I am sure most will agree that an online business that does not have to deal with consumer perceived risk is few-and-far-between. Every day, people put their trust into a company and expect to receive what they paid for. Whether it is getting your product on time, in good shape, as advertised, or simply to know that your personal information is protected, a business must take into consideration the ethical routine in the information they hold. This blog will express why I feel combating perceived risk is crucial for the longevity of your firm.
To start off, let’s look at a company who seems to be using a solid foundation for this universal problem. A few weeks ago, I was watching TV and a commercial popped up for Pizza Hut. They mentioned how people can order pizza online. I decided to test out this system. I went to Pizzahut.com, followed the directions for ordering online – and forty-five minutes later heard a knock on my door. This knock was not arbitrary – this knock was from a pizza delivery guy conducting business because I felt confident enough in Pizza Hut’s system to place an online order.
Though there are several framework models for perceived risk, I will address only two. Financial risk and source risk. Financial risk usually comes into play when the consumer wonders to themselves if this product is worth the price they must pay. This can sometimes be offset with coupons, special discounts, and incentives-to-buy. Pizza Hut’s https://quikorder.pizzahut.com/phorders2/deals.php does a fine job of offering special deals for your local area for ordering online. If people can save a few dollars on a pizza by ordering online, why wouldn’t they? A few dollars on a $20 pizza is quite a margin.
Next, Pizza Hut tackles the problem of source risk. This will sometimes occur when the customer does not feel confident about the firm itself and wonders of the reliability of the company. Pizza Hut confronts this indirectly by having brick-and-mortar establishments. Research shows that people are more likely to trust “click-and-mortars” than pure players because they feel like if a problem arises, they can go into the local branch and solve it. Furthermore, Pizza Hut’s site has a “contact us” and a clear privacy policy aiding to the settling of potential customers worries.
So, in my opinion, Pizza Hut uses a great system to deal with perceived risk when it comes to pizza lovers. Though they gain a strong advantage because of their physical locations, they still minimize financial and source risk with the techniques listed above. And though I had to test the system out for myself, I will not hesitate next time to place an order online.
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6 comments:
What a strange and exciting feature for a pizza place! I think having both physical and online presence reassures consumers of company credibiltiy while providing options to the consumer for ordering. And you mentioned that incentives were provided for ordering on the website? I'll have to try it out sometime!
I did not know that you can order pizza online on pizzahut.com. Like you mentioned, I don not think that pizzahut.com has a source risk at since people know that there are physical stores everywhere. I think I have to try this delivery service prett soon!
I didn't know either that you can order pizza online on pizzahut.com. But I think it is really a good thing, since everybody knows the pizza from the physical stores it makes it very easy for them to order their favorite pizza online!
I didn't know either that you could order online at pizza hut. This is something that is very interesting for a pizza place to do. Kind of different and curious to how it works better than just calling. But I think they do a great job in limiting risk on their website, because not only is it something they want, but something they eat. People want to make sure what they are paying for is worth and I think pizza hut provides the right tools for them to trust ordering a pizza online. Definitely an interesting concept!
Great choice, and it made me hungry. Having the ability to securely order pizza online could be the greatest breakthrough in mankind since the wheel! I have actually had someone in a different state order me a pizza from this.
Plus, it can give me a whole new level of laziness when I am too lazy to pick up the phone and order.
I like how you described the perceived risk and I also thought it was a strange way to order a pizza. Its good to know if I wanted to order pissa on the internet I could. I like options.
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