Marketing Letters

, Volume 1, Issue 2, pp 171–179 | Cite as

Scaling and dimensionalizing perceived risk from ratings data: Managers' risk perception of business computers

  • Chezy Ofir
  • Gordon G. Bechtel


A model for dimensionalizing and scaling perceived risk is presented. The scaling procedure provides risk values at the brand and category level on each of several risk dimensions. The model is illustrated with business managers' risk assessments of microcomputer profiles. The relative importance of various intrinsic and extrinsic cues in determining these perceptions was examined as part of the validation procedure for the several risk scales.

Key words

Perceived Risk Intrinsic Product Cues Extrinsic Product Cues Risk Dimensions 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Addelman, S. (1962). “Orthogonal Main-Effect Plan for Asymmetrical Factorial Experiments,” Technometrics 4(1), 21–46.Google Scholar
  2. Bearden, W. O., and T. A.Shimp. (1982). “The Use of Extrinsic Cues to Facilitate Product Adoption,” Journal of Marketing Research 19, 229–239.Google Scholar
  3. Bechtel, G. G., and C.Ofir. (1988). “Aggregate Item Response Analysis,” Psychometrika 53, 93–107.Google Scholar
  4. Bettman, J. R. (1973). “Perceived Risk and Its Components: Model and Empirical Test,” Journal of Marketing Research 10, 184–190.Google Scholar
  5. Birnbaum, A. (1968). “Some Latent Trait Models and Their Use in Inferring an Examinee's Ability.” In F. M.Lord and M. R.Novick (eds.), Statistical Theories of Mental Test Scores. Reading, Mass.: Addison-Wesley.Google Scholar
  6. Cohen, J., and P.Cohen. (1975). Applied Multivariate Regression/Correlation Analysis for the Behavioral Sciences, Hillsdale, New Jersey: Lawrence Erlbaum Associates, Publishers.Google Scholar
  7. Dickerson, M. D., and J. W.Gentry. (1983). “Characteristics of Adopters and Non-Adopters of Home Computers,” Journal of Consumer Research 10(2), 225–235.Google Scholar
  8. Engel, J. F., and R. D.Blackwell. (1982). Consumer Behavior, 4th ed., New York: The Dryden Press.Google Scholar
  9. Engel, J. F., R. D.Blackwell, and P. W.Miniard. (1986). Consumer Behavior, 5th ed., New York: The Dryden Press.Google Scholar
  10. Gable, J. S., S. Tylka, and M. A. Maidique. (1984). “Preventing One Bad Apple from Turning the Barrel Sour,” International Management August, 50–54.Google Scholar
  11. Green, P. E. (1974). “On the Design of Choice Experiments Involving Multifactor Alternatives,” Journal of Consumer Research 1, 61–68.Google Scholar
  12. Gunst, R. F. and R. L.Mason. (1980). Regression Analysis and Its Application. New York: Marcel Dekker, Inc.Google Scholar
  13. Kaplan, L. B., G. J.Szybillio, and J.Jacoby. (1974). “Components of Perceived Risk in Product Purchase: A Cross-Validation,” Journal of Applied Psychology 59(3), 287–291.Google Scholar
  14. Monroe, K. B., and S. M.Petroshius. (1981). “Buyers' Perceptions of Price: An Update of the Evidence.” In H. H.Kassarjian and T. S.Robertson, (eds.), Perspectives in Consumer Behavior. Glenview, Ill.: Scott, Foreman, 43–55.Google Scholar
  15. Ofir, C., and A.Khuri. (1986). “Multicollinearity in Marketing Models: Diagnostics and Remedial Measures,” International Journal of Research in Marketing 3, 181–205.Google Scholar
  16. Olson, J. C. (1977). “Price as an Informational Cue: Effects on Product Evaluation.” In A. G.Woodside, J. N.Sheth, and P. D.Bennet, (eds.), Consumer and Industrial Buying Behavior. New York: North Holland, 267–286.Google Scholar
  17. Peter, J. P., and M. J.Ryan. (1976). “An Investigation of Perceived Risk at the Brand Level,” Journal of Marketing Research 13, 184–188.Google Scholar
  18. Peter, J. P., and L. X.TarpeySr. (1975). “A Comparative Analysis of Three Consumer Decision Strategies,” Journal of Consumer Research 2, 29–37.Google Scholar
  19. Ross, I. (1975). “Perceived Risk and Consumer Behavior: A Critical Review.” In M. J. Schlinger, (ed.), Advances in Consumer Research, Vol. 2. Cincinnati Association for Consumer Research, 1–19.Google Scholar
  20. Shimp, T. A., and W. O.Bearden. (1982). “Warranty and Other Extrinsic Cue Effects on Consumers' Risk Perceptions,” Journal of Consumer Research 9, 38–46.Google Scholar
  21. Sternthal, B., and C. S.Craig. (1982). Consumer Behavior. Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
  22. Takeuchi, H. (1981). “U.S. Pioneer Electronics Corporation.” In E. R.Corey, C. H.Lovelock, and S.Ward, (eds.), Problems in Marketing. New York: McGraw Hill, 316–340.Google Scholar
  23. Torgerson, W. S. (1958). Theories and Methods of Scaling. New York: Wiley.Google Scholar
  24. Wittink, D. R. and P.Cattin. (1981). “Alternative Estimation Methods for Conjoint Analysis: A Monte Carlo Study,” Journal of Marketing Research 18, 101–106.Google Scholar
  25. Zikmund, W. G., and J. E.Scott. (1973). “A Multivariate Analysis of Perceived Risk, Self Confidence and Information Sources.” In S.Ward and P.Wright, (eds.), Advances in Consumer Research, Vol. 1. Urbana, Illinois: Association for Consumer Research, 406–416.Google Scholar

Copyright information

© Kluwer Academic Publishers 1990

Authors and Affiliations

  • Chezy Ofir
    • 1
  • Gordon G. Bechtel
    • 2
  1. 1.Hebrew University of JerusalemJerusalemIsrael
  2. 2.University of FloridaGainesvilleUSA

Personalised recommendations