Consumers' perceived post purchase risk in luxury services. (February 2017)

• Record Type: Journal Article
• Authors: Chang, Yonghwan; Ko, Yong Jae
• Is Part Of: International journal of hospitality management. Volume 61(2017)
• Page Start: 94
• Page End: 106
• Publication Date: 2017-02
• Subjects: Luxury services -- Post-purchase risk -- Framing effects -- Propensity score analysis; Hotel management -- Periodicals; Restaurant management -- Periodicals; Food service management -- Periodicals; Hôtels -- Gestion -- Périodiques; Restaurants -- Gestion -- Périodiques; Services alimentaires -- Gestion -- Périodiques; Food service management; Hotel management; Restaurant management; Periodicals; 647.94
• DOI: 10.1016/j.ijhm.2016.09.005
• Languages: English
• ISSNs: 0278-4319

Abstract

Abstract: The objectives of this study are to: (1) define the concept of perceived post purchase (3P) luxury risk and (2) develop and validate a psychometrically sound 3P Luxury Risk Scale. A qualitative study and two field studies were conducted to develop and test the scale, and to examine the predictive validity of 3P luxury risk in a nomological network of word-of-mouth (WOM). The survey data is gathered from 333 actual customers of five golf clubs. Integrating structural equation modeling with propensity score analysis, the results of Study 1 reveal that 12 items adequately capture the dimensions of 3P luxury risk. After controlling for framing effects, the results of Study 2 indicate that all of the dimensions of 3P luxury risk negatively influence WOM. This article attempts to shed a new light on the realm of luxury risk studies incorporating normative and behavioral decision-making approaches.