Quality, value, satisfaction, trust, a

and mentally intangible a product/service is the more difficult it will be for consumers to
evaluate it.
Previous research suggests the more intangible a product/service is, the greater the
perceived risk (Mitchell and Greatorex 1993; Murray and Schlacter 1990; Zeithaml 1981). While
empirically demonstrated, this finding is solely based on the physical intangibility construct. In
Goutaland’s study (1999) mental intangibility was positively related to perceived risk while
physical intangibility and generality were not. Compared to mental intangibility, physical
intangibility and generality appeared to contribute very little in stimulating perceived risk,
especially in the context of a three-dimensional intangibility construct. While past literature
supports the idea that intangibility results in greater risk perceptions, the links between the
multidimensional intangibility and risk constructs necessitate further exploration. Based on
previous findings, the following hypotheses ensue:
H4: The more mentally intangible a product/service is, a) the more difficult it is to evaluate
and b) the more risky it is perceived.
H5: The more general a product/service is, a) the more difficult it is to evaluate and b) the
more risky it is perceived.
H6: The more physically intangible a product/service is, a) the more difficult it is to evaluate
and b) the more risky it is perceived.
2.3.4. Difficulty of Evaluation and Perceived Risk at the Brand and Product-Category Levels
Brands facilitate consumer decision making particularly by improving decision-making
efficiency (Alba and Hutchinson 1987; Johnson and Russo 1984) and reducing perceived risk
(Wernerfelt 1988). Umbrella branding also eliminates consumers’ perceived risks, difficulty of
evaluation, and product uncertainty (Erdem 1998). Branding plays an especially important role
in the service arena by enabling customers to tangibilize and visualize the service and thereby
reduce perceived social and monetary risks (Berry 2000). While Berry did not empirically test
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