The Use of Extrinsic Cues to Facilitate Product Adoption

Abstract

Two field experiments were conducted to explore the effects of varying levels of product warranty, manufacturer reputation, and price on consumers’ risk perceptions and affective responses to new product concepts. Data were collected from a consumer panel in a new product concept test format for a tire product and for a computerized exercise device. Results from structural equation analyses reveal the important role of warranties and other extrinsic cues in reducing consumers’ risk perceptions and enhancing their affective responses to innovative product concepts.