Definition of perceived risk

negative or unexpected consequences a consumer fears may occur as a result of making the wrong purchase decision. A high-priced, complex, durable good, like an automobile or personal computer, has a higher perceived risk than a low-priced, consumable commodity like hand soap. The greater the perceived risk, the more likely it is that the consumer will seek information about the product and the recommendations and experiences of peers before buying. Educated, self-confident, affluent consumers are less likely than others to perceive risk. In a situation with high perceived risk, the consumer is more likely to purchase the same brand repeatedly or to purchase a leading brand or one with performance guarantees and warranties; new products or brands will be avoided.