Really-new services and perceived risk: the effect of regulatory focus Online publication date: Fri, 06-Oct-2023
by Selen Savas-Hall; Paul S. Koku; Justin R. Hall
International Journal of Technology Marketing (IJTMKT), Vol. 17, No. 4, 2023
Abstract: This study examines the effect of regulatory focus on the relationship between various types of risk and attitudes toward really-new services (RNS). We argue that promotion-focused consumers may differ from prevention-focused consumers in terms of taking the risk to adopt RNS. The data of the study was collected through Amazon Turk and analysed using structural equation modelling with multigroup analysis. The results show that manipulation of self-regulation creates a difference. While promotion-focus attenuates the effects of performance risk, psychological risk, and overall risk on the attitudes toward RNS, prevention-focus intensifies the effects of the same risks on the attitudes. This study shows that regulatory focus can be an effective segmentation tool in new service promotions, especially app- and web-based services, most of which are participants of the sharing economy. Framing communication by inducing promotion focus can influence the attitudes of consumers and encourage them to adopt RNS.
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