Impact of Perceived Risk on Consumer Purchase Intention towards Luxury Brands in Case of Pandemic: The Moderating Role of Fear

Abstract

This paper explores the relationship between perceived risk, fear, and consumer purchase intention towards luxury brands in the case of COVID-19. An online survey was conducted on 750 consumers of luxury brands in Pakistan with a purposive sampling technique. The validity of the scale and the connection between the research model were identified by exploratory factor analysis (EFA). The study uncovered how COVID-19 wreaks havoc on luxury brands in Pakistan. It was found that perceived risk has a negative and significant effect on consumer purchase intention towards luxury brands in the case of COVID-19. Moreover, fear negatively moderating the relationship between perceived risk and consumer purchase intention towards luxury brands in the case of COVID-19. As fear playing a dominant role in the reduction of purchase intention in the case of an outbreak, a brand's industry needs to prepare some strategies in advance that control the negative emotions of consumers for shopping. Considering the uniqueness of the study, it is based on two theories include Psychometric Paradigm and Expectancy-Value model that explains how perceived risk changes the consumer purchase intention during an outbreak. Keywords: COVID-19, Perceived Risk, Fear, Consumer Purchase Intention, Luxury Brands.