Consumers’ perceived post purchase risk in luxury services |
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| Institution: | 1. Department of Kinesiology and Sport Management, Texas Tech University, Box 43011, Lubbock, TX 79409-3011, USA;2. Department of Tourism, Recreation, and Sport Management, University of Florida, 186C Florida Gym, PO Box 118208, Gainesville, USA;1. William F. Harrah College of Hotel Administration, University of Nevada, Las Vegas 4505 Maryland Parkway, Box 456013, Las Vegas, NV 89154, USA;2. Department of Hotel & Convention Management, Pai Chai University, 14 Yeon-Ja 1 Gil, Seo-gu, Daejeon 302-735, South Korea;3. College of Hotel & Tourism Management, Kyung Hee University, 26 Kyungheedae-ro, Dongdaemun-gu, Seoul 02447, South Korea;4. Department of Tourism Management, Kookje College, 56, Janganut-gil, Pyeongtaek-si, Gyeonggi-do, South Korea;1. Marketing Department, NEOMA Business School, 1 rue du Maréchal Juin, 76825, Mont Saint Aignan, France;2. Rosen College of Hospitality Management, University of Central Florida, 9907 Universal Blvd, Orlando, FL, 32819, United States;3. School of Tourism, Hanyang University, 17 Haengdang-dong, Seongdonggu, Seoul, 133-791, Republic of Korea |
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| 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. |
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| Keywords: | Luxury services Post-purchase risk Framing effects Propensity score analysis |
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