Individual-, Product-, and Situation-Specific Factors: Is Perceived Risk Affected by Their Interaction?

An exploratory study was undertaken to investigate possible interaction effects between three classes of variables traditionally identified as influencing perceived risk. The three classes of variables are individual-specific, product-specific, and situation-specific. Prior research has focused on the main effects of one of these three classes of variables, but little attention has been paid to the extent to which they interact. Results indicate that interaction effects do exist between the three classes of factors and that they influence the amount of perceived risk. Marketing strategies to reduce the influence of situational variables are suggested as a means of improving the marketing strategy for high-risk products.