Michael Greatorex

Risk Reducing Strategies Used in the Purchase of Wine in the UK

This article considers whether or not perceived risk is hindering the growth of wine consumption in countries such as the UK. An examination is made of the applicability of the theory of perceived risk to the buying behaviour of UK wine consumers. Empirical results show how consumers reduce the risks they perceive and the implications for marketing are discussed.

Consumer Perceived Risk in the UK Food Market

The theory of perceived risk has been examined in many consumer product areas but nowhere is it more applicable than in the purchase of food. Recent food scares, which have greatly increased consumers′ perceived risk and decreased demand, have been testament to its power. The numerous food scares, e.g. apple, tuna fish, babyfood and salmonella in eggs, which have taken place over the past year in the UK, are discussed and the results of a pilot study examining eight food products: restaurant meals, wine, sausages, fast food, tinned pilchards, apples, instant coffee and chocolate are reported. The order of perceived risks in purchase was the same as above, with a restaurant meal being the most risky. The most useful risk‐reducing strategy was brand loyalty, followed by reading consumer guides and then reading product information. The least useful were the use of special offers and celebrity endorsement. Companies and academics should realise the potential importance of this concept in consumer behaviour re...

Assessment of potential retail segmentation variables An approach based on a subjective MCI resource allocation model

Abstract The application of a multiplicative competitive interaction (MCI) resource allocation model to assess potential segmentation variables in terms of their capacity to homogenise consumers’ patronage preferences is proposed. The method consists of grouping the potential customers by the variable in question, determining the shopping profile of each resulting segment, and comparing the results to identify insightful relationships between the variable and the shoppers’ retail selection criteria. An empirical test of the procedure in the context of the grocery retail market is subsequently presented and confirms the importance of evaluating easy-measurable demographic and socioeconomic variables as orientative indicators of shopping behaviour.

A risk analysis of industrial buyers: The case of mid‐range computers

One of the most problematic and risky purchases that an organization has to make is which computer system to buy. The rapid technological changes within the computer market further increase the high risk already perceived as the result of the high price tag and the far reaching organizational consequences of such a purchase. An examination of this purchase situation using a perceived risk framework would highlight the risks involved and how those risks can be reduced. A questionnaire survey of DEC computer purchasers showed that personal risks were as important as company risks to the respondents, and that the two underlying factors seemed to be psycho‐social risk and personal financial risk. In addition, the probability and seriousness components of all the risk statements were significantly correlated. The most useful strategies to reduce these risks were to obtain a warranty or guarantee and to see the product in operation before purchasing. Several underlying factors were discernible from the risk rel...