On the basis of previous reviews of the perceived-risk concept, a mode
l of risk perception and its effects on consumers' risk-handling behav
ior is formulated. Hypotheses derived from this model are empirically
tested and indicate that, for the setting studied (women purchasing a
dress), the intended use of risk-handling activity increases with high
er levels of perceived risk. This relationship is more pronounced afte
r the level of risk exceeds the individual's acceptable level of risk.
Also of importance in determining the use of a risk-handling activity
are the perceived benefit of the type of risk-handling activity and t
he consumer's inability to absorb a monetary loss.