What does functional risk involve?

Functional risk refers specifically to the concern consumers have about whether a product will perform its intended function or fulfill its expected purpose. When consumers assess functional risk, they are contemplating the likelihood that a product will not achieve the desired outcome or result, which can lead to dissatisfaction.

For instance, if someone is considering purchasing a new kitchen appliance, they may worry about whether it will effectively cook food as advertised. If it fails to do so, the consumer has not only wasted their money but also time and effort, leading to a sense of frustration. This is the essence of functional risk, centering on the performance aspect of the product.

In contrast, other types of risks mentioned in the other options address different concerns. Psychological effects relate to the emotional aspects of using a product, potential injuries focus on safety concerns, and financial losses deal with economic implications—not achieving the intended result from a product. Understanding functional risk is crucial for marketers and businesses, as they need to convincingly demonstrate that their products will perform effectively to mitigate these concerns for potential customers.