ENHANCING TRUST OR REDUCING PERCEIVED RISK, WHAT MATTERS MORE WHEN LAUNCHING A NEW PRODUCT?

Abstract

Using a collection of data among 490 participants from different companies in the field of medical engineering market, we contribute to the role of contact intensity by a business partner when launching new products by introducing trust as a mediator to the concept of perceived risk reduction to enhance the relationship commitment. The findings show that the common concept of risk reduction to enhance the relationship commitment is overrated. In detail, the results show first, that the influence of trust on the relationship commitment is decisive instead of reducing perceived risk by the customer. The contact intensity is only important to enhance trust which influences the relationship commitment in a positive way. Hence, managers should concentrate on the development of trust and not on the reduction of perceived risk of the customer. Second, our findings demonstrate that the attitude whether the customer is averse of affine towards innovations has no influence on the relationship between contact intensity and relationship commitment. This is obviously the opposite of the findings of most researchers in literature who usually state customers need different contacts of the seller to purchase a new product depending on their attitude towards innovations.

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