The Effect of Functional Risk Communication on Consumer Purchase Decision. A Study of Surfline Communications Limited

Abstract

The study, 'The Effect of Functional Risk Communication on Consumer Purchase Decision. A Study of Surfline Communications Limited' investigated the essence of businesses moving from one-off transactions with customers to relationship building. In order to sustain this sort of relationship and goodwill, organisations must communicate functional risk of products and or services to their customers. That is; communicating the 'sweet and sour' information that could inform customers' decision making in order for them to be solely responsible for their choices. The aim of this study was to find out the effect of functional risk communication on consumer purchase decision. The study employed the mixed method approach (qualitative and quantitative research). One hundred (100) questionnaires (open-ended and close-ended questions) were distributed to the randomly sampled population of the study. Findings showed that majority of the sampled respondents were not affected by functional risk communication thereby signing on to the Surfline network without prior research but based on recommendation from family and friends. Also, the study found out that majority of the respondents went ahead to sign on to the Surfline network with or without functional risk communication. Lastly, it was discovered that a large section of customers did not receive prior notice about an expected challenge at the point of sale. Based on the findings of the study, the researcher suggests that organisations communicate functional risk to its customers prior to product purchase.