The Study On Diffusion Of New Product By Consumer Perceived Risk Theory

On 21 century, the competition between the enterprises became more intense, which compelled companies take measures to improve competitive forces. In order to develop and expanse the company, continuously research and development of new products turned into one of useful method. But not all of new products can be succeed. The reason was the existence of Perceived Risk in consumer decision making process. Accordingly, how to increase the consumer satisfaction on new product, reduce consumer perceived risk and promote the diffusion of new product. This was what this paper resolved. In this article, based on the previous studies, I studied the diffusion of new product on Consumer Perceived Risk. Considering the influence of Product Life Cycle, I arrived at a conclusion by empirical research: which components of Perceived Risk affect the diffusion of new product most? Based on the consequence, I gave companies some advices on marketing at the end of this article.