TY - JOUR
T1 - New Product Decision Making
T2 - How Chance and Size of Loss Influence What Marketing Managers See and Do
AU - Forlani, David
AU - Mullins, John W.
AU - Walker, Orville C.
PY - 2002
Y1 - 2002
N2 - This article empirically examines, in a new-product decision context, the relationships among risk propensity, perceived risk, and risky choice decisions, when risk is operationalized as the chance of loss and the size of loss. The results indicate that perceptions of chance of loss directly influence choice among alternatives possessing different chances of loss and gain, whereas risk propensity directly influences choice among alternatives that differ in their size of loss and gain. The findings extend previous research by identifying dimension-specific effects (a) between who the decision maker is and the size of an investment's potential loss, and (b) between what the decision maker sees and the chance that an investment will experience a loss. These results not only contribute to theory, but also provide marketing managers with guidance for their risky choice decisions. The composition of a new product's risk has implications for the decisions marketing managers make, for the placement of managers in risk-sensitive positions, and for the presentation of information to individuals with oversight responsibility for the firm's product strategy decisions.
AB - This article empirically examines, in a new-product decision context, the relationships among risk propensity, perceived risk, and risky choice decisions, when risk is operationalized as the chance of loss and the size of loss. The results indicate that perceptions of chance of loss directly influence choice among alternatives possessing different chances of loss and gain, whereas risk propensity directly influences choice among alternatives that differ in their size of loss and gain. The findings extend previous research by identifying dimension-specific effects (a) between who the decision maker is and the size of an investment's potential loss, and (b) between what the decision maker sees and the chance that an investment will experience a loss. These results not only contribute to theory, but also provide marketing managers with guidance for their risky choice decisions. The composition of a new product's risk has implications for the decisions marketing managers make, for the placement of managers in risk-sensitive positions, and for the presentation of information to individuals with oversight responsibility for the firm's product strategy decisions.
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U2 - 10.1002/mar.10046
DO - 10.1002/mar.10046
M3 - Article
AN - SCOPUS:0036417385
SN - 0742-6046
VL - 19
SP - 957
EP - 981
JO - Psychology and Marketing
JF - Psychology and Marketing
IS - 11
ER -