IUP Publications Online
Home About IUP Magazines Journals Books Archives
     
A Guided Tour | Recommend | Links | Subscriber Services | Feedback | Subscribe Online
 
The IUP Journal of Marketing Management
Reducing Perceived Risk in Purchase of Uncertified Used Cars: Contributory Factors
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 
 

A growing middle class, an upsurge in disposable income levels and satisfactory availability of financing options have contributed to the enormous demand for used cars in India. However, the used car market in India is highly unorganized, operating with a large number of uncertified used car dealers, which leads to a high level of perceived risk among prospects. It is an arduous task for a prospect to transmute into a customer unless he/she feels that the risk perception is low. This study tries to ascertain the various factors that are instrumental in facilitating the reduction of perceived risk while purchasing uncertified used cars. Adopting convenience sampling, data was collected from a sample of 419 respondents, using a self-administered questionnaire. The responses were analyzed using SPSS package 20.0, by adopting Principal Component Analysis, followed by Regression Analysis. The results portrayed prominent factors impacting risk perception. A significant correlation between the same and predictor variables was also revealed.

 
 
 

Given the fierce competitive scenario in the market, understanding the needs and wants of the consumer has become the prime focus of existing firms. Marketers have recognized that attaining the full profit potential from each consumer is the key to outperform competition. Subsequently, developing a successful relationship with consumer is also vital which requires: consumer value creation, ensuring consumer satisfaction and creating a framework that safeguards customer retention. The concept of consumer behavior deals with the manner in which individuals or groups select, purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and desires. Persistent buying decisions are made by consumers relating to what products/services to buy and where to buy from; hence, it is crucial for organizations and marketers to understand these decisions in order to develop effective marketing strategies. Consumers have an amount of persistent perceptions that are particularly catalytic in the process of consumer decision making.

 
 
 

Marketing Management, Perceived Risk, Dimensions of Perceived Risk,Used Cars and Buyer’s Perception ,Regression Analysis.