Customer takes into account many factors in the purchase decision for a second-hand car. To name a few, economic consideration, ease of driving, security and safety features, ease of parking, and total value. Although price is the top priority among them, concerns about concealed accident record by unscrupulous ex-owner, stolen car, car underwent flood damage aggravate consumers’ perceived risk in the process of buying a second-hand car. o unscrupulous operators, bring about accident car, flood- damaged cars and stolen cars and other news often heard. It increases consumer's perceived risk for purchase used car. Based on Monroe and Krishnan’s “Perceived Value Model” this study incorporates another factor “perceived risk” into the model to investigate its impact on customer decision under the context of information asymmetry without having the certificate of good-shape for the second-hand car, and how consumer involvement moderates the relationship between the perceived risk and purchase intention.
This study surveys car users in the Taiwan including north, central, and southern regions and analyzes data via Structure Equation Modeling by AMOS 7.0. The result demonstrates that price has a direct negative effect on purchase intention, and customer involvement does not moderate the association between perceived risk and purchase intention.