The effects of risk aversion and uncertainty avoidance on information search and brand preference: evidence from the Chinese dairy market

For decades, research and practice have recognised the significant effects of risk aversion and uncertainty avoidance on consumer behaviour. These two concepts are often used interchangeably and studied as an integrated factor in marketing literature. Despite the relationship between risk aversion and uncertainty avoidance, it is necessary to differentiate between the two concepts to address the inaccuracy in definition and application. This research investigates Chinese dairy consumers who experienced one of the most significant food safety crises in recent years. Based on a structural equation modelling analysis, this study reveals that risk aversion and uncertainty avoidance have different effects on consumers' information search, perceived quality and brand loyalty. Therefore, future research should recognise the different roles of risk aversion and uncertainty avoidance in consumer behaviour. Practitioners should target risk-averse and uncertainty-avoiding consumers as distinct groups, based on different marketing communication campaigns.