Consumer's risk-reduction strategies: a review and synthesis

Abstract

The concept of perceived risk is fundamental to the understanding of consumer choice behaviour, be that the choice between products, brands, stores or non-store alternatives. Previous reviews of perceived risk have given little attention to the issue of risk-reduction. This is especially surprising, given the importance of theses strategies within the brand or store choice process.

This paper identifies thirty-seven risk-reduction strategies(RRS), based upon a review of over one hundred articles; evidence is presented for eighteen of the most commonly used strategies. Attention is given to changes in the methods for measuring RRS. A classification of RRs is presented extending Cox's concept of clarifying and simplifying consumers. The paper concludes by identifying key areas for further research.

Keywords:

• Risk-reduction
• Preceived risk
• Store choice
• Brand choice