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 Margarete, these perceptions of risk manifest in the following ways:
“I am often afraid I will make mistakes when transferring money online.”
Example 1
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, Margarete tried online banking on her phone and entered the wrong digit. Instead of transferring $200 to her friend for a dinner, she entered $2000. Although they both had a laugh about it, she is now afraid of sending money from her phone – and leave this to her husband.
“I worry that friends and family would think less of me if something went wrong in any transaction I made.”
Example 2
This purchase risk is focused on the fear that friends and family would think less of someone if they made a mistake purchasing something. For instance, Margarete’s husband tends to dominate tech in their household. She recently bought him a birthday present online, but it has not shown up. She is afraid of telling him, not just because it would ruin the surprise, but also because she thinks she fell for a scam – which would greatly annoy her husband.