Pressure to perform as others wait behind them leads consumers to ...

[vHAUNG6011]

Pressure to perform as others wait behind them leads consumers to opt out of using a self-checkout. This is an example of which kind of perceived risk?
 A) financial risk
  B) performance risk
  C) social risk
  D) psychological risk
  E) physical risk

Question 2

Briefly explain and discuss the five types of utility. Which type(s) of utility is(are) the most important and why?

[mfedorka]

Answer to Question 1

C

Answer to Question 2

The five types of utility are:

1. Form Utility-Products high in form utility have attributes or features that set them apart from the competition.
2. Time Utility-Products high in time utility are available when customers want them.
3. Place Utility-Products high in place utility are available where customers want them, which is typically wherever the customer happens to be at that moment or where the product needs to be at that moment.
4. Possession Utility-Possession utility deals with the transfer of ownership or title from marketer to customer. Products higher in possession utility are more satisfying because marketers make them easier to acquire.
5. Psychological Utility-Products high in psychological utility deliver positive experiential or psychological attributes that customers find satisfying. Conversely, a product might offer exceptional psychological utility because it lacks negative experiential or psychological attributes.

One type of utility is not necessarily more important than the others. In reality, all five types are complementary and overlap to a great degree. One could argue that form utility is the most important, however, because customers tend to choose products that offer certain features. For routinely purchased products (gasoline, bread), time and place utility are likely to be more important. For unique types of products (vacations, luxury goods), psychological utility might be relatively more important.

[vHAUNG6011]

Thank you

[mfedorka]

Happy to help you