Answer: Perceived risk
Explanation: In simple words, Perceived risk refers to the doubts that comes in the mind of the consumers when they ought to buy a product. This risk is high for expensive goods. It creates an uncertainty due to several factors that the buyer will choose the product.
In the given case, the company by offering extra warranty is providing an incentive to the potential customers to buy the product. Such warranty works as an assurance that there is very low chance of loss.
Hence the correct option is D.
