Purpose - This exploratory study aimed to examine the relationship
between perceived risk, risk-reduction strategies (RRS), and the
occasion-based purchase of wine, a product widely regarded as
representing a complex buying situation for consumers in a retail
setting. Design/methodology/approach - Data was collected in a specialty
wine store in Adelaide, Australia using a self-administered
questionnaire. A 22-item Perceived Risk Scale (PRS) was developed and
operationalised in this study returning a Cronbach alpha coefficient of
0.717. Findings - The highest perceived risk dimension, namely financial
risk, did not differ between risk segments, while the high perceived
risk segment observed more social risk than the low perceived risk
segment. The high-perceived risk segment also observed more
psychological risk. Information seeking was the most important RRS used
across seven different wine consumption occasions. The decreasing order
of importance in consumption occasions had an inverse relationship to
the closeness of the relationship the wine consumers had with those with
whom they may consume the wine they had purchased. Research
limitations/implications - Marketers and managers have the opportunity
to target consumers mindful of their specific perceived risks, and help
reduce these uncertainties through the use of individualised RRS
management focused on consumers' occasion-based wine purchases.
Originality/value - This study is of value to academic researchers and
wine industry practitioners alike. It contributes to the knowledge base
by developing a new Perceived Risk Scale (PRS) to investigate the
relationship perceived risk has on the types of RRS wine consumers use
when purchasing wine for various consumption occasions.