Consumer behaviour under uncertainty and risk

How is the choice determined under risk and uncertainty?
Decision making under uncertain and risky situations
It depends upon the degree of knowledge that can enable you to predict the likelihood and extend of your success.
A good decision can be judged solely by the outcome alone when there is a certainty.
This is at one end of the certainty-uncertainty spectrum..
What is the concept of uncertainty and risk?
Risk Versus Uncertainty.
Risk, as it is generally understood by health and safety risk analysts, measures the probability and severity of loss or injury.
Uncertainty , on the other hand, refers to a lack of definite knowledge, a lack of sureness; doubt is its closest synonym.
At times, these terms are confused..
Definition.
Risk refers to decision-making situations under which all potential outcomes and their likelihood of occurrences are known to the decision-maker, and uncertainty refers to situations under which either the outcomes and/or their probabilities of occurrences are unknown to the decision-maker.
Hence, you are compelled to undertake decision-making under uncertainty.
However, decisions under uncertainty are different from decision-making under risk.
In the latter case, you are not even aware of all the options you have, the risks that each alternative poses, and the outcomes of all of these options.

Hence, the decision or choice under uncertainty is determined by the preference toward risk. Risk-averse consumers prefer lower risk and risk-takers prefer higher payoffs even in the presence of high risk. This phenomenon is easily applicable to consumer choices as well, where the payoff is in terms of utility.

One of the most notable responses to uncertainty is a tendency to seek more information before purchasing. When consumers feel uncertain about the quality, safety, or value of a product, they may be more likely to do their research and read reviews before making a decision.

How does uncertainty influence the behaviour towards significantly innovative services?

The behaviour towards significantly innovative services, and the influence of perceived risk in this context, has been relatively unexplored

Moreover, the part played by uncertainty has at best remained in the shadows, mainly because it has generally been seen as a component of ‘perceived risk’

What is a consumer behavior theory?

Consumer Behavior consumer behavior

R AYMOND Bauer first formally proposed that to mean "systematic explanation

" A theory and published

However, most of this research Overview of the Theory taking and has been conducted without a broader, The central problem of consumer behavior is choice

What is the central problem of consumer behavior?

taking and has been conducted without a broader, The central problem of consumer behavior is choice

Since the outcome of a choice can only comprehensive theoretical structure

This lack of be known in the future, the consumer is forced have worked to obscure the emerging picture of to deal with uncertainty, or risk

Perception of

Consumer behaviour under uncertainty and risk

How is the choice determined under risk and uncertainty?

What is the concept of uncertainty and risk?

How does uncertainty influence the behaviour towards significantly innovative services?

What is a consumer behavior theory?

What is the central problem of consumer behavior?