Image by IceSabre via Flickr
The notion that perceived risks influences purchasing behavior has been around for quite some time. As we have seen an increase in the complexity of the buying process, we are seeing a correlating increase in Buyer Perceived Risks (BPR)© associated with purchase decisions. Compounding perceived risks is the increase in choices as mentioned in my previous article as well as new social channels to explore. This new mishmash of complexity, choices, and new channels causes a much higher degree of uncertainty on the part of buyers.
What does understanding choice have to do with Buyer Perceived Risks (BPR)©? It comes down to two general areas:
Buyers are dealing with the uncertainty and the risks of making a bad choice
Buyers are dealing with the unknown consequences resulting from a bad choice
These two general areas of perceived risks are not necessarily new however the degree of impact has expanded significantly as a result of the convergence of the Internet and Social Technologies.
Variables that are affecting the degree of impact include speed, awareness, chance, and reputation. Put more simply:
The impact of a bad choice is happening much faster, more people as well as organizations are aware when they happen, there are... Read more