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Perceived Risk

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Perceived Risk

  1. 1. PERCEIVED RISK Kunwar Atul Singh Institute of Management Studies (FMS), BHU MBA III Sem. Mliag..
  2. 2. PERCEIVED RISK  Any time customers consider purchasing a new product or service, they face a set of uncertainties about the product or service collectively referred to as perceived risk.  The level of uncertainty of a consumer, depending upon whether the purchase he/she making will be worth it or not  Perceived risk is the uncertainty a consumer has when buying items, mostly those that are expensive, e.g. car, house etc. Every time a consumer considers buying a product, he or she has certain doubts about the product, especially if the product in question is highly priced. Mliag..
  3. 3. TYPES • Functional Risks • Social Risks • Financial Risks • Physical Risks • Time Risks • Psychological Risks Mliag..
  4. 4.  Functional or Quality Risks  It refers to the fear that a product or service will fail to deliver promised services or benefits.  Perceived risks can include the fear and or doubt a consumer has that the product they are buying will fail to perform intended function.  Social Risks  Risk pertains to a consumer’s social status.  Person of a high or wealthy social class, they want to buy products that their friends would also buy. Mliag..
  5. 5.  Financial Risks  Every consumer is afraid that a purchase might strip them of their income sources at that time or in the future.  Physical Risks  An item that could cause bodily harm to a person or their family causes perceived risk.  Time Risks  If a product breaks or fails a few days after purchase and need replacement, this is time risks. Mliag..
  6. 6.  Psychological Risks  Consumers also face questions about whether a given purchase is the morally right choice. Mliag..
  7. 7. IDENTIFYING A PERCEIVED RISK Security / Warranty Hidden Extra Cost Reputation / Brand Name Mliag..
  8. 8.  Security / Warranty  The period of warranty / security will determine how uncertain the buyer will be.  The warranty makes them more trusting because they know if the product breaks down, they get a replacement.  Security provide assurance against potential risks.  The warranty / security should cover a long duration to boost the buyer’s confidence in the product. Mliag..
  9. 9.  Hidden Extra Costs  If there is a hidden costs to the selling price, there is a cause for alarm.  Reputation / Brand Name  Each and every consumer wants to get the best available product in the market Mliag..
  10. 10. COUNTERING PERCEIVED RISKS Reputation Selling Style Attention Mliag..
  11. 11. Mliag..

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