Palestinian Consumer’s Intention to Recommend a Car Brand and its Relationship to Perceived Risks when Buying a Car

This study looks at what kind of strategies are more effective to reduce the perceived degree of risk, through understanding the correlation between that strategy and type of risks which have an impact on the recommendation intention of the consumer and thus on the final purchase decisions of the buyers. The empirical work involved observing behavior of car owners in Palestine through data gathered via a survey utilizing a questionnaire that measures various types of perceived risks associated with purchase of a car, and what risk-reduction strategies are employed by consumers in minimization of such risks, and what effect these have on the recommendation intention of the car owners regarding their car. The results show that the Palestinian consumer depends heavily on spoken word brand name, pricing, and quality strategies to reduce the degree of perceived social and time risks but financial, functional, and physical risks are not reduced by such strategies with the exception of brand name and its reduction of physical risk. Keywords: Recommendation Intention, Perceived Degree of Risk, Consumer Behavior