A risk worth taking: Perceived risk as moderator of satisfaction, loyalty, and willingness-to-pay premium price

Riza Casidy; Walter Wymer

doi:10.1016/j.jretconser.2016.06.014

A risk worth taking

Perceived risk as moderator of satisfaction, loyalty, and willingness-to-pay premium price

Riza Casidy^*, Walter Wymer

^*Corresponding author for this work

Research output: Contribution to journal › Article

44 Citations (Scopus)

Abstract

This research investigates the moderating role of perceived risk in the relationship between satisfaction, loyalty, and willingness to pay premium price (WTP). A total of 364 respondents were recruited from Amazon's Mechanical Turk panel. Financial, social, performance, and psychological risks have significant negative effects on the relationship between satisfaction and WTP, whereas only financial risks have significant negative effects on the relationship between loyalty and WTP. Using moderated mediation analysis, we found that the mediating effects of loyalty diminish significantly in high social risk conditions and diminish completely in high financial risk conditions.

Original language	English
Pages (from-to)	189-197
Number of pages	9
Journal	Journal of Retailing and Consumer Services
Volume	32
DOIs	https://doi.org/10.1016/j.jretconser.2016.06.014
Publication status	Published - 1 Sep 2016
Externally published	Yes

Keywords

Loyalty
Moderated mediation
Risks
Satisfaction
Structural equation modelling
Willingness-to-pay

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10.1016/j.jretconser.2016.06.014

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title = "A risk worth taking: Perceived risk as moderator of satisfaction, loyalty, and willingness-to-pay premium price",

abstract = "This research investigates the moderating role of perceived risk in the relationship between satisfaction, loyalty, and willingness to pay premium price (WTP). A total of 364 respondents were recruited from Amazon's Mechanical Turk panel. Financial, social, performance, and psychological risks have significant negative effects on the relationship between satisfaction and WTP, whereas only financial risks have significant negative effects on the relationship between loyalty and WTP. Using moderated mediation analysis, we found that the mediating effects of loyalty diminish significantly in high social risk conditions and diminish completely in high financial risk conditions.",

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AB - This research investigates the moderating role of perceived risk in the relationship between satisfaction, loyalty, and willingness to pay premium price (WTP). A total of 364 respondents were recruited from Amazon's Mechanical Turk panel. Financial, social, performance, and psychological risks have significant negative effects on the relationship between satisfaction and WTP, whereas only financial risks have significant negative effects on the relationship between loyalty and WTP. Using moderated mediation analysis, we found that the mediating effects of loyalty diminish significantly in high social risk conditions and diminish completely in high financial risk conditions.

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KW - Moderated mediation

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KW - Satisfaction

KW - Structural equation modelling

KW - Willingness-to-pay

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