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.