Perceived Purchase Risk in the Technological Goods Purchase Context: An Instrument Development and Validation

International Journal of Research on Commerce, IT and Management, Vol. 2, No. 1, January 2012

16 Pages Posted: 28 Nov 2011 Last revised: 20 Jan 2012

See all articles by Imam Salehudin

Imam Salehudin

University of Indonesia (UI) - Department of Management; University of Queensland, Business School, Students; University of Indonesia (UI) - Faculty of Economics and Business

Date Written: November 28, 2011

Abstract

Each purchase decision is most likely to be a risky decision. Woodside and DeLozier (1976) proposed that consumer purchase-related behaviors correspond to the perceived level of risk in the purchase. Therefore, understanding consumer’s perceived purchase risk is paramount for marketers – especially marketers of high risk products. This study intends to develop a valid and reliable instrument in measuring consumer’s perceived purchase risk using the concept of perceived risk by Peter and Ryan (1976). This study does not intend to infer conclusions regarding the population of respondents used in the research, but only conclusions regarding the sample of items used in the instrument.

The instrument was validated using two purchase context, smartphone and netbook purchase. An item is considered valid only if it tested valid in both contexts. Confirmatory factor analysis was used as the primary method of analysis to test the nomological validity of the instrument.

Correlations between instruments were also tested to analyze convergent and concurrent validity of the instrument. This study employs LISREL for WINDOWS 8.51 Full Version (Jőreskog and Sőrbom, 2001) as software used for the analysis.

The result of this study is that all instrument used in the study have good nomological validity. However, some item were found to be not valid in at least one purchase context, thus was excluded from the measurement model. The newly developed instrument has better convergent validity, even though with slightly weaker concurrent validity than existing instrument.

Keywords: Validation, Perceived Purchase Risk, Technological Goods

JEL Classification: C93, D81, M30

Suggested Citation

Salehudin, Imam, Perceived Purchase Risk in the Technological Goods Purchase Context: An Instrument Development and Validation (November 28, 2011). International Journal of Research on Commerce, IT and Management, Vol. 2, No. 1, January 2012, Available at SSRN: https://ssrn.com/abstract=1965439 or http://dx.doi.org/10.2139/ssrn.1965439

Imam Salehudin (Contact Author)

University of Indonesia (UI) - Department of Management ( email )

Campus UI Depok
Depok, West Java 16424
Indonesia

University of Queensland, Business School, Students ( email )

St Lucia
Australia

University of Indonesia (UI) - Faculty of Economics and Business ( email )

Kampus Baru
Depok, West Java 16424
Indonesia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
170
Abstract Views
2,278
rank
198,105
PlumX Metrics