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2.4.1. Knowledge and Intangibility<br />

In Goutaland’s empirical study (1999), subjective knowledge had a negative influence on<br />

both difficulty of evaluation and perceived risk. As a moderator, subjective knowledge interacted<br />

with physical intangibility (mental intangibility) to increase (decrease) perceived risk. However,<br />

the expected moderating effect of knowledge on the relationship between intangibility and<br />

difficulty of evaluation was not found. These somewhat inconsistent findings necessitate further<br />

testing of the relationships between knowledge, intangibility, risk, and difficulty of evaluation.<br />

Moreover, the moderating effect of knowledge will be retested from the brand and generic<br />

category perspectives. Since brands reduce perceived risk and difficulty of evaluation, as<br />

explained in earlier sections, the moderating effect of knowledge will be less in a brand context<br />

than in a generic one. We thus hypothesize that:<br />

H8: Knowledge moderates the relationships between the three dimensions of intangibility<br />

(i.e., generality, physical intangibility and mentally intangibility) and a) difficulty of<br />

evaluation and b) perceived risk.<br />

H9: The more knowledgeable a consumer perceives himself to be regarding a<br />

product/service a) the less difficult it is to evaluate it and b) the less risky it is perceived.<br />

H10: The moderating effects of knowledge on a) difficulty of evaluation and b) perceived<br />

risk at the generic level are greater than those at the brand level.<br />

2.5. Involvement<br />

Zaichkowsky (1985) stated that involvement had been diversely defined and measured<br />

due to its different applications. In fact, involvement, applied under various objectives, led to<br />

different responses for products (Howard and Sheth 1969), for advertisements (Krugman 1977),<br />

and for purchase decisions (Clarke and Belk 1978). For the purpose of developing a scale,<br />

Zaichkowsky defined involvement as “a person’s perceived relevance of the object based on<br />

inherent needs, <strong>value</strong>s, and interests” (1985, p. 342). Based on the definition proposed,<br />

Zaichkowsky (1985) empirically developed the personal involvement inventory – a scale used to<br />

measure one’s product involvement. Other researchers argued that the construct was<br />

multidimensional rather than unidimensional. According to Laurent and Kapferer (1985), there<br />

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