Risk perceptions and risk attitudes among Chinese consumers: the toxic capsule crisis

Abstract

The toxic capsule crisis (TCC) shocked China in 2012, and seriously harmed consumer confidence. Based on a firsthand survey in 12 provinces with 850 observations, this paper examines Chinese consumers’ risk perceptions and risk attitudes about drugs after the TCC. The empirical results suggest that Chinese consumers’ risk perceptions (attributed likelihood of a drug safety accident occurrence) and risk attitudes (measured as level of concern about drug labeling) are weakly negatively correlated, but that risk perceptions are positively correlated with consumer concern about drug safety problems in general. Risk perception was higher among male consumers and those from rural areas, reporting a religious faith, of higher education, and with a family member who has experienced problems caused by drug safety problems. Those reporting a higher level of concern about drug safety issues, with a higher level of understanding of TCC, who reported less frequent physical examinations, and who searched for information after the TCC also had a higher level of risk perception. Being or having a family member who engaged in the health industry and being more satisfied with the government response to the TCC decreased risk perception. Regarding risk attitude, older consumers, those with a higher level of education and with a self-reported religious faith, and those less prepared including those who did not purchase health insurance, do not have health exams as frequently, and who do not take measures of protection and isolation when ill are more concerned about drug labeling information.