Status Quo

In: Social Issues

Submitted By TP035254
Words 890
Pages 4
* Section A

1- What are the perceived risks in buying and using a service?

Any time customers consider purchasing a new product or signing up for a new service, they also face a set of uncertainties about the product or service collectively referred to as perceived risk. As part of the conversion process from potential customer to paying customer, businesses must develop strategies to assuage one or more of the six types of perceived risk:
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 functions or benefits. A new computer, for example, might fail to run the resource-intensive, audio editing program a sound engineer needs to perform her job.
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. If, for example, someone purchases a pure-bred dog and finds his friends consider adopting animals from shelters the socially responsible behaviour, he suffers a loss of status.
Financial Risk
Financial risk boils down to a fear that a potential purchase can tax or outstrip a person’s monetary resources, now or in the future. Financial risk operates on both a subjective and objective level. A person with low or variable income can experience a high level of subjective financial risk, even with low-cost items. The purchase of a home, on the other hand, often means an objectively high level of risk, even for those with stable finances.
Physical Risk
Physical risk refers to the perceived potential for a purchase to cause bodily harm to a person or loved one. A firearm, for example, might create a high level of perceived physical risk in the minds of some customers. A book or magazine, by contrast, prompts physical risk concerns in few customers.…...

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