How understanding consumers’ risk tolerance can drive engagement
People try to take calculated risks — but that doesn’t mean they do their math the same way. Ipsos’ Nathan Rosenstein looks explains why brands should understand the behavioral science behind uncertainty.
Risk is a ubiquitous term for describing uncertainty. But that perception can vary greatly among different people and contexts. (As the pro rock climber Alex Honnold once quipped: “Falling from this building is a high consequence, but for me, it's low risk.”) Risk, like so many things, is relative.
Consumers, too, are willing to accept different risks based on category and context. Traits like age and life stage can also play a big role: Reinforcing the notion that experience informs our risk appetite, older Americans are less willing to accept risk in many contexts.
Ipsos’ Behavioral Science team studies underlying motivations, from disinhibition to boredom to precarity, to understand how risk acceptance varies across demographics and purchase categories. This analysis can reveal hidden paths to engagement with current and potential consumers. But, more importantly, it reveals opportunities to build trust — so the chances people take on your brand aren’t seen as risks.
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