PERCEIVED RISK

Kunwar Atul SinghInstitute of Management Studies (FMS), BHU

MBA III Sem.

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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..

TYPES

• Functional Risks • Social Risks • Financial Risks

• Physical Risks• Time Risks• Psychological Risks Mliag..

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..

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..

Psychological Risks Consumers also face questions about

whether a given purchase is the morally right choice.

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IDENTIFYING A PERCEIVED RISK

Security / Warranty

Hidden Extra Cost

Reputation / Brand Name

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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.

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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

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COUNTERING PERCEIVED RISKS

ReputationSelling StyleAttention

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Thank You….

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