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Perceived Risk - explained through Whirlpool case

The Whirlpool Corporation is anxious to provide a wealth of information about its products, including direct comparisons against its major rivals, and offers the strongest warranties and customer service department in its industry. The firm has explained its policies by pointing to the fact that customers tend to experience perceived risk in purchasing the types of products that it sells, and it is simply trying to help the consumer reduce that tension. What is perceived risk? What factors tend to create and/or increase it? Why does Whirlpool use these marketing tools to deal with the problem of perceived risk?

Solution Summary

The Whirlpool Corporation is anxious to provide a wealth of information about its products, including direct comparisons against its major rivals, and offers the strongest warranties and customer service department in its industry. The firm has explained its policies by pointing to the fact that customers tend to experience perceived risk in purchasing the types of products that it sells, and it is simply trying to help the consumer reduce that tension. What is perceived risk? What factors tend to create and/or increase it? Why does Whirlpool use these marketing tools to deal with the problem of perceived risk?

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