The perceived risks a consumer can feel

Marketing

4 July 2014

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.

  1. The functional risk is when a consumer is concerned that the product will not perform to their expectations.
  2. Physical risks arise when the product of service threatens the consumer health or well being such as vitamins.
  3. Financial risks are common in consumers when they believe the product is not worth the price tag.
  4. 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.
  5. Psychological risk similar to physical is when a product threatens a customers mental well being.
  6. 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.