Developing a Perceived Risk Model for Customers of Investment Services

Abstract

Consumer perception regarding the uncertainty and adverse consequences of buying a product or service is regarded as one of the most important determinants for understanding consumer behavior affecting his decision-making process. The consumer perception is influenced by a number of factors and situations. Hence, it is necessary to develop a model for explaining risk perception of individual investors in the investment services market. The present study is an applied and descriptive-survey research. A self-administrated questionnaire was used for collecting the research data the reliability and validity of which were measured and confirmed in this study. In order to analyze the research data and test the research hypotheses, path analysis was used through SPSS and LISREL. The results revealed that risk propensity, trust, self-efficiency and investors’ knowledge have a significant effect on individual investors' perceived risk. In addition, the results showed that the perceived risk has a significant impact on attitude and tendency to invest.

Keywords

• perceived risk
• risk propensity
• self-efficiency
• trust
• knowledge