Attitude In Consumer Behaviour

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Customer Attitude and Risk. Perceived risk in the consumer behavior literature has been described as having two dimensions, perceived negative consequences and the perceived likelihood that these negative outcomes will actually happen (Gronhaug, Hem, & Lines, 2002). Literature has indicated that consumers rely on a well-known brand as a tool relief the risk of their decision because strong brands act as risk relievers which aids in making the decision to try the new product (Hem, de Chermantony, & Iversen, 2003). The two types of risk identified by researchers are product category risk and product risk. Product category risk is defined as “the person’s perception of the riskiness of buying an average product’ in the product class’, while the…show more content…
Consumers, being generally risk adverse, use supportive information, such as a brand name, to reduce this uncertainty” (Taylor & Bearden , 2003) When consumers get to evaluate the extension, both types of risk occur, first the consumers are uncertain about the new product category and second, are uncertain about the performance of the product within this product class. Hence, the extension undertaken by a well-known brand that goes into a product category perceived as risky can serve as a credible signal of the unseen quality of the new product, and this influence the acceptance and customer’s positive evaluation towards it (Gronhaug, Hem, & Lines,…show more content…
The true value of brand reputation evolves from the positive conations developed in the consumers’ minds since they tend to lean on brand reputation especially when evaluating alternative brands, thus brand reputation delivers very important information (Gronhaug, Hem, & Lines, 2002). It is suggested by (Chaudhuri & Hoibrook, 2001) that a firm’s reputation acts as an indicator of whether the firm is successful or not, if consumers perceive the firm as successful, this will enhance their chances in being perceived as an organization that provides high quality products. Positive reputation of brands plays a vital role in the market place as it eases entering new markets and increases consumer attraction towards the brand (Gronhaug, Hem, & Lines, 2002). As explained by (Sreejesh, 2011), the success of brand extensions is directly related to the reputation of the parent brand. Strong brand reputation delivers to customer the ability of the firm to reproduce products of the same quality again and again. The important element that helps firms maintain reputation is introducing high quality products through its extensions. In short, a firm’s reputation is the result of all previous attitudes perceived about the firm’s behaviors, summed up together (Milewicz & Herbig,
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