KOREASCHOLAR

Existing studies of Japanese consumers have emphasized the importance of collectivism and risk aversion in Japanese culture. In this paper we examine the relationship between these constructs in new product adoption decisions that involve brand switching. We argue that, for Japanese consumers, the perceived emotional risk of adoption is related to (1) the degree to which a consumer identifies with the brand of his or her current product and (2) the perceived performance, financial, and social risks of switching to an alternative product. We further hypothesize that perceived social risk is positively related to brand identification, perceived performance risk, and perceived financial risk. Finally, we hypothesize that financial risk is positively related to performance risk.
We test our hypotheses using data collected in Japan in June 2015. Questionnaire items were adapted from existing, well-validated scales. The Japanese version of the questionnaire was developed by using the standard double translation procedure. The Japanese version of the questionnaire was administered by a marketing research firm to a national panel of respondents stratified by age and gender. The resulting sample consisted of 518 iPad owners from across Japan, of whom approximately half were men. Within each gender category, approximately half of the respondents intended to purchase a new tablet within the next 12 months.
Following established SEM procedures, we began by estimating a confirmatory factory analysis model, after which we estimated a structural equation model. In each case, the estimated model satisfied standard evaluation criteria. In general, our findings provide support for the hypothesized model. First, Perceived Performance Risk was positively related with Financial Risk, Social Risk, and Emotional Risk. Second, Financial Risk was positively related with Social Risk. Third, Social Risk was positively related with Emotional Risk. Fourth, Brand Identification was positively related with Social Risk and Emotional Risk. The one hypothesized linkage that was not supported was the relationship between Financial Risk and Emotional Risk.
A comparison of coefficient magnitudes reveals several important findings. First, in the Social Risk equation, the coefficient of Performance Risk is significantly larger than the Brand Identification coefficient. Second, within the Emotional Risk equation, the coefficient of Performance Risk is significantly larger than the coefficients of Brand Identification and Financial Risk. Similarly, the coefficient of Social Risk is also significantly larger than the coefficients of Financial Risk and Social Risk.

• Sumita Sarma(University of Missouri-Kansas City, USA)
• Mark E. Parry(University of Missouri-Kansas City, USA)
• Xiaoming Yang(University of Missouri-Kansas City, USA)