Perceived risk

It is defined as the uncertainty that the consumers face when they cannot foresee the consequences of their purchase decisions. Consumers often perceive risk because of uncertainty as to the consequences of their product purchase decisions. The degree of risk that consumers perceive and their own tolerance for risk taking are factors that influence their purchase decisions. The major types of risks that consumers perceive when making purchase decisions include functional risks, physical risk, financial risk, social risk, psychological risk, and time risk.