MKT 100 Lecture Notes - Lecture 50: Renting, Financial Risk

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Anthony Bonato

Document Summary

In that case, they believe it doesn"t matter how much information they gather; if they make a wise decision, it isn"t to their credit, and if they make a poor one, it isn"t their fault. Three types of risk associated with purchase decisions can delay or discourage a purchase: performance, fi nancial, and psychological. The higher the risk, the more likely the consumer is to engage in an extended search. Performance risk involves the perceived danger inherent in a poorly performing product or service. An example of performance risk might be the possibility that your cell phone battery would go bad when you were waiting for a call to set up a job interview. Financial risk is risk associated with a monetary outlay and includes the initial cost of the purchase, as well as the costs of using the item or service.