Information and risk perception: a dynamic adjustment process

Area of Science:

• Behavioral Economics
• Risk Perception Dynamics
• Consumer Psychology

Background:

• Consumers often exhibit delayed consumption adjustments following catastrophic events, particularly in food safety.
• Gradual acceptance of trustworthy information is key to normalizing consumption patterns.
• Media coverage, both positive and negative, significantly influences the perceived trustworthiness of information over time.

Purpose of the Study:

• To extend prospective reference theory with a dynamic risk perception adjustment process.
• To model how media coverage influences consumer trust and consumption.
• To analyze the asymmetric temporal effects of media information on risk perception and demand.

Main Methods:

• Extension of prospective reference theory to incorporate dynamic risk perception updating.
• Development of a general model for risk perception adjustment to media coverage.
• Case study analysis of consumer demand adjustment following a milk contamination event.

Main Results:

• Consumer risk perception and consumption levels adjust gradually, not instantaneously, to new information.
• The trustworthiness of information is established dynamically through ongoing media coverage.
• Positive and negative media information have asymmetric impacts on consumption and risk perception over time.

Conclusions:

• Media coverage plays a critical role in shaping consumer trust and risk perception post-contamination.
• The dynamic adjustment model explains temporal consumption patterns for various goods.
• Understanding these asymmetric effects is crucial for managing consumer behavior during crises.