In your opinion, do consumers experience a higher level of perceived risk when they travel by flight with children than the flight without children Justify your answer by explaining FOUR (4) perceived risks face by the consumer who took Lufthansa flight from Germany to New York Please provide an example of a consumer concern for each type of perceived risk Notes Perceived Risks When evaluating competing services, customers try to assess the performance of each service on service attributes that are important to them and choose the service that is expected to best meet their needs Perceived risk is relevant for services that are difficult to evaluate before purchase and consumption The first time user are likely to face greater uncertainty Perceived risks are divided into seven categories Functional Unsatisfactory performance outcomes Example of consumer concern Will the training course give me the skills that I need to get a better job Financial Monetary loss, unexpected extra costs Example of consumer concern Will I lose money if I invested according to the recommendations of my stockbroker Temporal Wasted time, delays leading to problems Example of consumer concern Do I have to waste my time waiting in line to have my dinner at the restaurant Physical Personal injury, damage to possessions Example of consumer concern Will I get hurt if I go skiing at this resort Psychological Fears and negative emotions Example of consumer concern How can I be sure that the aircraft won't crash Social How others may think and or react Example of consumer concern What will my friends think of me if they know that I stayed in a cheap motel in Europe Sensory Unwanted impact on any of the five senses Example of consumer concern Will the hotel bed be comfortable How might consumers handle perceived risk Seeking information from respected personal sources Relying on a firm that has a good reputation Looking for guarantees and warranties Visiting service facilities or trying aspects of service before purchasing Asking knowledgeable employees about competing services Examining tangible cues or other physical evidence Using the Internet to compare service offerings and search for independent reviews and ratings

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Posted on Sep 28, 2024

In your opinion, do consumers experience a higher level of perceived risk when they travel

by flight with children than the flight without children? Justify your answer by explaining

FOUR (4) perceived risks face by the consumer who took Lufthansa flight from Germany to

New York. Please provide an example of a consumer concern for each type of perceived

risk.

Notes:

Perceived Risks

When evaluating competing services, customers try toassess the performance of each service on service attributesthat are important to them andchoose the service that is expected to best meet their needs.

Perceived risk is relevant for services that aredifficult to evaluate before purchase and consumption. The first time user are likely to face greater uncertainty. Perceived risks are divided into seven categories:

Functional

Unsatisfactory performance outcomes
Example of consumer concern:Will the training course give me the skills that I need to get a better job?

Financial

Monetary loss, unexpected extra costs.
Example of consumer concern:Will I lose money if I invested according to the recommendations of my stockbroker?

Temporal

Wasted time, delays leading to problems.
Example of consumer concern:Do I have to waste my time waiting in line to have my dinner at the restaurant?

Physical

Psychological

Fears and negative emotions
Example of consumer concern:How can I be sure that the aircraft won't crash?

Social

Example of consumer concern:What will my friends think of me if they know that I stayed in a cheap motel in Europe?

Sensory

How might consumers handle perceived risk?

Seeking informationfrom respected personal sources
Relying on a firm that has agood reputation
Looking forguarantees and warranties
Visiting service facilities or trying aspects of servicebefore purchasing
Asking knowledgeable employees aboutcompeting services
Examiningtangible cues or other physical evidence
Using the Internet tocompare service offerings and search for independent reviews and ratings