CELL PHONE MINI CASE: Hype Mobile is a Korean cellular phone manufacturer that has significant market share in the United States and was the first to introduce camera phones to the US market.Its most recent advertising campaign showed three of its phone models and three people in different clothing fashions and asked readers to match the phone with the caller. In order to reach its hip, young, always-on-the-go target market, Hype placed these ads in bathroom stalls in trendy metropolitan night clubs. Mobile Power, Hype's leading competitor, tried to downplay Hype's trendy reputation by offering consumers a 7-day money-back customer satisfaction guarantee and a 2-year warrantee on its phones, advertising its products as "mobile tools that are more than just hype."
-In the CELL PHONE MINI CASE,Mobile Power's warrantee is an attempt to help mitigate consumers' perception of ________.

Question

Quizplus · Accepted Answer

Mobile Power's warrantee is aimed to mitigate consumers' perception of functional risk, which is the risk that the product will not perform as expected or will fail to meet the consumer's needs. By offering a 2-year warrantee, Mobile Power is trying to assure consumers that their phones will work properly and satisfy their needs for a long time. Financial risk is the risk of losing money or making a bad investment, psychological risk is the risk of feeling disappointed or embarrassed, social risk is the risk of negative reactions from others, and physical risk is the risk of harm or injury. None of these risks are directly addressed by Mobile Power's offer of a warrantee.

CELL PHONE MINI CASE: Hype Mobile Is a Korean Cellular