1. PERCEIVED RISK
Kunwar Atul Singh
Institute of Management Studies (FMS), BHU
MBA III Sem.
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2. 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..

3. TYPES
• Functional Risks
• Social Risks
• Financial Risks
• Physical Risks
• Time Risks
• Psychological Risks Mliag..

4.  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.
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5.  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.
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6.  Psychological Risks
 Consumers also face questions about whether a
given purchase is the morally right choice.
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7. IDENTIFYING A PERCEIVED RISK
Security / Warranty
Hidden Extra Cost
Reputation / Brand
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8.  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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9.  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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10. COUNTERING PERCEIVED RISKS
Reputation
Selling Style
Attention Mliag..

11. Mliag..