Risk Misperception and its Impact on Consumer Behavior

This article discusses the impact of risk misperception on consumer behavior and how it affects their decision-making process. The findings suggest that adding a risky factor decreases the value of other factors and that consumers tend to consider smaller aspects. The article recommends that Bank of America use customer beneficial schemes, withdraw the announcement, initiate zero balance accounts, and introduce unlimited withdrawal plans. References and bibliography are also provided.

RISK MISPERCEPTION
Name of the student:
Name of the university:

Findings of the article
 Adding a risky factor decrease the other
factor’s value
 Risk with smaller impacts surpasses the
bigger impacts
 Consumers consider smaller aspects
(Khan & Kupor, 2016)

Recommendations for Bank of America
 Use customer beneficial scheme
 Withdraw the announcement
 Initiate zero balance account
 Introduce unlimited withdrawal plan
(Bank of America, 2018).

References
 Bank of America. (2018). Bank of
America - Banking, Credit Cards, Home
Loans and Auto Loans. [online] Available
at: https://www.bankofamerica.com/
[Accessed 18 Apr. 2018].
 Khan, U., & Kupor, D. M. (2016). Risk
(mis) perception: when greater risk
reduces risk valuation. Journal of
Consumer Research, 43(5), 769-786.

Bibliography
 Hudson, S., Huang, L., Roth, M. S., & Madden,
T. J. (2016). The influence of social media
interactions on consumer–brand relationships:
A three-country study of brand perceptions
and marketing behaviors. International Journal
of Research in Marketing, 33(1), 27-41.
 Pappas, N. (2016). Marketing strategies,
perceived risks, and consumer trust in online
buying behaviour. Journal of Retailing and
Consumer Services, 29, 92-103.