Perceived risk factors by personal computer users in the pre-purchase phase ; A case of users in different income groups in Nakuru municipality, Kenya

Abstract

Personal computer ownership is still low despite significant progress made in personal computer development and sensitization on the benefits derived from computer usage. Previous Work on risk management has established several inhibiting factors and has developed several risk reduction strategies. However, personal computer buying still remains a risky undertaking where decisions must be made notwithstanding the complexity of the product. This study investigated the perceived risks of personal computer buying and posited that perceived risk factors significantly differ among the income groups and that overall perceived risk levels among the income groups are significantly different in the pre — purchase phase of personal computers. Purposive sampling was used to select sixty respondents who were then grouped along income groups. The study used a questionnaire to collect primary data. In analyzing the collected data descriptive statistics was used to carry out preliminary investigations. An empirical investigation revealed that there was a significant difference in the overall perceived risk levels among the various income groups and that of the risk factors under study, only financial and physical risk factors showed significant difference among the various income groups. Time, functional, psychological, and social risk factors were perceived to be the same among the various income groups. There is need therefore to use financial and physical risk factors as a basis for designing a marketing mix unique to each income group.