| Line | Much research has been devoted to investigating |
| what motivates consumers to try new products. | |
| Previous consumer research suggests that both the | |
| price of a new product and the way it is advertised | |
| (5) | affect consumers perceptions of the products |
| performance risk (the possibility that the product will | |
| not function as consumers expect and/or will not | |
| provide the desired benefits). Some of this research | |
| has concluded that a relatively high price will reduce | |
| (10) | a consumers perception of the performance risk |
| associated with purchasing a particular product, | |
| while other studies have reported that price has little | |
| or no effect on perceived performance risk. These | |
| conflicting findings may simply be due to the nature | |
| (15) | of product advertisements: a recent study indicates |
| that the presentation of an advertised message has a | |
| marked effect on the relationship between price and | |
| perceived performance risk. | |
| Researchers have identified consumers perception | |
| (20) | of the credibility of the source of an advertised |
| message—i.e., the manufacturer—as another factor | |
| affecting perceived performance risk: one study | |
| found that the greater the source credibility, the lower | |
| the consumers perception of the risk of purchasing | |
| (25) | an advertised new product. However, past research |
| suggests that the relationship between source | |
| credibility and perceived performance risk may be | |
| more complex: source credibility may interact with | |
| price in a subtle way to affect consumers judgments | |
| (30) | of the performance risk associated with an advertised |
| product. |
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