Question

Page 168 of Consumer Behavior: Buying, Having, and Being identifies five types of perceived risks: monetary, functional, physical, social, and psychological. Think about a purchase that you or your family made in the last month or two. Identify one or more risks associated with that purchase and then analyze how you dealt with it. Did you identify or acknowledge it? Discuss it? Ignore it? Accept or reject it?

Given this knowledge, how should a marketer approach you as a consumer regarding the purchase of this type of item? What would you do about perceived risk if you were the product manager for this item?

Answer 1

I had purchased a car around two months ago, risk associated with it

1. Monetary risk- Car might meet with an accident or a new model is launched which reduces resale value
2. Functional risk- Car might not be used often in these covid times and hence some if it's parts like engine might face some problems.
3. Social risk- That the car might not appeal to my social value or to the society as it was a me level hatchback and I bought it during discount season

In order to deal with above-mentioned risk, first and foremost thing that I did was getting it insured. In order to curb functional risk, I registered it with zoom car so that it can be used frequently and also it would provide me an additional income.

If I were the product manager of this product, first of all I would highloghr the value offering of this car and how it was different from our competitor. Secondly, I would provide some additional benefits to reduce the risks like free service for an year, extended warranty and insurance at discounted price.