Question

Ragu, a spaghetti sauce maker, has decided to launch its most popular sauce flavors in a small pouch format that is more convenient to use. when they choose to launch their most popular sauce flavors, which are “tried and true”, instead of new flavors, ragu is seeking to minimize consumers' perception of ________.

Answer 1

The company is trying to reduce the functional risk to the consumer. When the consumer purchases a smaller pouch of sauce instead of the big jar, they're likely to pay a premium for the smaller amount, but the lowered functional risk involved in not liking a small pouch (and having to discard it) as compared to a 30-ounce jar will be worth the extra price paid.