How much does risk perception shape consumer choices? This review examines 30 years of research on consumer-perceived risk, exploring its relationship with key marketing concepts like involvement and trust. By tackling debates on subjective vs. objective risk and the nuances between risk and uncertainty, the article provides a comprehensive overview of how consumers evaluate potential downsides in their purchasing decisions. This paper will help marketers understand how consumers factor in risk when evaluating brands, products, and services. The authors analyze various models developed to measure risk, assessing their strengths and weaknesses in terms of understanding, prediction, and practicality. The review identifies criteria for researchers to use when selecting the most appropriate model, considering factors like reliability, validity, and usability. By comparing different approaches to measuring perceived risk, the authors provide valuable insights for researchers and practitioners alike. This research offers practical guidance for marketers seeking to understand and manage consumer perceptions of risk. By identifying the most useful models and criteria for assessment, the authors empower researchers to conduct more effective studies and enable practitioners to develop strategies that mitigate perceived risks and build consumer confidence. This paper suggests that a basic two-component model is still the most generally useful for researchers and practitioners alike.
Published in the European Journal of Marketing, this review aligns with the journal’s focus on consumer behavior and decision-making. By synthesizing three decades of research on perceived risk, it builds upon existing knowledge within the journal regarding marketing constructs such as involvement and trust. This comprehensive analysis contributes to the journal's reputation as a leading resource for marketing scholars and professionals.