perceived risk



Consumer's level of uncertainty regarding the outcome of a purchase decision, specially in case of high priced item such as a car, or a complex item like a computer. Consumers attempt to reduce their anxiety by collecting more information and by seeking the recommendations of a peer group or an entity (person or consumer advocacy group) considered an expert on the subject matter. Manufacturers and marketers try to reduce this risk with reassuring guaranties, by obtaining the backing or recognized groups or opinion leaders, or by hiring a well known and respected spokesperson.

Use perceived risk in a sentence

Related Videos

Have a question about perceived risk? Ask for help in the
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z