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Friday, 14 September 2018

Consumer Initiated Strategy

On their own part, consumer develop unique strategies for reducing perceived risk. These risk- reduction strategies enables consumers to act with increased confidence in making product decisions, though the outcome or Consequences of such decisions may still be uncertain.

We have the following strategies used by consumers in handling perceived risk.

(1) To reduce percieved risk,consumers seek information; consumers seek information about the product and the product class through words of mouth communication ( from friends and families, from people whose opinions are valued, from stores, and from sales people) and from Mass media communication (such as newspapers and magazines, consumer Reports, testimonials and endorsements).

It has been shown through a study that consumers spend more time thinking about that choice, and research for more information regarding the products choice, when they associates a high degree of risk with the purchase. This strategy is used because the more information the consumer has regarding the product and product strategy, the more predictable the probable consequences, and thus the lower the perceived risk.

 Having known that consumers seek out information especially from those who are who already product users,astute marketers try to  influence word to mouth for communication in their advertisement. For instance, the market can use advertisements showing group discussions for possible product risk and over riding rewards by people representing the target market. This may reassure high risk perceivers to buy the products. Zenith used this strategy effectively in introducing colour television. To remove the initial doubt about the risk involved ads showed informal peer group discussion of the product.

(2) To reduce perceived risk; consumers become brand loyal you callin consumers can avoid risk by remaining loyal to a particular brand with which they have been satisfied rather than purchasing new or untried product. A study of the acceptance of a new food product revealef thats high risk perceivers were more likely to be loyal to their brand and less likely to purchased the new product.

(3) To reduce Risk consumer select by brand image; where consumers have not had any expeeience with a new product,what they do is to "trust" a favoured, popular or well known brand name. Consumers often think or believe that's well known brands are better and are worth  buying for the reassurance offeref of quality, dependablility, performance, and service. In this case,marketers  promotional effort supplements the perceived quality of their products in helping to build and sustain a favourable brand image.

(4) To solve the problem of perceived risk, consumer rely on Store image. If consumers have no other information about a product, they will trust the judgment of the merchandise buyerd of a reputable store and will accordingly the depend on them to have made careful decisions in selecting products for resale. For example, those who wants to buy at the Eastern shop in a  Enugu will believe that the shol is selling high quality product. Store image also imparts the implication that the product being sold in the reputable shop have been tested, and the reassurance of service, return privileges, and adjustments in case of dissatisfaction.

(5) Consumers buy the most expensive model or brand in other to reduce risk; when in. Doubt, customers may feel  that the most expensive model is probably the best in terms of quality.  What they do here is to equate price with quality.

(6) Consumers seek reassurance from the market or others to reduce risk; customers who are uncertain about the wisdom of a prayer. Choice seek reassurance through money back guarantees, government and privates laboratory test results, warranties, and prepurchase trial.

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