Perceived Risk Analysis

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  • Topic: Risk, Finance, Social risk management
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  • Published : April 17, 2013
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PERCEIVED RISK ANALYSIS OF FAST MOVING CONSUMER GOODS (FMCG): SOAP & CONSUMER DURABLE GOOD: TELEVISION

PRESENTED BY :
SOMEDATTA BANERJEE (11/MBA/08)
RANJITA UPPAL (11/MBA/21)
SANDEEP KUMAR SHAW (11/MBA/23)
NATUS DOMINE LADIA(11/MBA/24)
Acknowledgement.

It would have not been possible for us to accomplish this project without the help of some personalities. On this note, we would first like to extend our sincere gratitude to our faculty Prof.Kaushik Mondal for giving us this opportunity to perform this task which has undoubtedly imparted upon us the knowledge about the topic, enhance our skills and has given us the confidence and strength to perform similar projects or analysis in the future. Secondly, we are highly indebted to Mr. SukantaMaji for guiding and giving us his full support throughout the journey of our project. We would also take the opportunity to thank all our respondents who have given us their thoughts without which this project would have not been viable. Lastly we would thank all those people who have helped us in every possible way towards making this project a success.

INTRODUCTION
Purchasing a product has never been an easy task, having said so this does not mean that a person has limited purchasing power capability or no purchasing power at all. Difficulties may still arise before a person purchases a product even if there is purchasing power and that difficulty comes in the form of uncertainty or a risks. Uncertainty or risk arises when a person thinks about the performance and the satisfaction that can be derived from using the product. Thus, in the marketing sphere a theory known as “Perceived Risk” is come to light. Perceived risk maybe defined as the consumer’s level of uncertainty regarding the outcome of a purchase decision.It can also be regarded as the negative or unexpected changes a consumer fears may occur as a result of making the wrong purchase decision. Based on the definition, perceived risk maybe classified into the following six categories: 1. FUNCTIONAL RISK.

2. FINANCIAL RISK.
3. PSYCHOLOGICAL RISK.
4. PHYSICAL RISK.
5. SOCIAL RISK.
6. TIME RISK.

1. Functional Risk: Each and every product has some features which the customers expect. When this feature does not meet the expectations of the customers then it is termed as a functional risk. In other words, functional risk may be termed as the fear that a person has in regards to the performance of the features of the product or the uncertainty that the service of the product is not delivered after the product is purchased.

2. Financial Risk: Financial risk is the risk that arises when a consumer thinks that the utility of the product does not match the price that has been paid for the product. Financial risk is mainly associated with long term products and which has high financial involvement.

3. Psychological Risk: The phase that a customer devotes his/her time and mind before buying a product with a hope that the product will provide satisfaction and meet the customer’s expectations. However, if using the product does not meet the expectations then a kind of risk is involved. This may be referred to as psychological risk.

4. Physical Risk: A thought or a risk a person fear that by using the product may cause harm or hurt the physical being of a person or a fear that the product may be hazardous to health . This type of risk is referred to as Physical risk.

5. Social Risk: A fear in the customer’s mind that by using the product it might bring social embarrassment or social degradation to him/her may be referred to social risk. Social risk may also be referred to as the fear that a customer has by using the product that does not match with the standard in the society.

6. Time Risk: When a person invests his/her time before buying the product and if after buying the product...
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