Understanding Consumers’ Behaviour: Can Perceived Risk Theory Help?

Abstract

Aims to highlight the use of Perceived Risk Theory in understanding and influencing consumers′ behaviour. Recent evidence from numerous food scares and product recalls have demonstrated the power of perceived risk on consumption patterns. Argues that perceived risk is so important to consumers′ thinking that all managers should at least be aware of its existence. Describes how uncertainty and risk affect the consumer decision‐making process and gives some indications as to how the theory might be used by organizations better to manage their communications mix.