Perceived risk and outcome differences in multi‐level service relationships

Abstract

Service relationships are often complex, involving multi‐level relationships. Customers can have relationships with the firm and interpersonal relationships with service personnel that vary in terms of strength and intensity. A study was designed to examine the relationship between perceived risk and type of service relationship. It also examined outcomes differences between different types of service relationships. The results suggest that consumers who have strong interpersonal relationships have the highest perceptions of category risk and the lowest perceptions of specific provider risk. The results also indicate that outcomes vary across different types of relationships. Customers who have strong interpersonal or strong person‐to‐firm relationships are less interested in alternatives, but only customers with strong interpersonal relationships are more dedicated, evidenced by greater cooperation, enhancement, identity, and advocacy.