Dimensions of Perceived Risk in Organizational Buying Decisions

Abstract

Perceived risk is typically examined as a global contruct, or one whose major dimensions can be ad-ditively or multiplicatively combined to provide an aggregate measure. This paper stresses that risk should be defined in terms of the specific problem areas found in a given buying decision. It is examined as the likelihood of loss and magnitude of loss resulting from six individual problem areas. Influence in purchase decision-making is viewed as situational, arising from the relative abilities of different individuals to handle the critical uncertainties contained in a vendor or product decision. Results of an exploratory study in which risk is operationalized and related to influence are described.