46. Kathy has naturally curly hair and has often been disappointed with the haircuts shehas received. When she moved to a new town, she approached her new office matesand several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on theassociated with her purchase decision. A. evokedsetB. referencegroupC. physiological

Functional or Performance risk.

Explanation:

Kathy's decision to spend a considerable effort in finding anew stylist is associated with her performance risk in respect of her purchase decision.

Performance risk is the probability that one might not get the best value from a service or transaction. The loss of value can come in product value , product failure , service value , requirement and benefit shortfall.

In order to mitigate this ,Kate has decided to make extra effort in finding a competent stylist that can give her a valuable haircut .

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