Consumer perceived risk: conceptualisations and models

TLDR

Consumer‑perceived risk has been studied for three decades, with extensive literature reviewed. The study aims to map theoretical and model developments in consumer‑perceived risk and propose criteria for selecting the most useful model. The review examines how perceived risk relates to involvement and trust, debates subjective versus objective risk, distinguishes risk from uncertainty, surveys model evolution, and culminates in criteria of understanding, prediction, reliability, validity, practicality, and usability. The basic two‑component model remains the most generally useful for researchers and practitioners.

Abstract

Reviews the literature on consumer‐perceived risk over the past 30 years. The review begins by establishing perceived risk’s relationship with related marketing constructs such as involvement and trust. It then tackles some debates within the literature, concerning subjective and objective risk and differences between the concepts of risk and uncertainty. It describes how different models have been devised and operationalised to measure risk and how these have developed over the years. Aims to identify and report the theoretical and model developments over the past 30 years and to propose criteria which researchers can use in deciding the most useful model for their own research. The criteria are: understanding, prediction, suitability for reliability and validity assessment, practicality and usability. It is suggested that the basic two‐component model is still the most generally useful for researchers and practitioners alike.