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Involvement Level
The level of involvement is the time, energy and effort that is expanded on a purchase decision. Decisions where a large amount of time, energy and effort is expended are high involvement decisions; conversely decisions where minimal energy, effort and time are expended are low involvement decisions. This now begs the question, what causes consumers to spend more time, energy and effort on some decisions and less on others? The answer it is the Perceived Risk that a consumer feels which causes him to be either more involved or less involved in decisions.

Perceived Risk is “the uncertainty that consumers face when they cannot foresee the consequences of a purchase decision.”

The different types of uncertainties that consumers face are product performance uncertainties, physical harm in case of products which are internally consumed, financial risk of having ‘lost money’ on the purchase or of being ‘cheated’ or social risks in terms of loss of face or self image.

The degree of risk that a consumer perceives depends on:

(i) His knowledge of the product category/technology

(ii) Whether the consumer has established criteria for evaluation

(iii) The tangibility of the product category-intangibles like service are difficult to evaluate

(iv) Individuals own personality traits such as anxiety levels

(v) Shopping situation- online shopping increases the risk, as the product cannot be physically examined.

Higher perceived risk causes consumers to be more involved in the purchase decision and lower perceived risk causes less involvement in the purchase decision. The important thing to understand is that level of perceived risk is not constant; it changes as the consumer’s knowledge about categories and brands increases. Hence decisions once categorized as high involvement can become low involvement decisions. Conversely low involvement decisions can also become higher involvement decisions if there is a significant change in the product category due to technological changes or any other factors.

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