Do Suppliers Still Have Hidden Reserves To Enhance Clients Satisfaction? Factors Affecting Perceived Risk In The Project-Type Services

Abstract

The current economic downturn is affecting innovation unfavourably and the accelerating changes of the global economy call for ongoing innovation. Successful firms seize the opportunity to maintain the competitive advantage with the help of increased spending on innovation. In general terms, innovation is evidently increasing the perceived risk of the sellers and the buyers. This is even more true in the case of services due to the bilateral performance risk and the process-like nature. The latter means that the success of a service transaction is uncertain until it is completed. As the project buyer lacks the required knowledge to complete the project, the major risk is related to the suppliers expected performance. The risk perceived by a client has a negative effect on client satisfaction and therefore might directly jeopardize the success of marketing. This is why the effective management of the perceived risk is of high importance. The key to that is in the clear knowledge of the nature of the perceived risk. So far research has given only a few answers to how the performance risk perceived in a service transaction can be handled. The author is going to present a working paper about the research launched in 2010 conveying the foregoing research results. The research is focusing on competence-based perceived risk of the projects actors. The research helps develop a conceptual model on the risk perception of the buyers. The ultimate objective of the research is to help the suppliers develop an effective risk management process.