The Homa Files

Minds are insecure for many reasons. One reason is perceived risk in doing something as basic as making a purchase.

Behavioral scientists say that there are five forms of perceived risk:

1. Monetary risk. There’s a chance that I could lose money on this.
2. Functional risk. Maybe it won’t work, or maybe it won’t do what it’s supposed to do.
3. Physical risk. It looks a little dangerous. I could get hurt.
4. Social risk. I wonder what my friends will think if I buy this.
5. Psychological risk. I might feel guilty or irresponsible if I buy this.

Source:  Repositioning: Marketing in an Era of Competition, Change, and Crisis by Jack Trout with Steve Rivkin, 2010

This entry was posted on March 10, 2010 at 7:30 am and is filed under Risk. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.