A higher-order model of risk propensity

This study extends the paradigm of risk propensity and empirically investigates a higher-order risk propensity model. Past marketing research on risk propensity offers conflicting conceptualization and theorization. Additionally, past research viewed risk propensity as a first-order construct. The present study extends consumersʹ risk propensity concept, proposing and empirically assessing a higher-order model with three first-order factors, namely, risk risk-taking attitude, perceived risk, and price consciousness. In this view, the three fist-order factors are shaped by the individualʹs inherent risk propensity.