The Relationships among Buyersâ€™ Perceived Risk, Exhibitorsâ€™ Brand Equity, Purchase Postponement and Switching Intention-From the Perspectives of Perceived Risk Theory and Expectancy Theory

Chao-Chih Hung,Che-Huei Lin

doi:10.22610/imbr.v7i4.1165

Abstract

This study explores the effects of buyersâ€™ perceived risk on their purchase postponement and switching intention in an international industrial fair, as well as examines the moderating effect of exhibitorsâ€™ brand equity on the above relationships. This study uses the purposive sampling method to survey buyers of the famous International Woodworking Machine Fair in Hanover, Germany. Of the 200 surveys distributed, 105 valid questionnaires were returned, representing a response rate of 52.50%. Analytical results show that higher buyersâ€™ perceived risk is associated with buyersâ€™ higher purchase postponement, and stronger switching intention. Furthermore, when facing high-brand equity exhibitorsâ€™ products, if buyers perceive low risk of use, they are unlikely to delay purchase and switch suppliers; in contrast, if they perceive high risk of use, they are more likely to delay purchase and switch suppliers. Finally, when buyers face low-brand equity exhibitorsâ€™ products, if they perceive low risk of use, they will delay purchase and switch suppliers; in contrast, if they perceive high risk of use, they will tend not to delay purchase and switch suppliers.

Highlights

Exhibitions have become increasingly important to companies
Previous researches on exhibition mostly dealt with trade show performance (e.g., Dekimpe, Francois, Gopalakrishna, Lilien, & Van den Bulte, 1997; Gopalakrishna & Lilien, 1995; Gopalakrishna, Lilien, Williams, & Sequeira 1995; Hansen, 2004; Hung, Lee, & Zhuang, 2015; Kerin & Cron, 1987; Lee & Kim, 2008; Lee, Lee, & Yoon, 2013; Li, 2006, 2007; Seringhaus & Rosson, 2001; Tanner, 2002), but none addressed the negative issues arising from trade fairs
While the above studies focus on the perspectives of exhibitors or organizers, this study examines the effect of buyers’ perceived risk on their purchase postponement and switching intention, and examines moderating role of brand equity from the standpoint of visitors

Summary

Introduction

In related studies, Kirchgeorg, Jung, & Klante (2010) noted that an increasing number of exhibitors are seeking the conditions to ensure future success, and exhibitions are a major tool for companies to achieve sales objectives and contact with buyers (Blythe, 2010). If exhibitors can take advantage of each trade fair opportunity and dedicate toward marketing their own brands, their orders will increase consistently and a small company may perhaps transform to become a large company. If buyers purchased an unsuitable machine prior to the fair, they could be trying to find a replacement product at the fair. As a result, they may choose to switch supplier

Methods

Discussion

Conclusion