Which Risk Factor Motivate Some Customers to Buy Extended Warranty

question 76

Multiple Choice

Which risk factor motivate some customers to buy extended warranty for a set of TV?

• A)Social risk
• B)Performance risk
• C)Physiological risk
• D)Financial risk
• E)Perceived risk

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Definitions:

Ethnocentric Actions

Behaviors driven by the belief that one's own cultural group is superior to others.

Social Facilitation

An improvement in the performance of well-learnt/easy tasks and a deterioration in the performance of poorly learnt/difficult tasks in the mere presence of members of the same species.

Free-rider Effect

A phenomenon where individuals benefit from resources or services without contributing to the cost, common in public goods scenarios.

Public Goods Dilemma

A situation in economics where individuals must decide whether to contribute to a public good that benefits all, even if contributing comes at a personal cost, leading to challenges in provisioning and maintaining public goods.