Perceived risk is that level of risk a consumer believes exists regarding the purchase of a specific product from a specific retailer, whether or not that belief is factually correct.
In order to make a sale, you must overcome the customer's perceived risk. The more important the purchase is to the customer, the greater the perceived risk. Therefore, if a customer is considering buying sweet corn for dinner tonight, the perceived risk is relatively low. If he or she is buying corn because the boss is coming over for dinner, the perceived risk goes up. Perceived risks are also greater if the customer has not dealt with you as a retailer before. New or unbranded items, like produce, also raise perceived risk.
As the cost of an item goes up, so does the perceived risk. Being on a tight budget, having little experience in purchasing the item and having many alternatives to chose from all raise perceived risk.
There are six types of perceived risk:
Functional - Will the product perform as I expect? If the customer is buying sweet corn, this means, "Will this corn be as good as what I remember from last year or what I had last week?" If the customer is buying petunias, the risk is, "Will they make my garden look the way I want it to look?"
Physical - Can the product hurt me, my children or my pets? The use of pesticides in the production of food crops is frequently the concern here, but ornamentals that bear poisonous fruit can also be a concern.
Social - What will my peers think? If customers are buying sweet corn to eat in the privacy of their home, the risk here is low. If they buy petunias and plant them in the front yard and petunias are socially out this year, it's like having a big sign in your yard for five months saying, "geek lives here".
Psychological - Am I doing the right thing? This can be a strong motivator in plant sales for the environ-mentally concerned or an impossible obstacle for the truly paranoid.
Financial - Can I afford the purchase? This is not a major problem for most people buying sweet corn or petunias. It is a major obstacle for customers consider-ing a specimen plant or flowering trees that may cost $60 to $100.
Time - How much time and effort may I expend to make this purchase? This may be the greatest perceived risk for the plant and produce retailer to overcome. Picture your potential customer in their car thinking, "Do I want to pull into that crowded parking lot? Do I want to stand in that line for a dozen ears of corn?" This is scary! Many of the stands I visit fail to overcome this perceived risk. Their potential customers drive by.
What do you do to overcome perceived risk? You encounter examples every day. Why is a new car guaranteed for three years or 36,000 miles? This guarantee helps overcome the customer's functional perceived risk. Why does the MacDonald's sign say billions and billions sold? It reassures the customers that the food will taste like they expect it to, it won't hurt them and it's socially acceptable. The customer feels that he or she must be doing the right thing, because everyone else is doing it, too. Why do super-markets have express check outs? These special facilities make the customer think that the time risk is low.
In our roadside stands and garden centers, we can guarantee produce quality or the survival of costly perennials. We can reassure the customer our produce is fresh and pesticide free (if it is) or picked today. We can give personal endorsements, like a sign that says "Sweet Corn-Best of the Season" or "Beefsteak Tomatoes-Bill's Favorite". We can display information about the nutritional value of fruits and vegetables or the environmental value of planting a tree or flowers. Most of all, we can watch for the hesitant customers and give them an encouraging word. After all, they are only concerned about perceived risks.
from: Anum Harrison
News broadcasts Advertising Product placement. Risk Aversion
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A risk is the ability to speed in a car. A risk behavior is driving at fast speeds. A risk is that drug companies manufacture a variety of medications to treat or cure illness and disease. A risk behavior is taking medication the doctor did not prescribe for you, or taking more than prescribed, or taking the medication for recreational use, e.g. to 'get high' or 'get stoned'. A risk is knowing that STDs exist and are transmitted through oral or vaginal sex. A risk behavior is 'sleeping around' and not using condoms for protection. A risk is knowing that some people steal from stores. A risk behavior is going to stores and shoplifting. A risk is not paying attention to your body and managing the appetite for food responsibly. A risk behavior is over-eating or starving yourself to manage your emotional needs. A risk is that some foods can increase blood sugar in diabetes. A risk behavior is being diagnosed with diabetes and not managing the kinds of foods you eat. A risk is knowing certain lifestyle choices can make respiratory problems worse, for example, certain jobs, smoking, doing drugs, etc. A risk behavior is having a chronic respiratory disease, but refusing to alter your lifestyle choices. In many ways, "risks" exist in every part of life. "Risk Behaviors", though, are the parts of risks that we can control ourselves.
to have respect
It is tabacco use.
There are five type of perceived risk monetary physical social functional
Brian P. O'Rourke has written: 'Qualitative insights into perceived risk in the home tourist market' -- subject(s): Consumer behavior, Tourist trade, Risk perception
Performance Financial Physical(Safety) Social Pschychological Time RISK
News broadcasts Advertising Product placement. Risk Aversion
News broadcasts Advertising Product placement. Risk Aversion
A perceived risk is a risk in which one thinks of that might happen before commiting an action involving that risk. An actual risk is a risk that has a better likelihood of happening. For example, getting a splinter is a perceived risk while walking barefoot. However, an actual risk is a car crash.
Teenage risk behavior are behaviors that will put the child in harms way. These includes fighting, truancy, drug abuse, and unprotected sexual activities.
Unhealthy risk-taking behavior is a behavior that puts you at risk for a bad consequence. Healthy risk-taking behavior is a positive tool in an adolescent's life for discovering, developing, and consolidating his or her identity. :)
Some types of risk behavior among today's youth include substance abuse, risky sexual behavior, reckless driving, and involvement in violence or criminal activities. These behaviors can have serious consequences on their physical, mental, and emotional well-being.
Easier access, less perceived risk.
Risk behavior is behavior or other factor that places a person at risk for disease. These disease can include HIV/AIDS, diabetes, cancer, etc.
Steven Payson has written: 'Using historical information to identify consumer concerns about food safety' -- subject(s): Consumer behavior, Food consumption, Health risk assessment, Press coverage