Will winning always encourage risk-taking? The effects of winning–losing perception on consumers’ risk preference

Purpose This research examines the effects of winning–losing perception, generated from success and failure results, on consumers’ risk preference. Design/methodology/approach Using different manipulations of success and failure and different measurements of risk preference tendency, the authors conducted five experiments to carry out the research. Findings Using different manipulations of success and failure and different measurements of risk preference tendency, five experiments were conducted to demonstrate that a clear success increases consumer’ sense of power, which in turn raises their subsequent risk preference; a clear failure, however, decreases consumers’ sense of power, which in turn reduces their subsequent risk preference. Furthermore, a close result can moderate this effect; that is, the difference between narrow-winners and narrow-losers’ risk preferences is weakened. Originality/value This study further enriches the research on the impact of winning–losing perception on individuals’ behavior and provides suggestions on how to use the results of online and offline competitions to carry out marketing activities.