The Role of Perceived Risk in the Quality-Value Relationship: A Study in a Retail Environment

Jill Sweeney, G.N. Soutar, L.W. Johnson

Research output: Contribution to journalArticle

1025 Citations (Scopus)

Abstract

This study extends previous research on perceived value by including the role of perceived risk within a model of the antecedents and consequences of perceived value. The model was tested in a retail setting using a sample of consumers actively looking for an electrical appliance. The mediating impact of perceived risk on the quality-value relationship ms specifically examined. Empirical results confirmed that not only do perceived product and service quality lead to perceived value for money in a service encounter but that these quality components reduce perceived risk. Perceived risk was found to play an important role in the perceived product and service quality-value for money relationship and was found to be a significant mediator of this relationship. Perceived value for money was also found to be a significant mediator of perceived quality, price and risk and willingness-to-buy. The results obtained have major implications for retailers as well as for future research in this strategically important area of consumer research.
Original languageEnglish
Pages (from-to)77-105
JournalJournal of Retailing
Volume75
Issue number1
DOIs
Publication statusPublished - 1999

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