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Risks associated with hesitation of the consumer make a purchase

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1) Explain the five perceived risks associated with hesitation of the consumer to make a purchase. Include an example of each to support. How might a marketer mitigate each of these through their marketing efforts?

2) Explain the role of market segmentation including the criteria that can be used in ultimately identifying the target market. Why is it necessary to identify a target market? How does this aid the marketer in better differentiating their products to the consumer? How does this entire process help the consumer with their buying decisions?

3) Identify the steps in the cognitive decision-making process, including what occurs at each stage, incorporating an example of a product that you may have purchased recently. How might this information be relevant and important to a marketer from the standpoint of how they would market to consumers at each stage?

4) Describe how the three types of decision making, including cognitive, habitual, and affective, impact the overall decision-making process of the consumer. Include an example of a product that would fall under each of these purchases. How might a marketer reach consumers involved with each of these decision- making types?

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1) Explain the five perceived risks associated with hesitation of the consumer to make a purchase. Include an example of each to support. How might a marketer mitigate each of these through their marketing efforts?

The five perceived risks that are associated with consumers' and their hesitation in making purchases include functional risks, physical risks, financial risks, social risks, and psychological risks. These risks will have a detrimental impact on whether the consumer is willing to make a purchase or avoid making the purchase. Functional risks involve whether the consumer believes that the purchase will be functional in regard to its durability and ability to serve the purpose that the person purchased the item for. To mitigate this risk, consumers will often seek to ensure that a warranty is offered along with the purchase as it will allow the purchaser the ability to seek a return if the item no longer functions before the warranty ends. Physical risks are associated with whether the consumer believes that the item will result in any harm to them physically as a result of any defect or problem with its functionality.

Financial risks are the most significant issue for many consumers as many people want to budget their money to prevent overspending on items. Therefore, consumers will often seek to obtain the best deal possible. Social risks are predicated upon what a person's social circle, which includes friends and family, think of the purchase. Consumers will often seek advice from their friends or family before making a significant purchase to ascertain whether they liked the product or not. Psychological risks are associated with the affective emotions that are tied to the purchase wherein the person will either have positive or negative emotions associated with the purchase in the future.

To attempt to mitigate issues associated with these risks, companies should engage in competitive pricing strategies, produce quality products that garner word-of-mouth support, and market these products toward ...

Solution Summary

The five perceived risks associated with hesitation of the consumer to make a purchase are examined.

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