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 journalArticlepeer-review

63 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 languageEnglish
Pages (from-to)189-197
Number of pages9
JournalJournal of Retailing and Consumer Services
Volume32
DOIs
Publication statusPublished - 1 Sep 2016
Externally publishedYes

Keywords

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

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