A MODEL OF PERCEIVED RISK AND INTENDED RISK-HANDLING ACTIVITY

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.