Page 194 - Marketing Management

ANALYZING CONSUMER MARKETS | CHAPTER 6 171

things: (1) the intensity of the other person’s negative attitude toward our preferred alternative and
65
(2) our motivation to comply with the other person’s wishes. The more intense the other person’s
negativism and the closer he or she is to us, the more we will adjust our purchase intention. The
converse is also true.
Related to the attitudes of others is the role played by infomediaries’ evaluations: Consumer
Reports, which provides unbiased expert reviews of all types of products and services; J.D. Power,
which provides consumer-based ratings of cars, financial services, and travel products and services;
professional movie, book, and music reviewers; customer reviews of books and music on such sites
as Amazon.com; and the increasing number of chat rooms, bulletin boards, blogs, and so on where
people discuss products, services, and companies.
Consumers are undoubtedly influenced by these external evaluations, as evidenced by the success
of a small-budget movie such as Paranormal Activity, which cost only $15,000 to make but grossed
over $100 million at the box office in 2009 thanks to a slew of favorable reviews by moviegoers and
online buzz at many Web sites. 66
The second factor is unanticipated situational factors that may erupt to change the purchase
intention. Linda might lose her job, some other purchase might become more urgent, or a store
salesperson may turn her off. Preferences and even purchase intentions are not completely reliable
predictors of purchase behavior.
A consumer’s decision to modify, postpone, or avoid a purchase decision is heavily influenced
by one or more types of perceived risk: 67
1. Functional risk—The product does not perform to expectations.
2. Physical risk—The product poses a threat to the physical well-being or health of the user
or others.
3. Financial risk—The product is not worth the price paid.
4. Social risk—The product results in embarrassment in front of others.
5. Psychological risk—The product affects the mental well-being of the user.
6. Time risk—The failure of the product results in an opportunity cost of finding another satis-
factory product.

The degree of perceived risk varies with the amount of money at stake, the amount of attribute
uncertainty, and the level of consumer self-confidence. Consumers develop routines for reducing
the uncertainty and negative consequences of risk, such as avoiding decisions, gathering informa-
tion from friends, and developing preferences for national brand names and warranties. Marketers
must understand the factors that provoke a feeling of risk in consumers and provide information
and support to reduce it.

Every year there are hit movies,
such as Paranormal Activity, that
ride a wave of buzz and favorable
consumer word of mouth to
box-office success.