A consumer can feel a number of risks in purchasing a product or service that could be a barrier to a company. There are six kinds of risks that can arise in a consumer that a marketer should be aware of.
- The functional risk is when a consumer is concerned that the product will not perform to their expectations.
- Physical risks arise when the product of service threatens the consumer health or well being such as vitamins.
- Financial risks are common in consumers when they believe the product is not worth the price tag.
- Social risks apply when the consumer is concerned the product will cause embarrassment, place them in an unwanted social group or eliminate them from a desired social group.
- Psychological risk similar to physical is when a product threatens a customers mental well being.
- Finally time risk is when a consumer feels the product is going to cost them more time. This can be from learning to use the product, service or return policies.
A marketer must be aware of the risks a companies target market may feel in purchasing their product. Such risks can act as a barrier to purchase. Once marketers are aware of the risk simple marketing implications can be made to reduce the perceived risk. Italic can help you understand the risks that a consumer may find in your product or service when creating a marketing plan for your business.