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Perceived risk & zone of tolerance

perceived risk & zone of tolerance

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Perceived risk & zone of tolerance

  1. 1. Perceived Risk & Zone of Tolerance Reshma Ramesh Rajadhani Business School
  2. 2. Perceived Risk Perceived risk is a set of uncertainties that consumers have in their minds while purchasing a product regarding the outcome of the product usage.
  3. 3. Types of Perceived Risks • Functional Risk • Social Risk • Financial Risk • Physical Risk • Time Risk • Psychological Risk
  4. 4. Functional risk • One of the most common types of perceived risk, functional or quality risk refers to the fear that a product or service will fail to deliver promised function Social risk • Social risk refers to the possibility that buying a product or using a service can reduce a person’s status with friends, family or neighbours.
  5. 5. Financial Risk • Financial risk comes when consumer has fear that purchasing the product can tax his monetary resources. Physical Risk • Physical risk refers to the perceived potential for a purchase to cause bodily harm to a person or loved one.
  6. 6. Time Risk • Time risk is related to the fear of time lost when a product is needed for replacement or not fulfilling promised functions Psychological Risk • Consumers also face questions about whether a given purchase is the morally right choice.
  7. 7. Zone of Tolerance The zone of tolerance is defined as the range of customer perception of a service between desired and minimum acceptable standards.

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  • SahidahKim

    Nov. 17, 2017
  • AngkhaHabung2

    Feb. 23, 2020

perceived risk & zone of tolerance

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