RISK AND UNCERTAINTY IN CONSUMER DECISION-MAKING: AN OVERVIEW OF PRINCIPLES AND PERSPECTIVES

Abstract

Consumers' decision-making power is irrational in everyday life due to risk uncertainty, limited information, perceived cost, and other variables; hence, it is critical to research consumers' decision-making to select the best out of numerous alternatives. This entails selecting a course of action to address a specific problem from among two or more possible alternatives- decision-making processes incorporate elements of uncertainty and risk. Therefore, this article aims to explore the principles, values, and approaches to decision-making risk and uncertainties by analysing recent literature. Decision-making analyses are conducted from a variety of analytical viewpoints. However, Tversky and Kahneman's prospect theory, published in 1979, remains one of the most widely utilised approaches for analysing decision-making under suspicion and ambiguity. Also, personal choices are a problem-solving approach with an emphasis on alternative selection. Ultimately, working on consumer decision-making and aging is critical for a complete knowledge of how customer loyalty and high-quality decision-making may be retained over a person's life.