Branding is beneficial not only for companies but also for consumers. The most beneficial of that is that you can avoid risks.
Consumers have various risks when purchasing goods. For example, there are too many risks such as using money and using time. If consumers already know the brand and knowledge of the quality and value of the brand in advance, you will have a guarantee to a certain extent. Therefore, you can reduce the risk of purchasing.
For example, if you bought a brand that you have purchased before, you will feel comfortable that you will not offer bad products or services. Furthermore, as a merit of the brand, possession of a brand as a status leads to having a sense of satisfaction and superiority.
According to Professor Keller, a leading brand theorist, there are six consumer risks in purchasing behavior:
1, functional risk
If the purchased product does not fulfill the expected performance or function, it becomes a risk. There is also a risk that there is no function thought to be equipped.
2, Physical risk
It is possible that the purchased product may harm the health and the body of the user and the surrounding people. There is a risk to the body by actually using it.
3, financial risk
There is a possibility that the purchased product may not be worth the amount paid for the purchase. There is a risk that there is no loss on the amount paid.
4, social risk
There is a risk that the purchased product may cause annoyance to the surrounding people and society.
5, psychological risk
The possibility that products purchased will adversely affect mental and psychological such as regret and stress will be considered as a risk.
6, time risk
There is a risk of opportunity costs of having to look for other products if you think that you have failed for the purchased product.