The information‐risk conundrum

Abstract

Information technologies have been deliberately targeted towards enhancing database access, analytical powers and the communications capacity of marketers. The justification for these efforts has been based on the premise that more and better quality information will result in reduced uncertainty and improved risk perceptions in decision situations. This premiss is examined in the context of decision maker behaviour, drawing on empirical research involving 50 managers undertaking strategic analysis and decisions. The research methodology employed a computer‐based simulation of a strategic decision situation, enabling the managers to access structured information databases to support their decision making. Concludes that the initial perceptions of uncertainty and risk relating to the decisions faced are unlikely to be modified irrespective of the quantity or quality of the information transmitted and processed by the decision maker. The evidence suggests that the decision maker may also construct their decision‐taking behaviour to constrain the opportunity for new information to alter the initial perceptions and choices made.

Citation

Ritchie, B. and Brindley, C. (2001), "The information‐risk conundrum", Marketing Intelligence & Planning, Vol. 19 No. 1, pp. 29-37. https://doi.org/10.1108/02634500110363781