MARKETING MANAGEMENT AND MEASURES TO REDUCE PERCEIVED RISK IN BUSINESS: AN ANALYSIS OF INTERCONNECTION

Abstract

The research results on the interrelation between marketing management strategies and measures for reducing perceived business risk have been presented. An analysis of existing scientific literature has revealed a lack of studies concerning theoretical and methodological approaches to reducing perceived business risk. The aim of this article was to investigate the correlation between marketing management strategies and measures aimed at mitigating perceived business risk. The following methods were employed during the research: comparative analysis, synthesis, generalization, graphical representation, and economic-statistical analysis. Considering one of the objectives of marketing provision for risk-mitigation measures, which involves customer-oriented approaches, and taking into account the specific nature of the research subject, the article examines possible attitudes of organizational buyers towards perceived risk based on the expected utility from purchasing industrial goods. The article proposes a general view of the relationship between perceived risk and consumer value, modifying a well-known utility function for expected income and presenting the author’s conclusions. It was found that an organization-buyer is inclined towards risk when it gives preference (over risk) to higher product value compared to guaranteed, yet lower consumer value. For risk-neutral organizational buyers, an increase in perceived risk corresponds to an increase in consumer value. Conversely, risk-averse organization-buyers respond strongly to perceived risk and prefer products in which they are confident to avoid risk. The proposed function establishing the relationship between perceived risk and consumer value, modified to incorporate the utility function for expected income, offers strategies for implementing risk-mitigation measures aimed at reducing risk for specific groups of business-to-business (B2B) organizations in the market. For risk-averse organizational buyers, measures such as marketing research, test sales, financing through credit or leasing, which focus on risk identification and control, should be undertaken. Therefore, reinforcing marketing measures should be applied to persuade risk-averse or neutral organizational buyers of the benefits of purchasing. The proposed function depicting the dependency of perceived risk on consumer value, modified to account for the utility function for expected income and conclusions, allows for segmenting organizational buyers based on their level of consumer risk. This will be valuable for forming and implementing risk-mitigation measures within enterprises, as it enables the consideration and reduction of risks for industrial consumer goods. Further scientific investigations will be directed towards developing a methodological approach to evaluating the levels of perceived risks in online purchases.