Question

Ice2

1) Think about a business and reasons why people might not go in terms of perceived risks?

2) If you were a consultant for a garage what advice would you give a garage owner, in regards to potential risks under the functional, financial, temporal, physical, psychological, social, and sensory?

3) What you should do to reduce those risks?

Answer 1

1)Perceived risk is the uncertainty a consumer has when he is buying a product.Take example of detergent business

Detergent business is having quality department to check the possible deviation in terms of outcome.Perceived risk can be stains are not taken out by the detergent but we have quality department to check the product before it is shipped to the consumer.

2) As the consultant to garage owner following advice would be given to garage owner-

Functional risk - there might be risk related to operation related to machinery.Machinery not performaning up to the mark we need to have the garage that is ISO 9001-2015certified

Financial risk - at the start of business it might be possible that turnover might be less

Temporal risk refers to the time .the risk that is based out if time .

Physical risk any risk that pertains to the tangible part that is machinery etc

Psychological risk any thing refers to the psychology of consumers.

Social risk any risk that refers social acceptance of the garage .social acceptance means consumer acceptance.

Sensory risk refers to the risk that pertains to five sensory organs .example the scent of second hand car not bearable to garage owner .

3)Reduction of risk--

Identification of risk

Brainstorming all potential risk

Make clear who is responsible for what

Communication about risk

Consider the SWOT analysis

Fully understand the reasons and impact of risk.

Priortize the risk.