Consumer-perceived risk is typically captured along six dimensions, namely, physical risk, financial risk, performance risk, time risk, social risk and psychological risk. These are considered generic risk dimensions, relevant in most buying situations. In addition to these, context-specific risk dimensions (e.g security risk in online buying) have been included in several studies. This exploratory research aims to develop measurement scales for one such risk dimension termed as “obsolescence risk”, in the context of purchase of high-technology products by business buyers. High-technology products are characterised by state-of-the-art development and have typically short and volatile lives. For the consumers, high technology is synonymous with high risk of obsolescence. Hence, studies that attempt to capture consumer risk for high-technology products need to necessarily incorporate the impact of obsolescence risk. However, while scales to measure generic risk dimensions exist, there is none to capture obsolescence risk.
In this study, the scales were developed based on data collected on perceptions about negative consequences of technological obsolescence from business buyers. The data were subjected to factor analysis that grouped the data under six factors, which was then reduced to four statements. The data reliability was tested using Cronbach's alpha and the validity was established through convergent and discriminant validities. This study contributes to the existing body of risk research by developing scales that can be used in studies that warrant measurement of obsolescence risk. Though these scales may not be appropriate for products that are not high technology and in situations outside business buying, the study provides certain directions to researchers wanting to develop measurement scales for context-specific risk dimensions.
Perceived risk, High-technology products, Business buying, Obsolescence risk
