Consumer Behavior Expert Analysis: Risk Misperception in Practice

This presentation analyzes the concept of risk misperception in consumer behavior, drawing from academic research to provide practical business recommendations. It highlights how adding a risky factor can decrease the perceived value of other factors and how consumers often prioritize smaller risks over larger impacts. The analysis references an article on risk misperception and provides specific recommendations for Bank of America, including implementing customer-beneficial schemes, withdrawing potentially unpopular announcements, initiating zero-balance accounts, and introducing unlimited withdrawal plans. The presentation concludes with a list of references and a bibliography of related works, providing a comprehensive overview of the topic and its practical implications.

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.