Skip to main content
Log in

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

  • Published:
Journal of the Academy of Marketing Science Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1

Similar content being viewed by others

References

  • Adaval, R., & Monroe, K. B. (2002). Automatic construction and use of contextual information for product and price evaluations. Journal of Consumer Research, 28, 572–588.

    Article  Google Scholar 

  • Alhakami, A. S., & Slovic, P. (1994). A psychological study of the inverse relationship between perceived risk and perceived benefit. Risk Analysis 14(6), 1085–1096.

    Article  Google Scholar 

  • Averill, J. R. (1973). Personal control over aversive stimuli and its relationship to stress. Psychological Bulletin, 80(4), 286–303.

    Article  Google Scholar 

  • Babin, B. J., & Boles, J. S. (1998). Employee behavior in a service environment: a model and test of potential differences between men and women. Journal of Marketing, 62, 77–91.

    Article  Google Scholar 

  • Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74–94.

    Google Scholar 

  • Baker, J., Parasuraman, A., Grewal, D., & Voss, G. B. (2002). The influence of multiple store environment cues on perceived merchandise value and patronage intentions. Journal of Marketing, 66, 120–141.

    Article  Google Scholar 

  • Bauer, R. A. (1960). Consumer behavior as risk taking. In R. S. Hancock (Ed.), Dynamic marketing for a changing world (pp. 389–398). Chicago: American Marketing Association.

    Google Scholar 

  • Berry, L. L., & Bendapudi, N. (2003). Clueing in customers. Harvard Business Review, 81, 100–106.

    Google Scholar 

  • Berry, L. L., Carbone, L. P., & Haeckel, S. H. (2002). Managing the total customer experience. MIT Sloan Management Review, 43, 85–89.

    Google Scholar 

  • Bitner, M. J. (1990). Evaluating service encounters: The effects of physical surroundings and employee responses. Journal of Marketing, 54, 69–82.

    Article  Google Scholar 

  • Bitner, M. J., Brown, S. W., & Mueter, M. L. (2000). Technology infusion in service encounters. Journal of the Academy of Marketing Science, 28, 138–149.

    Article  Google Scholar 

  • Boulding, W., Staelin, R., Kalra, A., & Zeithaml, V. A. (1993). A dynamic process model of service quality: From expectations to behavioral intentions. Journal of Marketing Research, 30, 7–27.

    Article  Google Scholar 

  • Brown, D. R., & Reich, C. M. (1971). Individual differences and adaptation-level theory. In M. H. Appley (Ed.), Adaptation level theory: A symposium (pp. 215–232). New York: Academic.

    Google Scholar 

  • Conchar, M. P., Zinkhan, G. M., Peters, C., & Olavarrrieta, S. (2004). An integrated framework for the conceptualization of consumers’ perceived-risk processing. Journal of the Academy of Marketing Science, 32, 418–436.

    Article  Google Scholar 

  • Cronin, J. J., & Taylor, S. A. (1992). Measuring service quality: A re-examination and extension. Journal of Marketing, 56, 55–68.

    Article  Google Scholar 

  • Dowling, G. R. (1986). Perceived risk: the concept and its measurement. Psychology and Marketing, 3, 193–210.

    Google Scholar 

  • Dowling, G. R., & Staelin, R. (1994). A model of perceived risk and intended risk-handling activity. Journal of Consumer Research, 21, 119–134.

    Article  Google Scholar 

  • Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behavior: An introduction to theory and research. New York: Addison-Wesley.

    Google Scholar 

  • Folkman, S. (1984). Personal process and stress and coping processes: A theoretical analysis. Journal of Personality and Social Psychology, 46, 839–852.

    Article  Google Scholar 

  • Gardial, S. F.,Clemeons, D. S., Woodruff, R. B., Schumann, D. W., & Burns, M. J. (1994). Comparing consumers’ recall of prepurchase and postpurchase product evaluation experiences. Journal of Consumer Research, 20, 548–560.

    Article  Google Scholar 

  • Gotlieb, J., Grewal, D., & Brown, S. W. (1994). Consumer satisfaction and perceived quality: Complementary or divergent constructs? Journal of Applied Psychology, 79, 875–885.

    Article  Google Scholar 

  • Greatorex, M., & Mitchell V. W. (1994). Modeling consumer risk reduction preferences from perceived loss data. Journal of Economic Psychology, 15, 669–685.

    Article  Google Scholar 

  • Grewal, D., Gotlieb, J., & Marmorstein, H. (1994). The moderating effects of message framing and source credibility on the price-perceived risk relationship. Journal of Consumer Research, 21, 145–153.

    Article  Google Scholar 

  • Groth, J. (1995). Important factors in the sale and pricing of services. Management Decisions, 33(7), 29–34.

    Article  Google Scholar 

  • Gummesson, E. (2004). Service provision calls for partners instead of parties. Journal of Marketing, 68, 20–21.

    Google Scholar 

  • Helson, H. (1964). Adaptation level theory. New York: Harper & Row.

    Google Scholar 

  • Hui, M. K., & Bateson, J. E. G. (1991). Perceived control and the effects of crowding and consumer choice on the service experience. Journal of Consumer Research, 18, 174–185.

    Article  Google Scholar 

  • Klein, C. T., & Helweg-Larsen, M. (2002). Perceived control and the optimistic bias: A meta-analytic review. Psychology and Health, 17(4), 437–446.

    Article  Google Scholar 

  • Langeard, E., Bateson, J. E. G., Lovelock, C. H., & Eiglier, P. (1981). Marketing of services: New insights from consumers and managers. Cambridge, MA: Marketing Science Institute.

    Google Scholar 

  • Langer, E. J., & Rodin, J. (1976). The effects of choice and enhanced personal responsibility for the aged: A field experiment in an institutional setting. Journal of Personality and Social Psychology, 34(2), 191–198.

    Article  Google Scholar 

  • Mitchell, V.-W. (1999). Consumer perceived risk: Conceptualizations and models. European Journal of Marketing, 33(1/2), 163–195.

    Google Scholar 

  • Mitchell, V.-W., & Boustani, P. (1994). A preliminary investigation into pre- and post-purchase risk perception and reduction. European Journal of Marketing, 28, 56–71.

    Article  Google Scholar 

  • Netemeyer, R. G., Burton, S., & Johnston, M. W. (1991). A comparison of two models for the prediction of volitional and goal-directed behaviors: A confirmatory analysis approach. Social Psychology Quarterly, 54, 87–100.

    Article  Google Scholar 

  • Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1991). Refinement and reassessment of the SERVQUAL scale. Journal of Retailing, 67, 420–450.

    Google Scholar 

  • Rust, R. T., Zeithaml, V. A., & Lemon, K. N. (2000). Driving customer equity. New York: Free.

    Google Scholar 

  • Slovic, P., Kraus, N. N., Lappe, H., Letzel, H., & Malmfors, T. (1989). Risk perception of prescription drugs: Report on a survey in Sweden. Pharmaceutical Medicine, 4, 43–65.

    Google Scholar 

  • Thompson, E. P., Chaiken, S., & Hazelwood, D. J. (1993). Need for cognitions and desire for control as moderator of extrinsic reward effects: A person x situation approach to the study of intrinsic motivation. Journal of Personality and Social Psychology, 64, 987–999.

    Article  Google Scholar 

  • Thompson, S. C. (1981). Will it hurt if I can control it? A complex answer to a simple question. Psychological Bulletin, 90(1), 89–101.

    Article  Google Scholar 

  • Voss, G., Parasuraman, A., & Grewal, D. (1998). The roles of price, performance, and expectations in determining satisfaction in service exchanges. Journal of Marketing, 62, 46–61.

    Article  Google Scholar 

  • Woodside, A. G., Frey, L. L., & Daly, R. T. (1989). Linking service quality, customer satisfaction and behavioral intentions. Journal of Health Care Marketing, 9, 5–17.

    Google Scholar 

  • Zeithaml, V. A., & Bitner, M. J. (2003). Services marketing: Integrating customer focus throughout the firm (3rd edition). New York: McGraw-Hill/Irwin.

    Google Scholar 

Download references

Acknowledgements

Dhruv Grewal and Michael Levy acknowledge the research support of Babson College. Gopalkrishnan R. Iyer acknowledges the support of the center for Services Marketing & Management at the Florida Atlantic University. The authors also acknowledge the helpful suggestions of Diana Grewal, Anne Roggeveen, the JAMS Editor, and Reviewers.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Michael Levy.

Additional information

Authors contributed equally to the research.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Grewal, D., Iyer, G.R., Gotlieb, J. et al. Developing a deeper understanding of post-purchase perceived risk and behavioral intentions in a service setting. J. of the Acad. Mark. Sci. 35, 250–258 (2007). https://doi.org/10.1007/s11747-007-0044-2

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11747-007-0044-2

Keywords

Navigation