Question

Kathy has naturally curly hair and has often been disappointed with the haircuts she has received. When she moved to a new town, she approached her new office mates and several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on the __________ associated with her purchase decision.

Answer 1

Answer: Performance risk

Explanation:

Performance risk can be defined as the concern or risk that a person has when acquiring service and that it does not work effectively. A person may have a concern of not knowing if what he is going to acquire is going to work in the desired way, this is the fear presented by Kathy. Kathy has already had a bad experience regarding her hair, where she has not received the best service in terms of haircuts. After she moved to a new city, she started researching where it can get a good haircut. While it is true that she may find someone who does it well, Kathy still has concerns that it may not look good because of her past experiences.