The effects of risk-reducing strategies on consumer perceived risk and on purchase likelihood: A modelling approach

Abstract

Purpose

Consumer perception of risk and its impacts on purchasing behaviour are critical aspects of food safety. Consumer risk management strategies influence, and respond to, the risk management strategies adopted by the food industry. This research, using poultry product as the focus, aims to identify the consumer risk-reducing strategies and their impact on perception of food safety-related risk and then on purchase behaviour.

Design/methodology/approach

By adopting a quantitative research paradigm with a quota sample of 200 respondents, a Structural Equation Modelling (SEM) model was built to assess the direct and indirect effects of strategies taken by consumers to reduce perceived risk and the consequences for purchase likelihood, utilising LISREL 8.30.

Findings

The research reveals brand, information and quality assurance as influential risk-reducing strategies to reduce consumer perception of food safety risk and subsequently to facilitate purchase likelihood during a period concerned about microbiological contamination in chicken meat.

Practical implications

The results provide guidance of both proactive and remedial actions that the food industry can follow and also help to evaluate the effectiveness of its marketing activities.

Originality/value

The research provides an insight in assisting government agencies and the food industry to develop appropriate food-related risk management strategies to serve the interests of both consumers and producers.

Citation

Yeung, R., Yee, W. and Morris, J. (2010), "The effects of risk-reducing strategies on consumer perceived risk and on purchase likelihood: A modelling approach", British Food Journal, Vol. 112 No. 3, pp. 306-322. https://doi.org/10.1108/00070701011029174