Developing a deeper understanding of post-purchase perceived risk and behavioral intentions in a service setting

Abstract

Researchers and service providers have realized that a disproportionate share of a firm's sales and profits come from a relatively small number of loyal customers that repeatedly purchase the firm's services. In many service settings, such as health care, repeated interactions between the service provider and the client are necessary for service delivery. While service quality is certainly important, it is also important that customers' perceptions of perceived risk are taken into account and that customers perceive a degree of control over the services provided. We develop a conceptual model of linkages between the physical environment of the service, perceived control over the service and service quality and, demonstrate through two empirical studies, how these factors affect perceived risk and post-purchase behavioral intentions. Both studies were conducted in health care settings. In the first study, we collected data using a mail survey of 192 patients after their treatment from a regional hospital. In the second study, survey data were collected from 101 patients of a specialized clinic providing alternative therapies within a major hospital. Our results provide confirmation that the favorable physical environment of the service setting enhances perceived control and perceptions of service quality. Moreover, perceived control and perceived quality of the service provider reduces post-purchase perceived risk. Finally, post-purchase perceived risk reduces behavioral intentions, while perceived quality of the service provider enhances behavioral intentions.

One firm, one product, two prices: Channel-based price differentiation and customer retention

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“…Perceived risk is important to marketers as it influences pre-purchase attitudes, evaluations and intentions, as well as, post-purchase evaluations, satisfaction and loyalty (Campbell & Goldstein, 2001;Chen & Li, 2007;Grewal, Gopalkrisnan, Gotlieb, & Levy, 2007;Gurhan-Canli & Batra, 2004;Park, Lennon, & Stoel, 2005;Tuu & Olsen, 2009;Yuksel & Yuksel, 2006). Perceived risk is closely linked to the level of involvement in the buying decision making process due to the complexity of considerations involved (Laurent & Kapferer, 1985).…”

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