Perceived Purchase Risk
Perceived purchase risk is present when people fear and are concerned about wasting or losing money when purchasing or using products or services online. This risk includes making transaction mistakes, not receiving goods, and processing errors. Many older adults are concerned about using online banking and making errors which could result in them losing money. Others are worried about not understanding products, services or payment methods when attempting to purchase items.
For Joshua, these perceptions of risk manifest in the following ways:
“I am often afraid I will make mistakes when transferring money online.”
This risk perception relates to a fear of making mistakes in transferring funds online. It manifests in observable behaviour as avoidance of online banking. For example, Joshua tried online banking and entered the wrong digit. Instead of paying the plumber 200 he entered 2000 and had to contact the plumber. Ever since then – Joshua won’t do online banking. He only pays people in cash or cheques. He is too fearful of making a mistake and then losing money.
“I worry the goods I purchased online will not show up.”
This risk manifest as a fear that online purchased product will not be processed, and you will be financially out of pocket and not get the item. For example, Joshua bought a car part from overseas and it took so long to arrive that he was very concerned it would never come. The stress in waiting for the item means that Joshua won’t buy anything else online. He doesn’t want to go through that worry again.