Customer Perceived Risks and the Choice of Mobile Phone Brand in Ghana

Abstract

Purpose – The purpose of the study is to develop, measure and empirically validate the contribution of performance risk, social risk, financial risk and psychological risk to the customer choice of mobile phone. Design/methodology/approach – Data were collected from 267 mobile phone users applying the convenience sampling method. The study finds that performance risk, social risk, financial risk, and psychological risk relate to customer choice. Further study results demonstrate that all the predictor variables after controlling for experience and means of acquisition are statistically significant in predicting customer choice of mobile phone brand. However, performance risk showed the highest effects on customer choice. The study contributes to the development of a multi-dimensional scale for customer perceived risk and choice of mobile phone in the Ghanaian context. The study provides firms in the mobile phone industry with a deeper understanding of how the performance, financial, social and psychological factors are relevant in the development of marketing programmes in the mobile phone industry.