The Effects of Demographic Variables on Measuring Perceived Risk

Abstract

Despite the importance of demographic variables which affect consumers’ behaviour and the 30 years tradition of perceived risk research, the effect which demographic variables have on risk perception and reduction has not been consistently identified. In a survey of 180 purchasers, the effect of three demographic variables; age, gender, and social class, on 10 risk statements and 16 risk reducing strategies was measured. Age significantly affected risk perception and reduction; strategies became more useful as age increased. Gender proved to be the most important demographic variable. Nearly all the risks and risk reducing strategies were significantly less important and less useful for the males than females. Social class had a less marked effect than gender, but still produced significant differences although there was no consistent effect. Overall, the differences were significant enough to allow the rejection of the null hypothesis that demographic variables would have no effect on risk perception and reduction. Implications in terms of perceived risk measurement and possible use in segmentation are discussed.