Abstract

The purpose of this study is to find out the effect of perceived risk on risk reduction strategy in the hotel business. Especially, this study focuses on risk reduction strategy vary depending on the type of perceived risk. And this study examines whether there is a difference in purchase intention by the interaction effects of perceived risk and risk reduction strategy. This researcher set up hypothesis referring to theoretical backgrounds and conducted a questionnaire for customers who have looked for hotel information. The findings are as follows. The first, perceived risk generally has a positive effect on the risk reduction strategy. The second, depending on the type of perceived risk, consumers choose other risk reduction strategy. Financial and physical risks have a positive effect on risk reduction strategies, such as seeking information directly and seeking purchasing experience. The time loss risk has a positive effect on the risk reduction strategy of pursuing low prices. And psychosocial risk has a positive effect on the risk reduction strategies, such as seeking higher prices or lower prices. The third, the main effects of risk reduction strategy on purchase intention are all significant. Also the main effects of perceived risk on purchase intention are significant except financial risk. And the interaction effects of perceived risk and risk reduction strategy on purchase intention are statistically significant except the interaction of physical risk and risk reduction strategy. These results suggest that it is useful to analyze the consumer's perceived risk and risk reduction strategy. And hotel companies will be able to develop more effective marketing strategies on the basis of this empirical results.

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