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Objective – The purpose of this paper is to have a revision on customer perceived value and main components of customer value. Methodology/Technique – This study was conducted to address following problem. The problem is; satisfied customers may not return to the firm and spread positive word-of-mouth communications to others despite of having customer satisfaction in a firm. Whereas customer value can help to build trust and causes willing to commit long-term relationship with a firm. Thus, customer perceived value is discussed by offering a review on the importance of customer perceived value, and its main components. Findings – The paper finds out, in spite of having customer satisfaction, the firm does not deliver what is exactly value in the mind of customer. Therefore, by offering desired value to the customers, long-term relationship gained which is the result of customer loyalty. Novelty – This revision attempts to makes more clarification on customer perceived value as a foundation stone to the success of buyer-seller relationships. Paper type: Conceptual Paper
ISSN 2289-8506 © 2015 GATR Enterprise. All rights reserved.
Global Journal of Business and Social Science Review
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GJBSSR, Vol. 1 (2), January-March 2015: 632-640
ISSN 2289-8506
A Review on Customer Perceived Value and Its Main
Rasoul Asgarpour1*, Abu Bakar A. Hamid2, Zuraidah Binti Sulaiman3
1 PhD Candidate, Johor Baharu, Malaysia
2 Professor, Kuala Lumpur, Malaysia
3 Dr., Johor Baharu, Malaysia
Objective The purpose of this paper is to have a revision on customer perceived value and main
components of customer value.
Methodology/Technique This study was conducted to address following problem. The problem is;
satisfied customers may not return to the firm and spread positive word-of-mouth communications to
others despite of having customer satisfaction in a firm. Whereas customer value can help to build trust
and causes willing to commit long-term relationship with a firm. Thus, customer perceived value is
discussed by offering a review on the importance of customer perceived value, and its main components.
Findings The paper finds out, in spite of having customer satisfaction, the firm does not deliver what
is exactly value in the mind of customer. Therefore, by offering desired value to the customers, long-
term relationship gained which is the result of customer loyalty.
Novelty This revision attempts to makes more clarification on customer perceived value as a
foundation stone to the success of buyer-seller relationships.
Paper type: Conceptual Paper
Keywords: Customer Perceived Value, Customer Value, Price, Product Quality, Service Quality
1. Introduction
Delivering superior customer value is an essential strategy for firms to gain competitive
advantage and long term success (Woodruff, 1997; Parasuraman, 1998). In addition, customers
make purchasing decisions based on perceived value, or the degree to which their needs and
expectations about product quality, service quality, and/or price are satisfied (Duchessi, 2004).
With an understanding of a company’s mission, goals, and strategies and of its customers’
needs and expectations, the company can develop a value proposition for delivering superior
value to its customers. This action will allow the company to attract new customers, retain
existing customers, and deliver significant profits. If a company maximizes value for its
customers, success follows (Zineldin, 2006).
* Paper Info: Revised: December, 2014
Accepted: January, 2015
Corresponding author:
Affiliation: Johar Bahru, Malaysia
Rasoul Asgarpour, Abu Bakar A. Hamid & Zuraidah Binti Sulaiman
GJBSSR, Vol. 1 (2), January-March 2015: 632-640
2. Customer Perceived Value
Customer perceived value (CPV) is identified by terms of value (Monroe, 1990; Zeithaml,
1988) or customer value (Butz Jr & Goodstein, 1997). Zeithaml (1988) defines CPV as "the
consumer's overall assessment of the utility of a product based on perceptions of what is
received and what is given" (p. 14). CPV determination process is clearly presented from the
definition. CPV is a result from the consumers' pre-purchase perception (expectation),
evaluation during the transaction (expectation vs. received), and post-purchase (after-use)
assessment (expectation vs. received).
Expectation is also used in the customer satisfaction literature and is defined as
"predictions made by consumers about what is likely to happen during an approaching
transaction or exchange" (A Parasuraman, Zeithaml, & Berry, 1988). In the service literature,
expectation is defined as "desires or wants of consumers, i.e., what they feel a service provider
should offer rather than would offer"(A Parasuraman, et al., 1988). From the post-purchase
aspect, Butz and Goodstein (1997) define customer perceived value as "the emotional bond
established between a customer and a producer after the customer has used a salient product or
service produced by that supplier and found the product or provide an added value" (p. 63).
Moliner et al. (2007) define customer perceived value as "a dynamic variable that is also
experienced after consumption, It is necessary to include subjective or emotional reactions that
are generated in the tourist" (p. 199). Woodruff (1997) defines customer perceived value from
pre-purchase, transaction, and post purchase aspect that "customer value is a customer's
perceived preference for an evaluation of those product attributes, attribute performances, and
consequences arising from use that facilitate (or block) achieving the customer's goals and
purposes in use situations" (p. 142).
Moreover, customer perceived value involves a discrepancy between the received benefits
and sacrifices. McDougall and Levesque (2000) define perceived value as "the results or
benefits customers receive in relation to total costs which include the price paid plus other costs
associated with the purchase" (p. 3). The benefits include customers' desired value. The
sacrifices include monetary and non-monetary (time, alternative products or alternative brands
and self experiences) sacrifices (Dodds, Monroe, & Grewal, 1991).
Moliner et al. (2007) view value as the perceived worth in functional value of goods or
service quality and price, emotional value of feeling, and social value of social impact from
self-experiences and other alternatives. Anderson et al. (1992) view value in business markets
as "the perceived worth in monetary units of the set of economic, technical, service and social
benefits received by a customer firm in exchange for the price paid for a product, taking into
consideration the available suppliers' offerings and prices (p. 5). Anderson et al. (1992) consider
economic, technical, service, and social constructs as benefits as well as price paid and
suppliers' offerings and prices as sacrifices.
And finally, Gale et al. (1994) defines customer value as "market-perceived quality
adjusted for the relative price of (the seller's) product" (p. xiv). In line with Gale et al. (1994),
Monroe (1990) defines CPV as "buyers perceptions of value represent a trade off between the
quality or benefits they perceive in the product relative to the sacrifice they perceived by paying
the price" (p. 46). Furthermore, as the other unanimous definition, Gale et al. (1994) and Rust
et al. (2004) posit that value is the ratio between customer's perceived quality earned and price
(monetary and non-monetary) paid.
The Importance of Customer Perceived Value
Bowen and Shoemaker (2003) state that satisfied customers may not return to the firm and
spread positive word-of-mouth communications to others. One of the reasons is that the firm
does not deliver what customers need or want (Roig, Garcia, Tena, & Monzonis, 2006).
Woodruff (1997) further identifies that customer satisfaction measurement without fulfilment
of customer perceived value can not really meet the customer's expectations. It means offering
real value to customer should be one of the most important goals of a company. Thus, delivering
superior value to customer is building the firms' competitive advantage (Ulaga and Chacour,
2001; Lee and Overby, 2004).
Rasoul Asgarpour, Abu Bakar A. Hamid & Zuraidah Binti Sulaiman
GJBSSR, Vol. 1 (2), January-March 2015: 632-640
Marketing exists to deliver more value to customers as well as build a long-term and
mutually profitability relationship with customer (Kotler, 2005). Value is the foundation stone
to the success of buyer-seller relationships (Lemon, Rust, & Zeithaml, 2001). If a firm's
products or services do not meet the customer's needs and wants, the marketing strategy is
defective. Customer value can reduce uncertainty and help in building trust and result in willing
to commit long-term relationship with a firm (Kim et al., 2006; Moliner, Sanchez et al., 2007).
Therefore, by offering more value to the customers, long-term relationship gained which is the
result of customer loyalty.
In fact, the keys to success in business world are the ability to understand what constitutes
value in the minds of customers and the ability to continually deliver that value better than other
competitors (Duchessi, 2004). Moreover, as Barnes (2001) states, a client will be willing to buy
a product or service when a commercial relationship generates value for a client. A study by
Zeithaml and Bitner (1996) shows that clients identify value in different ways: (1) What the
customer wants from a product or service. (2) Low price. (3) Quality/price correlation. (4)
What the customer gives up in relation to what he or she gets.
Therefore, as a conclusion, according to the statements made by Duchessi (2004) and
Zeithaml and Bitner (1996) in above, product quality, service quality and price are main
antecedents of customer perceived value. In addition, as woodruff (1997) mentioned, customer
satisfaction measurement without fulfilment of customer perceived value can not really meet
the customer's expectations which emphasizes the effect of customer perceived value as a
complementary for acquiring obtaining customer satisfaction.
Components of Customer Value
The basic components of customer value are product quality, service quality, and price
(Duchessi, 2004). Regarding to basic components of customer value, Duchessi (2004) formed
those components into the Value Cube. The cube suggests that companies can increase value
by meeting or exceeding customers’ expectations along any one, or all, of these dimensions.
Companies deliver innovative, or breakthrough, customer value when they make a quantum
leap along all three dimensions simultaneously.
The Value Cube applies to every type of business. Product-producing companies make
tangible products, can inventory their output, have generally low customer contact, and are
capital-intensive. Whereas, service-producing companies offer intangible products, cannot
inventory their output, have high customer contact, and are labor-intensive. The classic
distinctions between these types of companies are not so clear because every product is
associated with some service and every service has a tangible component. For example, the
delivery and installation of a refrigerator includes delivery during a certain time window,
descriptions of operation and maintenance procedures, and a high amount of customer contact.
Similarly, the bill that follows a visit to a physician’s office is a tangible item that can be
inventoried and involves little customer contact during its preparation.
A company’s value proposition is a strategy about how it expects to deliver value to
customers along the Value Cube’s various dimensions (Duchessi, 2004). Companies can define
customer value in an equation as product quality plus service quality divided by price offered
by Duchessi (2004):
𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑉𝑎𝑙𝑢𝑒 = 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝑄𝑢𝑎𝑙𝑖𝑡𝑦 + 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝑄𝑢𝑙𝑖𝑡𝑦
This equation portrays the concept of customer value only; as a result, it does not reduce
customer value to a scalar quantity. Thus value is a bundle of product and service benefits for
a price. Companies that offer a unique value proposition will be successful. Successful
companies offer an imaginative combination of various product and service benefits at prices
that win and retain customers. The most successful companies offer radically superior value
Rasoul Asgarpour, Abu Bakar A. Hamid & Zuraidah Binti Sulaiman
GJBSSR, Vol. 1 (2), January-March 2015: 632-640
that is based upon quantum leaps in product and service quality at the lowest prices. Duchessi
(2004) states companies can increase value using one or more of the following strategies:
As the first strategy, they can decrease the denominator by reducing prices, leaving product
and/or service benefits constant. As the second strategy, they can enlarge the numerator by
increasing any of the product and/or service benefits, leaving prices constant. Or they can
implement both of previous strategies: improve the product and/or service benefits and lower
prices simultaneously.
According to prior statements, customers make purchasing decisions in terms of satisfied
needs and expectations about product quality, service quality, and price. Thus product quality,
service quality, and price as basic value ingredients are emphasized in all of the statements so
far such as Lemon et al. (2001), Zeithaml and Bitner (1996), and Duchessi (2004). In addition,
as customer loyalty can be defined as the personal identification felt by the client in regard to
the performance of a product or service, and how this feeling drives the client’s behaviour
(Barnes, 2001). Therefore, it can be concluded that, customer satisfaction and loyalty is closely
related to performance which is having the right product or service, at the right price.
Product Quality
Product quality is the core concern in purchasing decisions. Product quality and service quality
are of the same importance in affecting customer satisfaction (Parasuraman, Zeithaml, & Berry,
1994). However, because customers are unable to see the actual product in an online shopping
context, their decisions are based on expectations about product quality rather than certain
knowledge. Satisfaction occurs when the product quality is greater than initially expected. After
consumption, each customer evaluates the quality of the purchased product and updates his or
her expectations about the quality of future purchases (Athanassopoulos, 2000; Hellier,
Geursen, Carr, & Rickard: 2003). Thus, product quality is a key factor affecting shopping
satisfaction, especially in maintaining long-term customer relationships.
According to Garvin (1983), perceived product quality is the customer's judgment about
the superiority or excellence of a product. For both online and off-line shoppers, perceived
product quality could be a key factor, especially in maintaining long-term customer
relationships (Snoj, Korda, & Mumel, 2004; Petre, Minocha, & Roberts, 2006). Perceived
product quality plays a crucial role affecting purchasing choices (Brucks, Zeithaml, &Naylor,
2000). Similarly, many previous studies suggest that perceived product quality is positively
associated with perceived value (Sebastiane1Ii & Tamimi, 2002; Snoj et al., 2004; Story &
Loroz, 2005; Petre et al., 2006). Perceived product quality, as a form of overall evaluation of a
product, is a relatively global value judgment (Sebastianel1i & Tamimi, 2002; Crosby &
Johnson, 2004; Story & Loroz, 2005). As the perception of value comes from a trade off
between a "give" component (perceived sacrifice) and a 'take" component (in the form of
products and services), a higher level of perceived product quality will lead to a higher level of
perceived value.
Service Quality
Service quality is crucial to the success of any service organization. Since customers participate
in delivery and consumption of services, they interact closely with various aspects of
organizations. This knowledge gives them the opportunity to assess critically the services
provided in organizations (Kandampully, 2000). Customers will assess service quality by
comparing services they received with their desired services. Hence, service quality plays a
critical role in adding value to the overall service experience (Lau, Akbar, & Fie, 2005).
Service quality can be defined as the conformance to customer requirements in the delivery
of a service (Chakrabarty, Whitten, & Green, 2007). Service quality is important to service
firms because it has been shown to increase profit levels, reduce costs, and increase market
shares (Anantharanthan Parasuraman, Zeithaml, & Berry, 1985). Moreover, service quality has
been shown to influence purchase intentions (Sullivan & Walstrom, 2001), and is used by some
firms to strategically position themselves in the marketplace (Brown & Swartz, 1989).
Therefore, service quality is a significant factor which influences purchase intention, market
share and profit level which are some of the ultimate goals of each company. Moreover, service
Rasoul Asgarpour, Abu Bakar A. Hamid & Zuraidah Binti Sulaiman
GJBSSR, Vol. 1 (2), January-March 2015: 632-640
quality is one of the key factors of customer loyalty which play a role as a value component in
order to gain customer loyalty and profitability.
Some researches have suggested that customers assess service quality by comparing what
they feel a seller should offer (i.e., their expectations) with the seller’s actual service
performance (Lehtinen and Lehtinen 1982; Lewis and Booms 1983). This description of service
quality found strong support in an extensive exploratory study (Anantharanthan Parasuraman,
et al., 1985), which also identified various specific attributes on which customers might assess
the expectations-performance gap.
In addition to the prior general definitions of service quality, some definitions are based
on online business point of views discussed as follows. Service quality is considered to be one
of the key determinants of online retailer success (Jarvenpaa & Todd, 1997). Zeithaml et al.
(2000) defined Web site service quality as the extent to which a Web site facilitates efficient
and effective shopping, purchase, and delivery of products and services.
Online shoppers perceive the benefits and convenience of obtaining information about
products directly from the Internet rather than through an off-line store (Zhang & Prybutok,
2005). The reduction in time needed to research product costs and product related information
has also been identified as a key benefit of online shopping (Ariely, 2000). Being able to search
quickly for information about a product or service increases customer satisfaction and improves
customer intentions to revisit and repurchase (Lynch Jr & Ariely, 2000). Customer perceptions
of convenience directly affect perceptions of service quality and satisfaction in online shopping
(Zhang & Prybutok, 2005). there is a consensus among researchers that favouring superior
customer service as having the greatest impact on customer satisfaction and loyalty (Grewal,
Iyer, & Levy, 2004).
In the services marketing literature, the service quality construct is a controversial topic
(Rust and Oliver, 1994; Zeithaml, 2000; Brady and Cronin, 2001; Zins, 2001). In the business-
to-consumer literature, researchers have adopted three road conceptualisations. The first,
proposed by Gro¨nroos (1982), defined the dimensions of service quality in global terms as
being functional and technical. The second, proposed by Parasuraman et al. (1988), identified
service-quality dimensions using terms that describe service-encounter characteristics
(reliability, responsiveness, empathy, assurances, and tangibles). The third, proposed by Rust
and Oliver (1994), considered overall perception of service quality to be based on the
customer’s evaluation of three dimensions of service encounters: the customer-employee
interaction, the service environment, and the service outcome.
In light of previous three conceptualizations for service quality dimensions, usually
Parasuraman et al. (1988) model has been adopted in researches. Moreover, Parasuraman et
al.’s (1988) research is one of the extensive exploratory studies which also identified various
specific attributes on which customers might assess the expectations-performance gap.
Parasuraman et al. (1988) model is clarified in details in following.
In theoretical models building by Parasuraman et al. (1988) and on the basis of findings
from empirical research in several sectors, Parasuraman et al. (1988) identified five generic
dimensions that customers use as criteria in judging service quality that is defined as following.
Reliability: ability to perform the promised service dependably and accurately;
Responsiveness: willingness to help customers and provide prompt service; Assurance:
knowledge and courtesy of employees and their ability to inspire trust and confidence;
Empathy: caring, individualized attention the firm provides its customers; Tangibles:
appearance of physical facilities, equipment, personnel, and communication materials.
Out the five service quality dimensions, reliability has generally surfaced as the most
critical dimension, based on both direct measures of relative importance (Valarie A Zeithaml,
Parasuraman, & Berry, 1990) and importance weights derived from regression analyses (A
Parasuraman, et al., 1988). Therefore, providing reliable service is the core element of service
However, case studies and anecdotal evidence strongly suggest that achieving sustainable
competitive advantage in the marketplace will be very difficult with just superior products and
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GJBSSR, Vol. 1 (2), January-March 2015: 632-640
reasonable prices; regardless of whether a company’s core offerings are products or services,
superior service quality is essential for excellent market performance on an enduring basis
(Berry, 1999). Therefore, service quality is much more difficult for competitors to copy
effectively than product quality and price (Parasuraman and Grewal, 2000; Parasuraman et al.,
2005). Moreover, the greater competitive leverage that service quality offers is also relevant in
the context of perceived value and customer loyalty since these are important determinants of
market performance (Ananthanarayanan Parasuraman & Grewal, 2000).
In conclusion, offering superior customer service has the greatest impact on customer
satisfaction and loyalty (Grewal, et al., 2004). Thus, the importance and effect of service quality
as one of the major value components is emphasized and confirmed as it is mentioned in above.
From the consumer's perspective, price is what is given up or sacrificed to obtain a product or
service. Defining price as a sacrifice is consistent with conceptualizations by other pricing
researchers (Monroe and Krishnan, 1985; Chapman, 1986). Price is described as “the amount
of money charged for a product or service; the sum of the values that customers exchange for
the benefits of having or using the product or service” by Kotler and Armstrong (2010). The
real price of a product or service makes sense after the subjective interpretation of the customer
(Oh, 2000).
Jacoby and Olson (1977) distinguished between objective price (the actual price of a
product) and perceived price (the price as encoded by the consumer). Objective monetary price
is frequently not the price encoded by consumers. Some consumers may notice that the exact
price but others may encode and remember the price only as "expensive" or "cheap." Still others
may not encode price at all. Studies reveal that consumers do not always know or remember
actual prices of products. Instead, they encode prices in ways that are meaningful to them
(Dickson & Sawyer, 1990).
For customers, the perceived price, which includes time: effort, and search costs, is more
meaningful than the actual monetary price of an item or service. The customer usually judges
price and service quality based on the concept of equity and generates his or her satisfaction or
dissatisfaction level based on that concept (Oliver, 1997). In other words, in an evaluation of
overall price fairness, the customer considers both the monetary and non-monetary costs of
acquiring the product or service (Cronin et al., 2000; Homburg et al., 2005).
Perceived sacrifice is defined as what is given up or sacrificed to acquire a service (Heskett,
1990). It is a multidimensional construct, which is measured by indicators representing visitors’
perceptions of the monetary and the nonmonetary dimensions of price associated with
acquisition and use of a service. Perceived monetary price is usually assessed by a direct
measure of price paid for the service, while non-monetary price can be assessed by measures
of time and effort associated with a service (Cronin, Brady, & Hult, 2000).
Price significantly influences visitors’ purchase behavior and consequently an
organization’s revenues (Han et al., 2001). For the service provider, price is an important
decision variable that influences the profitability of an organization. For visitors, price
represents part of the sacrifice they have to make to receive the service. Visitors are likely to
use various cues or types of information when evaluating alternate destinations. Among the
types of information cues visitors evaluate, the use of price to arrive at a perception of product
quality has been one of the most frequently examined (K. B. Monroe & Krishnan, 1985).
The price can be a clue regarding expectations related to the performance of the products
and services (Mattila & O'Neill, 2003). In other words, price can affect customers’ satisfaction
regarding a product or service (Bojanic, 1996), repurchasing, and WOM intentions (Han and
Ryu, 2009; Kozak, 2001), which has a psychological effect on their assessments (Kim & Jang,
2013). Price can also play a role as a moderate variable between satisfaction and behavioural
intention (Siu, Wan, & Dong, 2012). For instance, Siu et al. (2012) found that the satisfaction
level of customers having low-price perception is more determinant on their behavioural
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GJBSSR, Vol. 1 (2), January-March 2015: 632-640
In short, price is one of the components of customer value and key drivers of customer
loyalty. In addition, in light of prior theoretical and empirical statements, perceived price could
effect customer decision making, customer satisfaction and customer loyalty respectively.
3. Conclusion
Although various customer perceived value definitions mentioned by different authors,
the proposition of Gale (1994) and Rust et al. (2004) can be adopted to conclude that value is
the ratio between customer's perceived quality earned and price (monetary and non-monetary)
paid. To maximize customers' value ratio, a firm either to decrease customers' price paid or add
more value to them. As it was supported by Duchessi (2004), companies can increase value by
improving the product and/or service benefits and lowering prices simultaneously or one of
them individually. The technical, service, social (social approval), emotional (feeling),
economic factors drive customers' subjective assessment toward quality of goods or services
and sacrifice they made which is price. Thus, it can be concluded that companies can build
competitive advantage by delivering superior-desired value to customer. Moreover, customer
perceived quality and price are the main components of customer value which have significant
role in offering superior value to customers.
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... The present study used perceived value and brand image of the alternative product as the pull factors. Perceived value is defined as consumer's overall assessment of the product (Zeithaml, 1988;Asgarpour et al., 2014). It means good quality of the alternative product can help in building trust and commitment to switch and use the product (Kim and Jang, 2013;Moliner et al., 2007;Asgarpour et al., 2014). ...
... Perceived value is defined as consumer's overall assessment of the product (Zeithaml, 1988;Asgarpour et al., 2014). It means good quality of the alternative product can help in building trust and commitment to switch and use the product (Kim and Jang, 2013;Moliner et al., 2007;Asgarpour et al., 2014). The higher value (such as quality, benefits, utility, norms, standards and rules) of the alternative product, the more desire to switch to alternative products (Holbrook, 1994, 1999in S anchez-Fern andez and Iniesta-Bonillo, 2007. ...
Purpose The paper aims to investigate the push, pull and mooring effects towardswitching intention to halal cosmetic products. Design/methodology/approach The rapid growth of the halal industry in Muslim and non-Muslim countries opens a new market for cosmetic companies. For Muslims, using halal cosmetics is one of the religious orders, which their behavior relies on religious values. However, consuming nonhalal cosmetic products is still popular among Muslim consumers. The data are gathered through an online self-administered questionnaire. The total sample is 220 Indonesian females with an 88% response rate. Then, partial least squares structural equation modeling is used to analyze the data. Findings The result showed that regret, perceived value and religious beliefs influence the switching intention behavior to use halal cosmetics products. While dissatisfaction influences regret, and the brand also influences perceived value. Originality/value The paper provides several factors that are still rarely investigated previously in the context of halal cosmetics literature, such as perceived value and brand image (Handriana et al. , 2020). Hence, these factors contribute significantly to the intention of Muslim consumers to switch to halal cosmetics.
... The WPP indicates how much a customer is willing to spend over the market price for services or products [15,16] A perceived value (PV) is what the customer thinks a product or service is worth based on the benefits it provides compared to its cost [17]. It is determined by factors such as quality, brand, features, and customer service [18]. When customers recognize a greater value from a service or product, they are more inclined to purchase it and even pay an increased cost for it as well as interact in e-WoM activities, such as discussing their experiences with others on social media platforms [19][20][21]. ...
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The introduction of social media in the restaurant sector has changed the manner in which customers communicate with businesses. Social media marketing activities (SMMAs), such as customization, entertainment, trendiness, and interaction may have a substantial impact on followers’ perceived value and consumer behavioral intentions. Therefore, this research aims to investigate the impact of SMMAs on restaurant social media followers’ purchase intentions (PUR), willingness to pay a premium price (WPP), and e-WoM. Additionally, drawing on the Stimulus-Organism-Response (S-O-R) model, we seek to explore the mediation impact of perceived value (PV) in these relationships. To achieve this, an online questionnaire was developed for data collection from a convenience sample of casual-dining restaurant followers in Saudi Arabia. A sample of 433 social media followers was studied using PLS-SEM for testing the study hypotheses. The findings highlighted the significant positive impact of SMMAs on followers’ PV, PUR, e-WoM, and WPP. Further, PV partially significantly mediated the relationship between SMMAs and their consequences. Consequently, providing relevant, up-to-date, and entertaining content; responsiveness to customer needs and feedback; and positive brand engagement significantly contributed to enhancing restaurant followers’ perceived value, which sequentially improves their purchase intention, boosts positive e-WoM, and promotes the possibility of WPP for restaurant products and services. This research provides restaurant operators and marketers with valuable insights into how SMMAs influence followers’ behavioral intentions and enhances their understanding of how perceived value can be utilized to capitalize on the benefits of social media.
... Consumers assess the worth of a product based on an overall judgment of the product and compare its benefits and the cost incurred while buying the product (Asgarpour et al., 2014;Zeithaml, 1988). Marketers select influencers to communicate their brands to bring sufficient value to target audiences, leading audiences to search for and buy suggested brand items (Uzunoǧlu & Misci Kip, 2014). ...
... Furthermore, previous studies on customer-perceived value in relation to tourism websites mainly focus on the product's attributes, repercussions, and desired end states (core value, objectives, and goals) (Asgarpour et al., 2015). In addition, there is a lack of literature about the inclination to use sports events websites particularly in Malaysian context. ...
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Well managed marketing is essential in the development of a successful sport. Currently, the sports events marketing is tremendously competitive. As a result, customer-perceived value is becoming increasingly critical in the success of a business. Therefore, sports events organizers must be more innovative and creative in planning their marketing strategies. When building sports events tourism websites, the emphasis should be on the customer-perceived values rather than the interests of sports tourism organisations or service providers. This study seeks to ascertain the correlation between customer-perceived values of sports events tourism websites and sports tourists' inclination to use the websites. A quantitative method in the form of survey were used to collect data. The respondents in this study are 530 sports tourists who have attended three big sporting events in Malaysia. A linear correlation coefficient was used to determine the correlations between customer-perceived values and their inclination to use sports event tourism websites. Then, a multiple regression test was carried out to determine the influence of the components of customer-perceived value towards their inclination to use sports event tourism websites. The results indicated that there is a positive correlation between customer-perceived values and their inclination to use sports events tourism websites, albeit a moderate relationship. Moreover, the components of customer-perceived values, flexibility and reliability have been shown to be significant predictors towards their inclination to use sports events tourism websites.
... It is expected that certain variables, such as quality for durables and perceived purity of the consumables, will show significant power as the predictor of bias for a product. Perceived value is considered as the overall evaluation of the net advantage of a service or product by the consumer as per the consumer's appraisal (Asgarpour et al., 2015). Companies can improve the purchase intentions of consumers through product quality and value. ...
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This article reviewed influence of Country of Origin on Perceived quality. In this competitive world, it is important to know the factors consumer use while evaluating quality and making purchase decision. As shown in this study, one such factor that consumer considers while evaluating product quality is Country-of-Origin. It was found that consumers use Country-of-Origin as an external cue while they are evaluating quality of the product. There are other factors like Brand, Price which consumer consider while evaluating quality of the product.
... Customer perceived value (CPV) indicates the consumer's total evaluation of a product's utility based on perceptions of what is received and given (Zeithaml, 1988). It results from the consumers' perception before, during, and after the purchase experience (Asgarpour et al., 2015;Sweeney and Soutar, 2001). Literatures indicate that CPV has a significant effect on CS (Uzir et al., 2020(Uzir et al., , 2021Kusumawati and Rahayu, 2020) and leads to BI (Liu et al., 2021;Sánchez-Fernández and Iniesta-Bonillo, 2007;Eggert and Ulaga, 2002). ...
Sustainability and safety have become the two most important considerations of consumers of the current century. The limited movement of consumers and significant shift to online business as effects of the current health pandemic led to an increased demand for package delivery services worldwide. This study investigated the factors that influence the intention of consumers in the Philippines to choose a package delivery or carrying service during the COVID-19 pandemic using the integrated pro-environmental planned behavior (PEPB) theory and service quality (SERVQUAL). An online questionnaire was distributed as the instrument data collection, and 400 respondents who have utilized the package delivery service during the pandemic participated in the study. The theoretical model was examined using the partial least square structural equation modeling (PLS-SEM) with higher-order constructs. Testing the different parameters of structural model, measurement model, and the model fit presented values within the threshold. Moreover, the HTMT and Fornell & Larcker discriminant validity analysis was performed to determine the overall fit of the constructs of the model. These tests demonstrated the acceptability of the model. The findings revealed that perceived environmental concern, perceived authority support, subjective norm, attitude, service quality, customer perceived value, and customer satisfaction significantly influence the consumer's intention to choose a package delivery service during the pandemic. The consumers' perception of pro-environmental activities was also an essential contributor since perceived environmental concern and perceived authority support indirectly affect behavior intention. The findings contribute to developing and validating an integrated model on sustainability and service quality in package delivery services. The study also provides suggestions to service providers to ensure quality and safety on package delivery during the pandemic.
How does one convincingly demonstrate to policy makers and the public the value of museum experiences? I begin to answer this question by asserting that the primary value museum experiences deliver to the public is enhanced personal, intellectual, social and physical well-being. Findings from an initial pilot study conducted with different types of museums from three different countries, showed that individually and collectively all generated significant well-being-related value for the vast majority of their users - enhanced well-being lasting not hours but days and weeks. However, this approach, in and of itself, does not fully answer the initial question. To truly convince policy makers requires re-framing value results in monetary terms. Pilot data showed that the median value of a museum experience was $418, with each of pilot museum generating returns on investment in the range of $10 to $30 for every $1 spent. Discussed are the implications of this approach for creating value, including the relative pros and cons of increasing value by increasing the number of visitors versus increasing the quality of experiences. Also discussed is the potential for increasing value by changing who has access to museum experiences, including particularly individuals from minority and low-income communities.
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There are several factors that affect customer satisfaction. In the main, these factors include service quality and product differentiation. This study researches the relationship between customer satisfaction and organisational performance. It is based on the premise that customer satisfaction is formed and influenced by various factors, which in turn, affects company performance. The Balanced Scorecard (BSC), was used as a proxy measure for organisational performance. This research study followed a quantitative research approach. A survey and a questionnaire were used to collect data from respondents. Data was collected from one hundred and fifty (150) customers who have been in contact with the company. This was to ensure that the survey only considers those customers who have recently engaged with the company. This was obtained by employing a probabilistic sampling frame. A descriptive statistic was applied, whereby frequency distribution and percentages were computed to describe major variables. Thus, the final analysis of the study included one hundred and forty-eight (148) respondents. The weighted average age of all the respondents was 42, 6 years. The results of 𝑅2 across various service quality and organisational performance proxy measures such as the Balanced Scorecard (BSC) explained between sixty-five and seventy percent (65% and 70%) of the variance, thus illustrating that customer satisfaction measurements such as service quality measures impact on organisational performance. It is recommended that customer-targeted campaigns be employed to further understand customer needs, based on their demographic and socio-economic factors. Innovation prospects should also seek to offer value to members. This implies that cost factors and the quality of service should be at the core of innovation. It is recommended that management should seek to seize new business opportunities, and this should be in the interest of the customers, particularly unique nature services, and value adding for customers, improving customer service, and providing a high-quality service.
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This study aims to measure the direct and indirect impact of aesthetics on consumers' intention to buy smartphones through perceived value in the context of research in Vietnam. The research data conducted through three surveys: The first one is expert survey and group discussions to explore and adjust the scales. The second one is that the authors conducted a pilot study with 100 customers in Ho Chi Minh City to evaluate the reliability of scales, the last one is that the authors survey directly 200 customers and send 100 online surveys. And 275 valid observations with Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), Structural Equation Modeling (SEM) were conducted to find a direct and indirect impact on the intention to buy smartphones. The main results show that aesthetic has a direct and indirect impact on the intention to buy smartphones. The strongest influence is the indirect impact of aesthetics on the intention to purchase through social value; the second strong impact is the direct impact of aesthetics on the intention to buy, the two weakest indirect effects is through functional value and emotional value respectively. Based on the research results, the product developer can adjust the properties of aesthetics, and at the same time looking the ways to increase the perceived value of customers; thereby increasing revenue in selling smartphones.
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Evidence from past research and insights from an exploratory investigation are combined in a conceptual model that defines and relates price, perceived quality, and perceived value. Propositions about the concepts and their relationships are presented, then supported with evidence from the literature. Discussion centers on directions for research and implications for managing price, quality, and value.
The authors report a study of the effects of price, brand, and store information on buyers’ perceptions of product quality and value, as well as their willingness to buy. Hypotheses are derived from a conceptual model positing the effects of extrinsic cues (price, brand name, and store name) on buyers’ perceptions and purchase intentions. Moreover, the design of the experiment allows additional analyses on the relative differential effects of price, brand name, and store name on the three dependent variables. Results indicate that price had a positive effect on perceived quality, but a negative effect on perceived value and willingness to buy. Favorable brand and store information positively influenced perceptions of quality and value, and subjects’ willingness to buy. The major findings are discussed and directions for future research are suggested.
A model of grocery shopper response to price and other point-of-purchase information was developed and hypotheses were tested by using observations and interviews. The findings suggest that shoppers tended to spend only a short time making their selection and many did not check the price of the item they selected. Perhaps as a consequence, more than half could not correctly name the price of the item just placed in the shopping cart and more than half of the shoppers who purchased an item that was on special were unaware that the price was reduced. Other results on point-of-purchase information processing and behavior are discussed.
In this article, the authors examine the roles that price, performance, and expectations play in determining satisfaction in a discrete service exchange. The authors maintain that the price fluctuations common to the many service industries that implement demand-oriented pricing, combined with the inherent heterogeneity of service performance, likely result in price–performance combinations that vary widely. Furthermore, the authors propose that the level of price–performance consistency in a service exchange moderates the relationship between performance expectations and subsequent performance and satisfaction judgments. When price and performance are consistent, expectations have an assimilation effect on performance and satisfaction judgments; when price and performance are inconsistent, expectations have no effect on performance and satisfaction judgments. To examine these issues, the authors develop a contingency model that they estimate using data from a multimedia experimental design. The results generally support the contingency framework and provide empirical support for normative guidelines that call for creating realistic performance expectations and offering money-back service guarantees.
Providers of professional services recently have awakened to consumer challenges, competition, and the realities of marketing. With these changes, a related and equally important issue has emerged—service quality and evaluating the service encounter. Using medical services as the primary study setting, the authors explore the concept of professional services quality and its evaluation from both the provider and client perspectives. They use gap analysis as an appropriate approach for examining the evaluation of a professional service. The findings provide special empirical insights on the gaps that can arise from inconsistent perceptions of expectations and experiences between patients and physicians. Finally, both managerial and research implications are presented.
This new edition retains ints authoritative presentation of marketing theory while still maintaining an interesting and engaging writing style. Stewart Adam, Deakin University; Sara Denize, University of Western Sydney, Australia. <br /