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Article Review on Retailer says it has plans to balance higher tariffs, keeps its financial goals for year By Khadeeja Safdar and Allison Prang

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Article Review on Retailer says it has plans to balance higher tariffs, keeps its financial goals for year By Khadeeja Safdar and Allison Prang
question one: There are five types of risk associated with purchase decisions, which is the most influential to consumers? There are five types of risk associated with purchase decisions: performance, social, financial, physiological, and psychological. Each risk can delay or discourage a purchase. Performance risk involves the perceived danger inherent in a poorly performing product or service. Financial risk is associated with a monetary outlay and includes the initial cost of the purchase as well as the costs of using the item. Social risk involves the fear that consumers suffer when they worry others might not regard their purchases positively. Physiological risk refers to the fear of an actual harm should the product not perform properly. Psychological risks are associated with the way people will feel if the product or service foes not convey the right image. Out of the five, which affects the consumer the most? Why?     question two: If you were in charge of an organization, which buying culture would you try to implement and why? In the Marketing textbook, it breaks down four different types of buying cultures at organizations: democratic, autocratic, consultative and consensus. In democratic cultures, everybody has a vote on what to purchase and majority wins. In autocratic cultures, one person makes the decision single-handedly. In consultative cultures, everyone gives input but one person makes the ultimate decision. Finally, in consensus cultures, everyone must agree. For me, I think consultative is the best route to go. It’s good to get insight from everyone who will use the product, but you need a final decision-maker. Otherwise, you end up either possibly sewing resentment (autocratic), taking forever (democratic) or ending up with the “what are we going to eat for dinner?” indecisiveness (consensus).

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