What is it?

Perceived risk refers to a user’s subjective assessment of potential negative outcomes associated with a decision. Risk may be financial, functional, emotional, or social.

Reducing perceived risk is often a prerequisite for conversion.

Examples in Action

• Unclear return policies
  
• Unknown or unfamiliar brands
  
• High-commitment actions
  
• Complex or irreversible decisions
  

Typical Outcomes / Results

• Increased confidence when risk is mitigated
  
• Higher conversion rates
  
• Reduced friction at decision points
  
• Improved trust and reassurance
  

This glossary entry reflects common behavioural and marketing theory.