PERFORMANCE RISK PERCEPTION IN SERVICE PROJECTS

Abstract

This research investigates the role of intangible resources that aim at reducing the buyer’s perceived risk, enhancing his value and satisfaction, and thus lead to the acceptance of the provider’s offer and the success of the project. The focus is on how intangible assets create customer value in service projects by decreasing perceived risk. This research is the second wave of a research programme being launched in 2008. A review of the area of perceived risk and value reveals an absence of sources that explicitly study and integrate the concept of risk-value interrelationship. By our definition, performance risk derives from goals. With particular projects, the goal is so complex that performancerelated risks are very high. Risk-reducing communication has to be based upon a continuous, phasespecific and clear message on problem solving competence of both sides. Qualitative minifocus group discussions have been conducted at actors of project market. The industry profile of the 180 respondents included ad hoc market research, construction industry, IT systems, marketing-communication projects, consulting, business tourism, web design, business trainings etc. Respondents’ task was to discuss six thesis-like statements based on their project-experience. The verbatim transcripts of the discussions have been evaluated by content analysis. The findings affirmed that especially large projects are unique therefore the ad hoc task has to be divided into routine-like phases in order to be able to cover the risk. Even if offers are highly standardized in numerous industries client’s problem is always unique. There are new services that even the supplier lacks knowledge about, consequently this is a learning process for the supplier as well. At numerous firms risk reducing is systematic and standardized. Clients seek the extension of immaterial competence: expect certificates and/or charge third (neutral) parties. Client’s competence is a leverage, but if it fails a communication- facilitator has to be involved in the process. Frequency of communication is risk reducer in itself.