related to social, financial and physical risks. Because the risk perception of melamine-contained food can cause consumers' distrust about all kinds of food in general, domestic manufacturers of milk product-contained confectionery and food can be harmed. In order to overcome this problem and make consumers purchase all the milk products and milk-contained food without fear, governmental agencies must reestablish systems with which the safety of imported raw materials and its processing can be insured and manufactures must improve the quality of products in a diverse and discriminative manner. This study seems to be meaningful in that it examined consumers' risk perception of melamine-contained food, a current social issue, and then looked into the influence of risk perception upon consumers" attitude and behavior, thus presenting the strategy of reestablishing the system of relationship between consumers and business entities in a desirable manner.

Surrogate Internet Shopping Malls: The Effects of Consumers' Perceived Risk and Product Evaluations on Country-of-Buying-Origin Image (망상대구점(网上代购店): 소비자감지풍험화산품평개대원산국형상적영향(消费者感知风险和产品评价对原产国形象的影响))

  • Lee, Hyun-Joung;Shin, So-Hyoun;Kim, Sang-Uk
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.208-218
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    • 2010
  • Internet has grown fast and become one of the most important retail channels now. Various types of Internet retailers, hereafter etailers, have been introduced so far and as one type of Internet shopping mall, 'surrogate Internet shopping mall' has been prosperous and attracting consumers in the domestic market. Surrogate Internet shopping mall is a unique type of etailer that globally purchases well-known brand goods that are not imported in the market, completes delivery in the favor of individual buyers, and collects fees for these specific services. The consumers, who are usually interested in purchasing high-end and unique but not eligible brands, have difficulties to purchase these items overseas directly from the retailers or brands in other countries due to worries of payment failure and no address available for their usually domestic only delivery. In Korea, both numbers of surrogate Internet shopping malls and the magnitude of sales have been growing rapidly up to more than 430 active malls and 500 billion Korean won in 2008 since the population of consumers who want this agent shopping service is also expending. This etail business concept is originated from 'surrogate-mediated purchase' and this type of shopping agent has existed in many different forms and also in wide ranges of context level for quite a long time. As marketers face their individual buyers' representatives instead of a direct contact with them in many occasions, the impact of surrogate shoppers on consumer's decision making has been enormously important and many scholars have explored various range of agent's impact on consumer's purchase decisions in marketing and psychology field. However, not much rigorous research in the Internet commerce has been conveyed yet. Moreover, since as one of the shopping agent surrogate Internet shopping malls specifically connect overseas brands or retailers to domestic consumers, one specific character of the mall's, image of surrogate buying country, where surrogate purchases are conducted in, may play an important role to form consumers' attitude and purchase intention toward products. Furthermore it also possibly affects various dimensions of perceived risk in consumer's information processing. However, though tremendous researches have been carried exploring the effects of diverse dimensions of country of origin, related studies in Internet context has been rarely executed. There have been some studies that prove the positive impact of country of origin on consumer's evaluations as one of information clues in product manufacture descriptions, yet studies detecting the relationship between country image of surrogate buying origin and product evaluations rarely undertaken regarding this specific mall type. Thus, the authors have found it well-worth investigating in this specific retail channel and explored systematic relationships among focal constructs and elaborated their different paths. The authors have proven that country image of surrogate buying origin in the mall, where surrogate malls purchase products in and brings them from for buyers, not only has a positive effect on consumers' product evaluations including attitude and purchase intention but also has a negative effect on all three dimensions of perceived risk: product-related risk, shipping-related risk, and post-purchase risk. Specifically among all the perceived risk, product-related risk which is arisen from high uncertainty of product performance is most affected (${\beta}$= -.30) by negative country image of surrogate buying origin, and also shipping-related risk (${\beta}$= -.18) and post-purchase risk (${\beta}$= -.15) get influenced in order. Its direct effects on product attitude (${\beta}$= .10) and purchase intention (${\beta}$= .14) are also secured. Each of perceived risk dimension is proven to have a negative effect on purchase intention through product attitude as a mediator (${\beta}$= -.57: product-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.24: shipping-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.44: post-purchase risk ${\rightarrow}$ product attitude) as well. From the additional analysis, the paths of consumers' information processing are shown to be different based on their levels of product knowledge. While novice consumers with low level of knowledge consider only perceived risk important, expert consumers with high level of knowledge take both the country image, where surrogate services are conducted in, and perceived risk seriously to build their attitudes and formulate decisions toward products more delicately and systematically, which is in line with previous studies. This study suggests several pieces of academic and practical advice. Precisely, country image of surrogate buying origin does affect on consumer's risk perceptions and behavioral consequences. Therefore a careful selection of surrogate buying origin is recommended. Furthermore, reducing consumers' risk level is required to blossom this new type of retail business whether its consumer are novices or experts. Additionally, since consumer take different paths of elaborating information based on their knowledge levels, sophisticated marketing approaches to each group of consumers are required. For novice buyers strong devices for risk mitigation are needed to induce them to form better attitudes and for experts selections of better and advanced countries as surrogate buying origins are advised while endorsement strategy for the site might work as a reliable information clue to all consumers to mitigate the barriers to purchase goods online. The authors have also explained that the study suffers from some limitations, including generalizability. In future studies, tests of and comparisons among different types of etailers with relevant constructs are recommended to broaden the findings.

Effect of Brand Popularity in a Foreign Market on Consumer Behavior in a Franchise Cosmetic Retailer's Online Shop

  • KIM, Ji-Hern;GONG, Tae Gyung;AHN, So Jung
    • The Korean Journal of Franchise Management
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    • v.11 no.2
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    • pp.17-22
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    • 2020
  • Purpose: As consumers have difficulty in brand choice due to excessive information, using brand popularity as an advertising cue (e.g., Sales No. 1, Hit Product) has been getting more attention as an effective curation strategy for decreasing consumers' cognitive efforts. Accordingly, recent studies empirically demonstrate that consumers tend to prefer and choose a brand with a popularity cue and offer a useful information regarding how to use a popularity cue in marketing communication. However, extant research has mainly focused on investigating the impact of "brand popularity in a domestic market" on consumer behaviors. Thus, little is known about the effect of "brand popularity in a foreign market" on local consumers' decision-making process. Given that domestic consumers tend to purchase imported products from overseas countries, it can be meaningful information for global companies. Therefore, this research derives and tests the five hypotheses to examine how local consumers respond to brand popularity in a foreign market as an advertising cue. Specifically, it tests the three hypotheses regarding the direct and indirect effects of brand popularity in a foreign market on risk perception and purchase intention. Then, it tests two additional hypotheses about moderating effects of psychic distance on the relationship between brand popularity and risk perception as well as on the relationship between brand popularity and purchase intention. Seventy participants are exposed to an advertisement for an Indian cosmetic brand using a popularity cue in Indian market and answer the questions about brand evaluation. For data analysis, regression analysis is employed. The findings of this research show that perceived brand popularity lowers local consumers' perceived risk with a foreign brand. However, perceived brand popularity does not have a direct impact on purchase intention while it has an indirect effect through perceived risk. Meanwhile, psychic distance moderates the effect of perceived brand popularity on perceived risk level, but it has no impact on the relationship between brand popularity and purchase intention. This research is one of the first studies that demonstrate the positive impact of brand popularity in a foreign market on a local consumer's purchase decision, and it shows the effect can be moderated by psychic distance.

Comparison of Exposure Estimates Using Consumer Exposure Assessment Models and the Korean Exposure Algorithm (국내외 소비자 제품 노출평가모델을 이용한 노출량 비교)

  • Sohyun Kang;Miyoung Lim;Kiyoung Lee
    • Journal of Environmental Health Sciences
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    • v.50 no.1
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    • pp.43-53
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    • 2024
  • Background: Exposure assessment is an important part of risk assessment for consumer products. Exposure models are used when estimating consumer exposures by considering exposure routes, subjects, and circumstances. These models differ based on their tiers, types, and target populations. Consequently, exposure estimates may vary between models. Objectives: This study aimed to compare the results of different exposure models using identical exposure factors. Methods: Chemical exposure from consumer products was calculated using four consumer exposure assessment models: Targeted Risk Assessment 3.1, Consumer Exposure Model 2.1 (CEM), ConsExpo web 1.1.1, and the Korean Exposure Algorithm (primary and detailed) issued by the Ministry of Environment, No. 972 (MOE). The same exposure factors were used in each model to calculate inhalation and dermal exposures to acetaldehyde, d-limonene, and naphthalene in all-purpose cleaners, leather coating sprays, and sealants. Results: In the results, TRA provided the highest estimate. Generally, MOE (detailed), CEM and ConsExpo showed lower exposures. The inhalation exposure for leather coating spray showed the largest differences between models, with differences reaching up to 1.2×107 times. Since identical inputs were used for the calculations, it is likely that the models significantly influenced the estimated results. Conclusions: Despite using the same exposure factors to calculate dermal and inhalation exposures, the results varied substantially based on the model's exposure algorithm. Therefore, selecting an exposure model for assessing consumer products should be done with careful consideration.

Effect of Perceived Risk, Perceived Benefit, and Korea Wave to Crowdfunding Participation in China (중국 소비자의 크라우드 펀딩 참여에 있어 지각된 위험, 지각된 이익, 한류문화콘텐츠의 영향에 관한 연구)

  • Lee, Han-Suk
    • The Journal of the Korea Contents Association
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    • v.16 no.1
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    • pp.204-213
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    • 2016
  • Crowd funding can be understood that consumers are participated in production process before real commercialization. These days there are some expectancy and worry about foreign capital influence to Korea Wave. This study is to find out the possibility that Korea Wave can lead to investment to make new cultural contents and find possibility as new investment funding source. Expecially this research did survey at Gwangjou in China with 20s and find their possibility to invest money for crowd funding related to Korea Wave and we evaluate consumer's Korea Wave preference. The results showed that with more preference of Korea Wave decrease consumer's perceived risk and increase consumer's perceived benefit. With this research we can find some possibility of motive for consumer's direct investment to Korea Wave project in Korea.

A study of consumer's innovativeness and the trust in other domain affecting the intention to use mobile payment services (소비자 혁신성과 이전 서비스에 대한 신뢰에 따른 모바일결제 사용의도에 관한 연구)

  • Jung, Seung-Min
    • Management & Information Systems Review
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    • v.36 no.2
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    • pp.113-132
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    • 2017
  • This research focuses on the effect of consumer's innovativeness and the trust in other domain affecting the intention to use mobile payment services. The result of this paper reveals that consumer's innovativeness has both a direct impact on the intention to use mobile payment services and a indirect impact. Relative advantage and image play a mediating role between consumer's innovativeness and the intention to use mobile payment services. Moreover, the study reveals that the trust in other domain not only directly affects on the intention to use mobile payment services but also indirectly affects by mediating relative advantage, image, and perceived risk. This study indicated that a customer's established trust in other domain influences his or her trust in mobile payment services. Electronic payment service providers should consider that the trust-building process encompasses other domain as well as mobile relationships. And electronic payment firms should do their best to reduce customers' perceptions of risk.

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Differences in Perceived Financial Risk according to Price Discounts and Product Types of Consumers in Korea and Thailand

  • Kim, Eun-Hee
    • The Journal of Industrial Distribution & Business
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    • v.7 no.2
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    • pp.25-32
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    • 2016
  • Purpose - The objective of this study is to investigate the differences and interaction effects on the perceived financial risk between Korean and Thai consumers according to the types of product(utilitarian and hedonic) and price discount (bundle and 50%off). Research design, Data and Methodology - This paper sets up 6 research subjects. Data collection was carried out in Korea and Thailand. Data was made of 154 Korean and 147 Thai consumers. As for the independent variables for this study, consumer types are composed of Korean and Thai consumers, price discount types were bundle(1+1) and 50% off price, and product types consist of utilitarian and hedonic product. The dependent variable is perceived as a financial risk. Each question is measured as a Likert-type five-point scale. Results - According to the price discount and product type, perceived financial risk of Thai consumers is confirmed to be a larger one than that of Korean consumers. Also, there are interaction effects in the perceived financial risk. Conclusion - Our findings can be used as useful information for global retail markets as marketing strategies in future Korean enterprise through a comparative study on Korean and Thai consumers.