| “Without TRUST there can be no transaction” Frank Kern
Many marketers, as well as psychologists, argue that risk is the biggest determining factor in any sales transaction.
Therefore, internet marketers need to make the perception of risk, and the reduction
of the amount of actual risk, a priority.
Research in psychometrics has proven that
risk perception is highly dependent on
intuition, experiential thinking, and emotions.
The Fear Feedback Loop: Stimulus > Perception > Evaluation > Decision > Behavior > Feedback Loop
When we perceive something that's a potential risk, the amygdala is what reacts immediately - causing adrenaline and other hormones to be released into our bloodstream, triggering the “fight-or-flight” response.
The Risk Compensation Theory (Wilde, 2001) proposes that we are less afraid of risks that come from things that we trust.
Daniel Kahneman’s Prospect Theory (1979) suggests that as the perception of trust increases so the perception of risk decreases.
For example, the use of trust badges and stamps on websites, blogs or sales pages and has been proven to increase customers’ perception of trust.
Profit from Persuasion Richard G. Lewis PsychoProfits.com
P.S. There’s a new software that automates
the
use of trust badges on any blog or website
and
significantly increases conversions.
| 
