University of Central Florida (UCF) MAR3023 Marketing Practice Exam 2

The statement is true because Vladimir's decision not to purchase the iPod shuffle is based on his belief that it cannot hold all his songs, which suggests a perception of performance risk rather than financial risk. Performance risk relates to a consumer's concern that a product will not meet their expectations in functionality or utility. In this case, Vladimir is worried that the iPod shuffle will not be able to accommodate his music library, which directly relates to how well the product performs its intended function. Financial risk, on the other hand, would involve concerns about losing money or wasting time on a purchase that could lead to financial loss. Therefore, indicating performance risk, aligns with his thought process regarding the product's capacity to fulfill his needs.