Consumers’ perceived post purchase risk in luxury services

Yonghwan Chang, Yong Jae Ko

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

The objectives of this study are to: (1) define the concept of perceived post purchase (3P) luxury risk and (2) develop and validate a psychometrically sound 3P Luxury Risk Scale. A qualitative study and two field studies were conducted to develop and test the scale, and to examine the predictive validity of 3P luxury risk in a nomological network of word-of-mouth (WOM). The survey data is gathered from 333 actual customers of five golf clubs. Integrating structural equation modeling with propensity score analysis, the results of Study 1 reveal that 12 items adequately capture the dimensions of 3P luxury risk. After controlling for framing effects, the results of Study 2 indicate that all of the dimensions of 3P luxury risk negatively influence WOM. This article attempts to shed a new light on the realm of luxury risk studies incorporating normative and behavioral decision-making approaches.

Original languageEnglish (US)
Pages (from-to)94-106
Number of pages13
JournalInternational Journal of Hospitality Management
Volume61
DOIs
StatePublished - Feb 1 2017

Bibliographical note

Publisher Copyright:
© 2016 Elsevier Ltd

Keywords

  • Framing effects
  • Luxury services
  • Post-purchase risk
  • Propensity score analysis

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