Perceived risk and demographic factors on consumers’ choice in times of crisis
DOI:
https://doi.org/10.51359/2526-7884.2023.256550Keywords:
COVID-19, consumer behaviors, consumers’ choice, consumer demographics, perceived risk, predictive analytics, crisis communication strategiesAbstract
In order to develop effective communication strategies during crises, this study explores how psychological factors (e.g., perceived risk) and demographic variables affect consumers’ choice of consumption channels during the business reopening period amid the COVID-19 pandemic by analyzing survey data collected from 1,033 U.S. adults with predictive analytics. There are a number of important findings. First, the results of cluster analysis suggested that the U.S. consumers can be categorized into two clusters, high perceived risk and high concern group, and low perceived risk and low concern group. Cluster membership is associated with gender, ethnicity, and household income. Second, the results of decision tree analysis showed that perceived risk for food delivery and take out is the most important factor that predicts consumers’ ordering food delivery and takeout behaviors. Third, the results of decision tree analysis suggested that perceived risk for instore consumption activities is the most important predictor for predicting consumers’ in-store consumption activities, such as visiting a non-grocery retail store and going out to eat. The results of this study support consumer demographic theory and consumer perceived risk theory. Practical suggestions about how to minimize perceived risks with effective crisis communication strategies are provided.
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