The Effects of Demographic Variables on Measuring Perceived Risk

Abstract

Despite the importance of demographic variables which affect consumers' behaviour and the 30 years tradition of perceived risk research, the effect which demographic variables have on risk perception and reduction has not been consistently identified. In a survey of 180 purchasers, the effect of three demographic variables; age, gender, and social class, on 1 0 risk statements and 16 risk reducing strategies was measured. Age significantly affected risk perception and reduction; strategies became more useful as age increased. Gender proved to be the most important demographic variable. Nearly all the risks and risk reducing strategies were significantly less important and less useful for the males than females. Social class had a less marked effect than gender, but still produced significant differences although there was no consistent effect. Overall, the differences were significant enough to allow the rejection of the null hypothesis that demographic variables would have no effect on risk perception and reduction.Implications in terms of perceived risk measurement and possible use in segmentation are discussed. IntroductionSome of the most commonly used variables in almost all market research assessing consumer buying patterns are demographic variables. Their importance has also been long established in segmentation studies because of their prime influence on consumer behaviour and their ease of measurement. Given their obvious importance, it seems unusual that their effect on risk perception and reduction has not been fully established. Clearly, demographic factors might greatly influence the measurement of risk perception and reduction and, if this is so, researchers need to be aware of its potential influence before designing their questionnaires and samples. In addition, variations in risk perception and reduction caused by demographic factors could be used in market segmentation to design more tailored and effective risk reducing marketing mixes. A review of the literature provided surprisingly little conclusive evidence for the effects of demographic variables on risk perception and reduction. Accordingly, this study was designed to contribute further evidence for the effects of demographic variables.

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