How intangibility affects perceived risk: the moderating role of knowledge and involvement

Michel Laroche (Royal Bank Distinguished Professor of Marketing, John Molson School of Business, Concordia University, Montreal, Canada)
Jasmin Bergeron (University of Quebec, Montreal, Canada)
Christine Goutaland (John Molson School of Business, Concordia University, Montreal, Canada)

Journal of Services Marketing

ISSN: 0887-6045

Publication date: 1 April 2003

Abstract

The marketing literature suggests that product intangibility is positively associated with perceived risk and the intangibility construct encompasses three dimensions: physical intangibility, mental intangibility, and generality. The purpose of this research is to test which dimension of the intangibility construct is the most correlated with perceived risk. A survey was conducted and structural equation modeling analyses were used to test the proposed model. Results show that the mental dimension of intangibility accounts for more variance in the perceived risk construct than the other two dimensions, even when knowledge and involvement are included as moderators. Hence, the challenge for marketers might not be so much to reduce risk by physically tangibilizing goods and services, as has been advised for the past two decades, as rather to mentally tangibilize their offerings.

Keywords

Citation

Laroche, M., Bergeron, J. and Goutaland, C. (2003), "How intangibility affects perceived risk: the moderating role of knowledge and involvement", Journal of Services Marketing, Vol. 17 No. 2, pp. 122-140. https://doi.org/10.1108/08876040310467907

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Publisher

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MCB UP Ltd

Copyright © 2003, MCB UP Limited

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