THE FORMATION OF CONSUMER’S PERCEIVED RISK AND RISK AVERSION IN THE CONTEXT OF INNOVATION ADOPTION: A QUALITATIVE RESEARCH

Abstract

The level of perceived risk is acknowledged to determine the innovation adoption decision. Yet, despite being largely studied in a manifold of disciplines, we still have a poor understanding of its formation from a marketing perspective. This paper offers valuable insight on how perceived risk and risk aversion evolve under different conditions and how the influence on adoption decision is made. We perform two focus groups and 10 in-depth interviews that enable us to build several counterintuitive paths that refute previous findings. Implications for management and science are discussed and a new theory is proposed.

Keywords

• Innovation adoption
• Perceived risk
• Risk aversion