The impact of perceived risk on consumer purchase postponement

The objective of this paper is to discuss the impact of perceived risk (e.g. financial, performance and social risk) on consumer purchase postponement. Perceived risk is considered to be a critical determinant in the consumer’s willingness to adopt new products. The study context is that of high-tech consumer products. Data was collected from Australian consumers using an online survey, and linear regression analysis was carried out to empirically test the model. The findings indicate that financial risk had no impact on consumers postponing the purchase of the new product. However, consumers were more likely to postpone purchases of new products if perceived performance and social risk was high. This has an implication on the firm’s ability to reduce the performance risk of the new product by offering a free trial to the consumer and communicating the perceived benefits of the product. Furthermore, firms have to pay attention to the design features of the product making it acceptable to the consumer’s social network.