Pascal Bühler

Abstract Purpose – The purpose of this paper is to enhance the understanding of consumer empowerment in the relationship between consumers and service providers. It draws on self-efficacy theory to conceptualize consumer empowerment and explain the impact on perceived performance risk in insurance decision making. Design/methodology/approach – This study employs data collected from an online survey involving 487 consumers in Switzerland, who recently decided on an insurance service. A structural equation model quantifies both the psychological effects on consumers’ perception of insurance services and behavioral effects on their decision-making process. Findings – Perceived consumer empowerment is conceptualized by perceived self-efficacy and perceived controllability. Both have a significant impact on perceived performance risk, while the former is partially mediated by the preference to delegate the decision to a surrogate. Moreover, customers’ involvement in the purchase process moderates both the direct and indirect effect of perceived self-efficacy on perceived performance risk. Research limitations/implications – The results are based on consumers’ perceptions from a single country. Furthermore, consumers’ perceptions were surveyed with a time lag after the decision-making process. To increase rigor, perceptions should be collected during decision making. Practical implications – Results show that consumer empowerment can be employed as a risk reduction strategy. Consumers with self-efficacy and controllability beliefs perceive significantly less performance risk; however, practitioners should consider that consumers are also motivated to make decisions independently rather than delegating their decisions. Furthermore, consumer empowerment depends on consumer will. For largely indifferent consumers, empowerment does not affect risk or decision delegation preference. Originality/value – The study is among the few empirical works to examine the effects of consumer empowerment on the consumer-service provider relationship on an individual level. Furthermore, applying consumer empowerment in relationship marketing implies a shift in research focus to the question of how consumers construe decision-making situations rather than objectively measuring the state of consumer relationship.

‘Why not?' - is the most frequently posed question in a multioptional environment. It triggers changes in established societies by questioning traditional rules and values. From an individual viewpoint options create the basis for self-actualisation[1]. Social systems that were formative in the past, such as hierarchy, church, state and family, have lost their influence ever since. Routines, social values and norms no longer define our actions; instead, they are triggered by personal preferences[2]. With the end of obligations, a space has opened for the individualisation in society. The result is that we are not only able, but indeed forced, to take our life into our own hands. A son will no longer simply follow his father's occupation, nor will a girl's life be defined by marriage, an employee will for example also be able to advance through a company step by step by finally achieving a patriarchal position at the top. Multi-optionalisation increasingly defines every area of life: education, work, consumption, ownership - even family and personal relationships.