Perceived Value: A Dimension of the Consumer Risk Construct

This paper examines the effects of price and brand information on consumer risk in making purchase decisions. The introduction of non-monetary risk reinvigorates a promising research stream that has investigated the relationship of market cues and buying behavior. The research results strongly suggest that, in addition to the monetary risk of value, non-monetary risk such as social risk can be a key moderator between product character (quality and price) and consumersÕ willingness to buy. Not only do consumers make a rational trade off in terms of dollars and quality, but they appear to buy in terms of how they will be perceived by their friends, family and peers. Perceived value is found to be a multi-dimensional construct that covers the spectrum of financial and non-monetary risk.