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Dr.M.Arul, MBA., Ph.D., Professor, Department of Business Administration, Annamalai University, Annamalainagar. A.Arockiaraj, Ph.D, Research Scholar, Manonmaniam Sundaranar University. Address for communication : A.Aroc iara!, "#" $ast Street, panic an uppam % post, Panruti & '#( )#' Mo*ile + ,,('-----) $.mail : aro iara!) Intro uction Ris has *een studied from many different perspectives: economic, psychological and consumption. $conomists and insurers define ris in terms of a company, country, or instrument defaulting /i.e., not follo0ing through on a promised or e1pected return2 see Mc3adden ),,,4. 3inance defines ris in terms of the volatility of price around a mean /Shefrin5##64. Statisticians thin of ris in terms of uncertainty, or a pro*a*ilistic assessment of the li elihood of an event occurring versus not occurring 0ith this usage common in the *ehavioural decision theory literature as 0ell /7vers y and 8ahneman ),(94. Because of the multi.dimensional nature of ris , methods for studying and o*serving its effects have varied 0ithin and across paradigms and disciplines. :ealth ris has *een as the perception of the su*!ective li elihood of the occurrence of a negative event related to health for a person or group of people over a specified time period. IMPORTANCE O! STUD"IN# HEALTH RISK PERCEPTIONS :ealth ris perceptions are important to study *ecause they are theoretically interesting, managerially relevant, and have consumer 0elfare and pu*lic policy implications. 7he domain of health provides a rich set of constructs that allo0 a consumer researcher to e1amine larger theoretical ;uestions such as: ). <hat is the interplay of the cognitive and affective systems in the construction of ris estimates= 5. <hat factors moderate the lin *et0een !udgments li e ris perceptions and :ealth related *ehaviour= ". Do individuals differ in the manner in 0hich they process information and ma e= >udgments= 7he rest of this chapter is organi?ed as follo0s: <e integrate several e1tant approaches to studying health ris and propose a conceptual model of the antecedents and conse;uences of health ris perceptions. <e place the e1tant research in the health domain in our proposed frame0or , 0ith the effect of perceived ris on patient@s *ehaviour. In$%rt !i&ur% ' a(out )%r% ANTECEDENTS O! CONSUMER PERCEPTIONS O! RISK 7he antecedents of health ris perceptions in the e1isting literature can *e classified into five ma!or types of psychological factors: motivational, cognitive, affective, conte1tual, and individual differences.

0hich may decrease the persuasiveness of an appeal /8eller and Bloc ).--4 accessi*ility. social desira*ility.diagnosticity frame0or help us understand ho0 the different pieces of information that are salient to a consumer at a given time might influence the ind of ris related cues that come to mind. self.uestionnaire that ends up serving an informative 3unction rather than the pure recording function for 0hich it 0as intended.uestions are framed.. Motivational factors are inherently intert0ined 0ith perceptions of health ris .Moti*ational !actor$ A variety of factors and *iases in the domain of health ris s may *e attri*uted to motivational factors.uestionnaire affects the reports elicited. in turn.uestionnaire itself /Bic art ). 3or e1ample.uences of contracting a disease is more persuasive 0hen there are cues in the message that induce in.tual !actor$ Bne of the *etter studied conte1tual sources of information to ma e responses is the . the order in 0hich they are as ed.positivity. 7he cognitive aspects of survey methodology literature sho0s that the manner of construction of a . An summary. and self..positivity *ias is depressives. 0hen the information is *eing processed only in a shallo0 manner. Bloc and 8eller /). An the conte1t of processing health message information in the domains of s in cancer and se1ually transmitted diseases. Bn the other hand."4.64 demonstrated that information that highlights negative conse. affect later responses /see Sudman et al.uence of considering health ris s. People might anticipate and e1perience the negative affective conse. the valence of the information presented did not affect persuasion. :ighlighting negative conse.uences may lead to feelings of fear. Depressive 7endency: Bne of the fe0 groups of people 0ho have *een sho0n to not have the self. A++%cti*% !actor$ Affective factors play a role in terms of people@s a*ility to deal 0ith negative events or information. 7hree primary phenomena highlight the motivational factors affecting health ris perceptions: self. 7he model proposes that the e1tent to 0hich they e1ist is a function of individual and conte1tual differences. 7heir ris estimates are more realistic than the average .depth processing.6 for a revie04. social desira*ility and self control are three motivational factors that affect the perceptions and report of a person@s o0n health ris . 7hey predict that D/a given Piece of information4E0ill *e used as an input to a su*se. the response alternatives used to elicit their responses and other incidental information in the . including the manner in 0hich .. ). In i*i ual Di++%r%nc%$ 7here are many individual difference varia*les that may also account for systematic differences in ris perceptions *et0een groups of individuals. and can. positivity /or unrealistic optimism4.control..'4 Co&niti*% !actor$ 3eldman and Cynch@s /).uent response if the former is accessi*le and if it is perceived to *e more diagnostic than other accessi*le inputsF Cont%.

there could *e other factors that interact 0ith ris perceptions.negativity /versus another person2 8eller. 0hile pessimists incorporate * ing in different situations and ho0 interventions can *e designed to strategically influence the ris *ehaviour lin in specific situations. 0e rely on previous mar eting research /Rogers ). a term referred to as Ddepressive realismF /cf. 3or instance. 5##52 see Ac ermann and DeRu*eis ). 7hese forms of ris may*e associated 0ith the health pro*lem itself or 0ith preventiveHcorrective *ehaviours.uences depends on *oth. or it could *e financial. 0ith their ris )5 estimates reflecting pessimism /versus an a*solute ris level4 and self. as 0ell as the ris related to the corrective *ehaviour/s4. the ris s associated 0ith the health pro*lem. Cip us.esteem /Gerrard et al. 0e discuss the effects of different types of ris s and ho0 they affect a variety of consumer decisions. the e1isting models of health psychology do not discriminate *et0een various types of *ehavioural outcomes that may result from ris evaluation. Related to the notion of distinct *ehavioural outcomes.u%nc%$ 7he lin *et0een ris and *ehaviour can also *e analy?ed from the perspective of the different forms that the ris might ta e for the consumer. and then engages in more preventative.estimates of controlla*le events 0hen provided 0ith *ase. ). have lo0 self. there are several factors that guide 0hen ris mediates *ehaviours and 0hen this lin *et0een ris and *ehaviour *rea s do0n. Most e1isting models of health psychology discussed earlier endorse the importance of studying the ris .2 8eller. it is important to understand 0hen ris 0ould mediate health *ehaviours and 0hat ind of *ehaviours 0ould *e influenced. or psycho.(. 0e discuss ho0 different forms of ris could affect the consumer decision.population. 5###4.('4. 7he form the ris ta es for the consumer can govern ho0 it influences decisions or *ehaviours.uences of ris elicitation. Ri$k a$ a Mo %rator o+ B%)a*ioural Con$%. and determine 0hat ind of *ehaviours might *e affected *y the ris perceptions. precautionary. this ris could manifest in many different domains or forms. CONSE-UENCES O! RISK PERCEPTIONS Ris perceptions can play t0o ma!or roles: Bn the one hand.'(. Bn the other hand. Depressives are less prone to self. Bur model recogni?es that ris may manifest in several forms and these different forms of ris may lead to distinct *ehavioural outcomes. <e defined ris as negatively. and 0hat interventions may *e effective in eliciting healthy *ehavioural patterns. An our model. . 7his is the role of ris perceptions as a Moderator. Ie1t. Bur model emphasi?es the need to understand the persuasive conse. they can *e highly correlated 0ith *ehaviour. Relatedly. and Rimer. the ris could *e related to performance of a test or treatment or health product. their conceptuali?ation of ris is mostly uni dimensional. 7he e1tent to 0hich !udgments of ris translate into corrective *ehavioural conse. valence li elihood assessment that an unfavoura*le event 0ill occur in an a*stract 0ay..rates.-(4 to identify a variety of different consumer decisions or *ehaviours that may occur due to ris evaluation..positivity as they vie0 their life and future in negative terms /Bec . Alloy and A*ramson ). Cip us and Rimer. and healthy *ehaviour. physiological. 3rom a consumer standpoint. 7his is the role of ris perceptions as a mediator to *ehaviour. ).) for a revie04. such that 0hen one *elieves that one is at ris . :ence. :o0ever.'52 ). Cin et al /5##"a4 sho0ed that optimists are less li ely to update self.*ehaviour lin . 5##54. An the follo0ing into their !udgments for all events.

.g. the greater the financial ris and the lo0er the li elihood of trying. psycho. and its testing can fre. and financial ris in a single construct. adopting or repeating the treatment. decisions. or that another alternative treatment may perform *etter than the chosen one.rays. :ighlighting actual ris s. and continuing treatment is ey to understanding the psychology of health ris .g..uently *e invasive /e.Performance ris :is the li elihood that the treatment 0ill not perform as per prior consumer e1pectations.g.-4 emotionally difficult and this might discourage them from ta ing preventive action. Given that health ris almost al0ays has a physiological aspect. 7he lin s to the other later *ehaviours in the various stages of consumer decision. if a person no0s that sHhe cannot afford the treatment for AADS. positivity highlight the importance of mental 0ell. Psycho. side effects of medications4 understanding the factors that inhi*it people from *eing ris is the *elief that using a product or service 0ill cause a reduction in the psychological 0ell *eing or the social status of the consumer. Most of the e1tant 0or in mar eting has e1amined ho0 ris perceptions are formed.--4.ris perceptions em*ody physiological. consumers might find treatments that involve trading off *et0een t0o important attri*utes /e. Psychological ris can lead consumers to shut. 1. Physiological ris is the set of *eliefs that underta ing a product or service may cause harm /e. Cuce ). the higher the initial cost of a )6 treatment.g. they also provide a theoretically interesting construct incorporating the many facets of consumers@ ris perceptions.do0n. 7he most common psycho. *lood tests. mammograms etc. 7ypically. then sHhe may prefer to not *e diagnosed and may strategically underestimate herH his ris of contracting AADS to maintain positive mental health as argued *y 7aylor and Bro0n /). An this chapter. 3or involving safety. Ris perceptions involving as 0ell as highlighting *enefits 0ill allo0 consumers to ma e informed health related choices. <hat strategies are effective to get people to stay on a course of action= <hat are the primary reasons for their dropping out & is it fears of failure or fear of success= <hat is needed to get consumers to encourage others= . as can its treatment /e. 0hen introduced many consumer *elieved that micro0aves could lead to cancer and 0ere hesitant a*out *uying them4. 3inancial ris is the perceived li elihood associated 0ith not getting the e1pected return /financial. and de*un ing common myths. trade. starting treatment. and *ehaviours..insured or uninsured in the US and other countries ma e it pertinent for consumer researchers to e1amine the e1tent to 0hich financial ris considerations in see ing diagnosis and treatment are a factor that inhi*it consumer from <ishing to recogni?e their actual level of ris . not only are they interesting to e1amine from the point of vie0 of pu*lic policy and social ris that has *een studied is that of coping and social support mechanisms. and ho0 these can assist in getting consumers to try preventive courses of ing chain are a rich future source of en. 7hus.uiry. :ealth.. An other 0ords. 7he high cost of medications and the high percentage of the under. utilitarian or hedonic4 on a financial outlay /e. 0e focus on one type of ris perception: health ris s.g.. deny ris . performance. A systematic *ias in perceptions of a*solute or relative levels of any of these forms of ris can lead to no optimal purchases.*eing and usually have a psycho.. or delay ta ing preventive action. the price of the 7reatment4.

Andividuals may vary 0ith respect to *oth components. 7he lin *et0een ris perception and *ehaviour is t0o directional. consumers perceive them as ris y *ecause the performances of these services are uncertain and un no0n compare to products. 7he concept of Perceived Ris involves *oth the Perceived uncertainty of outcomes and the Perceived severity of negative conse. 7rust is only relevant in situation of uncertainty. An general. Ris perception can influence *ehaviour and vice versa. An the conte1t of hospital. A mis!udgement of ris may lead to inappropriate decisions and an unsafe *ehaviour or human error & ris perception is a critical antecedent of at. 7he influence of Perceived Ris on consumer decision ma ing may *e different in situation that are dominated *y different type of Ris . At differs from situation to situation. 7hus trust as the 8ey factor for reducing the comple1 of decision ma ing process. Based on 0hat 0e remem*er and recognise. on ho0 0e are going to *ehave. Social. T)% link (%t/%%n ri$k 0%rc%0tion an (%)a*iour <e ma e decisions every day2 consciously or unconsciously. 5##94. decisions that 0e ma e a*out safety ris s. Patients have many different associations 0ith their *ehaviour. Luality of health care has *ecome a concern for patients. Ket ma ing a decision is a difficult cognitive process. Af a patient trust 0ith the hospital name that li ely to reflect positive *ehavioural intention to0ards the hospital.ue customer e1perience 0hich 0ould ma e the consumers to use the hospital services. :o0ever. :ence Perceived Ris can also reduce purchase *ehaviour *y underta ing additional information searches. 7here is also agreement that trust only e1ist in an uncertain and Ris y environment.uences of trust has *een conceptuali?ed either as *ehavioural intention to0ards the hospital or as an actual pattern of purchase *ehaviour. Brand affect is another association *y the patients to0ards the hospital.ris *ehaviour. consumers see to reduce the uncertainty and comple1ity of *uying process *y applying mental shortcuts. Bne class of association of satisfaction 0hich can *e seen as a patients overall favoura*le or unfavoura*le evaluation of the hospital. the notion of Ris comprises t0o components namely the uncertainty of an outcome and the importance of negative conse. :aving only limited cognitive resources availa*le.uences associated 0ith the outcome of a choice. Jonsumers differ 0ith respective amount of ris they are 0illing to incur in a given situation. individual differences and perceptions influence our decision. institutional and Performance ris may *e Perceive independently of one another as they can arise from different inds of ing and the resulting *ehaviours /:illson. ris y *ehaviour may cause an affective reaction. financial. may also *e fla0ed.7he relationship *et0een memory and perception is crucial. Coyalty as important conse. Many studies have sho0n that consumers perceive different facets or components of Ris and that their Predictive value for total Ris and Ris Reducing *ehaviour depends very much on the product class. $fficient service offering creates uni. $ven 0hen 0e are a0are of all the contri*uting aspects. if our recollection is inaccurate. 7here is a General agreement that in situation 0ith high customers@ involvement the decision ma ing process is more comple1. <e often rely on our memory of procedures and our recollection of ho0 0e performed tas s 0hen 0e underta e 0or . Bne effective . Brand affect is the potential to elicit a positive emotional response from the average consumers and it can serve as a means to reduce Ris . At involves the amalgamation of various sources of information. Patients increasingly e1pect more from health services and compare their e1periences 0ith their perception.uences.

Ra!agopal and Kaacov 7rope /5##54. Stephen >.64...F >ournal of Jonsumer Research.. *rand affect. /). 6)#. <illiams.. 69.R. RE!ERENCES Agra0al.J.. DGetting $motional a*out :ealth..B. 56. 6". Geeta Menon and >ennifer Aa er /forthcoming4. 3leming. purchase loyalty. 8eller /). D<al ing the 7ightrope Bet0een 3eeling Good and Being Accurate: Mood as a Resource in Processing Persuasive Messages.. 7aylor. Bloc .'4. 8..#4.-'4. '6'.. % Gordon. Conclu$ion 7he Perceived Ris is a one of the most important 3unction for the patients on their *ehaviour. 7he effects of perceived and o*!ective safety ris on employee outcomes. A*erdeen: :MSB. DAn Anchoring and Ad!ustment Model of Spousal Predictions. B. P. -" /"4. Advancing understanding of no0ledge@s role in lay ris perception.F in Daniel Gil*ert.F >ournal of Mar eting Research. S.*4. Davis. R.F >ournal of Mar eting Research. "(6.5#".M >ournal of Mar eting Research. M. )"". Susan 3is e. D7he Social Being in Social Psychology.. M..S. ).Cevy/). % Jrum. Ior*ert Sch0ar? and >ohnny Blair /)."(.5. ris : Assues in :ealth and Safety. Ris perception and safety in the offshore oil and gas Andustry. Cauren G. /). >ournal of Nocational Behaviour... .. ' /94. and Punam A. Iidhi. Duraira! and >oan Meyers."(. An this research the researcher has empirically analyse the effect of Perceived ris of patients@ *ehaviour.. Mahes0aran. 8.94.656. M7he Anfluence of Message 3raming and Assue Anvolvement. $aston Ragsdale /). Anternational >ournal of Pu*lic Bpinion Research. 9..mental shortcut is trust 0hich can serve as a mechanism to reduce the comple1ity of human contact in situation 0here people have to hope 0ith uncertainty.''-. /).-4. 5( /August4. )-. "##. /). Mearns. Ie0 Kor : McGra0.F >ournal of Personality and Social Psychology. At can *e assumed that Perceived ris influenced on satisfaction of *rand trust. :arry C. Bar*ara.5)5. 3lin.. D<hen to Accentuate the Iegative: 7he $ffects of Perceived $fficacy and Message 3raming on Antentions to Perform a :ealth Related Behavior. /). >ohnson.-. )" />une4. Geeta Menon."4. :ealth and safety e1ecutive *oo s.. Morro0. 7he :and*oo of Social Psychology. Shelley $. :ill. Bic art. ")".'( Raghunathan. % Gardner Cindsey /$ds. R. >ournal of Psychology: Anterdisciplinary and Applied. "'). "5 /May4. attitudinal loyalty.4. Mood and organisational citi?enship *ehaviour: 7he effects of positive affect on employee organisational citi?enship *ehaviour intentions. D7he Use of Anchoring Strategies in the Jonstruction of Pro1y Reports of AttitudesF..<. % <ong 7. :och and $.-4.

Figure 1. Proposed Research Frame work: Trust 1 Trust 2 Trust 3 Trust 4 Recom mendati on Purchas e Loyalty Brand Trust $R #R SR PR Perc eive d Risk Patients Satisfaction Willin to Revisit Brand Affect Attitudina l Loyalty A!1 "R A!2 Affect 1 Affect 2 Affect 3 .