Psychological Risk Aggregation: Selling Products of Uncertain Qualities With Probabilistic Promotions

Mengze Shi, University of Toronto
Alison Jing Xu, University of Toronto, Canada
When companies market products of uncertain qualities with probabilistic promotions, consumers aggregate two sources of risks and evaluate them jointly. We demonstrate that product risk and promotion risk interact in determining joint risk perception, which can be amplified when consumers perceive salient contrasts between the sizes of two risks.
[ to cite ]:
Mengze Shi and Alison Jing Xu (2013) ,"Psychological Risk Aggregation: Selling Products of Uncertain Qualities With Probabilistic Promotions", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.