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The Conceptualisation and Measurement of Consumer Value in Services
Abstract
Consumer value has been widely recognised as a key factor in organisational management, marketing strategy and consumer behaviour. However, because of the scattered and non-conclusive pattern of research on this concept, no single conceptualisation or measurement has won universal acceptance. The present paper develops an approach to understanding and measuring consumer value in a service context. The psychometric properties of the resulting indices support the multidimensional structure of the value concept. Hence, through both theoretical and managerial implications, this study suggests directions for further empirical research on this important topic.
... Customer willingness to pay is a measure of how attractive a product is in relation to its monetary value (Hanemann, 1991). A simplistic view of this concept is illustrated by the traditional supply and demand curve (Samuelson and Marks, 2015;Thweatt, 1983); see Figure 12. The relationship between these curves depends on the perceived value of the remanufactured product and is a parameter to consider when striving for profitable remanufacturing (Abbey et al., 2019b). ...
... Figure 12. Supply and demand curve (Samuelson and Marks, 2015;Thweatt, 1983). ...
... In practice, PaaS also introduces values beyond what one-off sales business models offer, including improved accessibility (Kjaer et al., 2019), hassle-free operation, improved cost predictions, asset-freeness in the financial bookkeeping, and ease of use (cf. Akbar and Hoffmann, 2020;Sánchez-Fernández et al., 2009;Zauner et al., 2015). These additional values also impact the users of the products and their willingness to pay (Rexfelt and Hiort af Ornäs, 2009). ...
Remanufacturing is an industrial process in which a core – a used, discarded, or broken product – is transformed into a product with a like-new specification and condition. However, to this date, remanufacturing activities on the market are few compared to manufacturing. There are several types of remanufacturers; the least common type is the original equipment remanufacturer, an original equipment manufacturer that not only manufactures new products but also remanufactures cores of its own products. Remanufacturing is potentially becoming a more widely used industrial process for original equipment manufacturers, and increased remanufacturing activities can positively contribute to the environment. The contribution comes from a reduction of raw material and energy consumption compared to manufacturing. Therefore, remanufacturing has the potential to decouple environmental impact from economic growth, thus contributing to more sustainable societies. However, assessing the benefits of remanufacturing does not directly correlate to growth within the remanufacturing industry. To encapsulate the environmental, social, and economic benefits of remanufacturing, manufacturers need to be aware of how remanufacturing can be initiated and implemented in practice. Therefore, the objective of this dissertation is to develop support measures for original equipment manufacturers to initiate profitable remanufacturing.
This research takes a stand in case study and transdisciplinary research where the initiation of profitable remanufacturing is studied at two original equipment manufacturers. The research study developed knowledge of how remanufacturing could be incorporated into existing operations at original equipment manufacturers. In parallel, financial assessments based on cost-benefit analysis were built to measure how well the case companies could perform remanufacturing. For the case study research, seven remanufacturing scenarios were developed, ranging from centralised remanufacturing performed by the original equipment manufacturer to decentralised performed at multiple locations using a retail network. Which scenario is preferable depends on, for example, risk-consciousness, cooperation between actors, and volume targets. However, given ideal circumstances, remanufacturing in-house in a centralised scenario was shown to be the most beneficial for the investigated original equipment manufacturer since the fewer middle hands and economies of scale also potentially enable lower costs.
For the transdisciplinary research, the remanufacturing initiation was business model-centric, meaning that the remanufacturing system was a consequence of a decision for a specific business model. Here, a scenario-based analysis was developed to understand under which circumstances the business model with remanufacturing was more lucrative for the provider – the original equipment manufacturer – and less costly for the users – the customers. For this, a systematic assessment approach was developed consisting of three steps: (1) provide a cost overview for each business model, (2) create scenarios by modifying the cost drivers, and (3) combine scenarios to reach synergetic effects.
Based on the case study, two sets of four prerequisites for initiating remanufacturing were derived. These are divided into essential and supporting prerequisites and illustrated through a framework called the Remanufacturing Rocket. The essential prerequisites highlight fundamental requirements to perform remanufacturing. Should one of these four factors be missing, remanufacturing cannot be successfully initiated. The supporting prerequisites are valuable to enhance the effectiveness and efficiency of the process, such as through streamlined operations, organisational change, or information exchange. Hence, to reach the fullest potential of remanufacturing, both the essential and the supporting prerequisites are needed.
Furthermore, the area of financial assessments was explored in a systematic literature review to identify insights for developing such assessments tailored for individual original equipment manufacturers in initiating remanufacturing. For this, six perspectives for framing financial assessments are proposed. These cover the system boundaries for the assessments as well as the individual needs and visions of original equipment manufacturers. Additionally, a framework was developed to select financial assessment models for remanufacturing initiations based on ease of use and capability to handle complex datasets.
Conclusively, it is proposed to apply the prerequisites for initiating remanufacturing together with a financial assessment in an iterative manner to investigate the profitability for original equipment manufacturers to initiate remanufacturing. The essential prerequisites influence the first iteration of the financial assessment, which then contributes to refinements of how the essential prerequisites should be aligned in an economically preferable way. Once satisfactory, another iterative process could be initiated between the supporting prerequisites and the financial assessment. By using the proposed approach, the prospects of profitable remanufacturing could be thoroughly investigated before attempting to initiate a process in practice, thus reducing the number of resources spent in vain. Additionally, the iterative process was integrated into a 5-step Approach For Initiating Remanufacturing (5AFIR) to guide original equipment manufacturers towards initiating profitable remanufacturing.
... The conceptualization of perceived value follows two approaches: onedimensional and multidimensional (Roy, 2013(Roy, , 2015Sánchez-Fernández et al., 2008). The one-dimensional conceptualization defines perceived value depending on two constituents, i.e., benefits and utility, which a customer gains (e.g., economic, social, and relationship) and sacrifices (e.g., price, time, effort, risk, and convenience) while purchasing or experiencing the good/ service. ...
... A key aspect of Holbrook's (1996) argument is that all eight types of perceived values tend to occur simultaneously in most consumption experiences. Sánchez-Fernández et al. (2008) investigated the dual nature of perceived value in the food service industry. They reported certain values loaded on similar factors; hence, their analysis was based on combining status and esteem into social value, and aesthetics and spirituality into altruistic value. ...
... They reported certain values loaded on similar factors; hence, their analysis was based on combining status and esteem into social value, and aesthetics and spirituality into altruistic value. Similar to Zeba et al. (2020) and Eren's (2021) work, Sánchez-Fernández et al. (2008) offered a new perspective to perceived value, suggesting it comprises both utilitarian (efficiency, service quality, social) and hedonic (play, aesthetics altruistic) dimensions. Boksberger and Melsen (2011) also agreed with these two categories. ...
This study examines perceived value as an alternative antecedent of customer delight in the fine-dining industry. Specifically, a conceptual model is developed by bifurcating the means-end loyalty chain that depicts the hedonic and utilitarian routes to loyalty. This model encompasses the differential effect of the hedonic and utilitarian dimensions of perceived value conceptualized by Holbrook relative to customer satisfaction and customer delight and ultimately influences customer loyalty dimensions. Regression analysis suggests perceived hedonic value dimensions are more significant determinants of customer delight than utilitarian value dimensions. The findings will serve as the basis for the restaurants to develop and implement successful consumer relationship marketing strategies.
... In practice, this assumption ignores additional benefits of PaaS, such as hassle-free operation (cf. Akbar and Hoffmann, 2020;Sánchez-Fernández et al., 2009;Zauner et al., 2015), the precise prediction of the cost, a lower amount of payment recurring over time, and asset-freeness in the financial bookkeeping, meaning that the benefits of PaaS will be underestimated. ...
... Thus, it is also important to consider the results in relation to the additional value PaaS typically provides such as ease of use, accessibility, or convenience (cf. Akbar and Hoffmann, 2020;Sánchez-Fernández et al., 2009;Zauner et al., 2015). In this paper, these additional benefits are likely to underestimate the value of PaaS relative to Sales. ...
With the much-needed transformation from linear to more circular resource flows, it is imperative for enterprises to understand their financial prospects. Transforming towards Product-as-a-Service (PaaS) with circular elements introduces new considerations that must be addressed to ensure profitability and sustainability. However, there is a lack of comprehensive financial assessments based on empirical cases to guide companies in assessing the lucrativeness of their transformations. This paper addresses this gap by proposing a simple-to-use and flexible financial assessment model for PaaS, helping practitioners identify the conditions necessary for financial viability from both provider and user perspectives. Grounded in transdisciplinary research, this study focuses on a construction machine manufacturer's transformation from a traditional one-off sales business model to PaaS. The transformation is analysed through the development of a life cycle costing financial assessment model that addresses relevant cost drivers. Using discounting methods, the model can help practitioners generate scenarios to identify feasible solutions for profitable PaaS setups. Additionally, the paper presents an analytical procedure to identify conditions for a financially viable PaaS. The procedure includes scenario-based analysis that accounts for systemic changes often necessary for successfully realising PaaS. By following the proposed procedure, along with the financial assessment model, manufacturers can streamline their financial assessments to identify necessary changes. For the analysed case company, the modelling results indicate that it must redesign its products for PaaS to outperform its previous business model.
... Over the past few decades, within the context of a complex and ever-changing business environment, an increasing number of consumers have placed a strong demand on creating customer value. Consumer value is widely recognized as a key factor in organizational management, marketing strategies, and consumer behavior [9]. However, several scholars have underscored that, compared to basic customer satisfaction, further refinement and development of consumer value research are necessary (e.g., [10]), emphasizing that value is a crucial determinant of buyer satisfaction and repurchase decisions. ...
... In recent years, various businesses have recognized the importance of enhancing consumer value, resulting in a surge in related research. However, in the service sector, research on consumer value remains somewhat fragmented [9]. Several marketing literatures discuss the concept of "value", with scholars frequently referring to consumer value as "customer value", "perceived value", or "shopping value". ...
As food safety awareness rises and living standards improve, consumers have increasingly higher expectations for the efficiency and quality of cold chain logistics services. For cold chain logistics service providers, accurately understanding consumer psychology and enhancing their willingness to continue using the service—while guiding them to actively participate in green cold chain logistics practices—are necessary means to maintain competitiveness. Therefore, based on stimulus-organism-response and cognitive-affective-conative theories, this study constructs a three-stage model to explore the factors influencing consumers’ continuous consumption of online retail cold chain delivery services. This study substantiates that consumers’ intention to continue consuming proceeds through the following three stages: cognitive, affective, and conative. Specifically, the results indicate that consumer- and environment-oriented services significantly enhance consumer value and psychological empowerment, which further promotes their intention to continue using the service and participate in green practices. Moreover, psychological empowerment and perceived value fully and partially mediate the relationship between the two types of services and consumer sustainable consumption, respectively. These findings expand the research on cold chain consumption and deepen our understanding of how various factors influence consumer behavior.
... To conceptualize hotel customer orientation, this study relies on the theoretical background of the "consumer value" 2 (Gallarza, Gil-Saura, & Holbrook, 2011;Holbrook, 1998;Sánchez-Fernández, Iniesta-Bonillo, & Holbrook, 2009). That concept allows the organization's desired positioning to be considered through its strategic orientation and, more particularly, customer orientation. ...
... in the consumer value literature (Gallarza et al., 2011;Holbrook, 1998;Sánchez-Fernández et al., 2009), characterizes the extent of customer orientation in our case sample for three kinds of hotel customer orientation (luxury, entertainment, and family). Second, the findings also highlight the importance of considering front-office staff "empowerment" and incentive-system design. ...
This paper investigates causal relationships between management control system (MCS) practices and performance in French Riviera hotels. The current literature presents mixed and contradictory findings regarding the relationships between delegation, performance measurements in incentive systems, and performance, both non-financial and financial. We argue that taking complexity into account when studying such relationships is hence of prime importance. In addition, our analytical method relies on the state of the art, relying on the tandem use of PLS-SEM and fsQCA. Moreover, to the best of our knowledge, it is one of the first to extend a prior PLS-SEM analysis by a partial least-squares prediction-oriented segmentation (POS). Our findings highlight some very different pathways to hotel financial performance and the influence of the hotel customer orientation in this context. Those findings contribute to the literature on performance and the hospitality industry and highlights managerial implications related to the design of effective MCS practices.
... When retailers possess an understanding of and effectively respond to the needs of their customers, it results in customer satisfaction. The study conducted by Sánchez-Fernández et al. (2009) examined the correlation between consumer satisfaction and economic value. The authors proposed the implementation of a practical instrument for assessing the economic worth of formulating and implementing effective strategies aimed at generating and delivering value to customers within the retail industry. ...
Background: This study shows how significantly the retail sector impacts customer satisfaction through service quality. Purpose: This study delves into the influential factors within the realm of service quality dimensions offered by electronic retail outlets and their consequential impact on customer satisfaction. Method: The research employs standardized regression weights to identify the critical service quality dimensions impacting customer satisfaction. Key dimensions include tangibility, responsiveness, reliability, and empathy, with reliability emerging as the most influential factor. Result: Findings underscore the significance of several service quality dimensions, including tangibility, responsiveness, reliability, and empathy, within the context of a retail outlet. Each of these dimensions plays a vital role in shaping the customer’s experience and satisfaction. Notably, reliability emerges as the linchpin, signifying that customers place a premium on the predictability and trustworthiness of services provided by electronic retail outlets. Conclusion: Retail businesses should prioritize enhancing tangibility, responsiveness, reliability, and empathy as part of their customer-centric strategies. These improvements have the potential to exert a substantial and positive influence on customer satisfaction. By acknowledging the pivotal role of these dimensions and incorporating them into their operations, retailers can design strategies that lead to heightened customer experiences and, ultimately, elevated levels of customer satisfaction.
... Perceived value, attitude, and usage intention Although studied for decades, perceived value lacks universal conceptualization and measurement, with two primary approaches coexisting (Sánchez-Fernández & Iniesta-Bonillo, 2007;Sánchez-Fernández et al., 2009;Zeithaml et al., 2020). In the unidimensional approach, perceived value is a general utilitarian concept based on cognitive, economic, and ethical foundations, focusing on the relationship between benefits and costs. ...
Objective: besides free access to online games that adopt the free-to-play business model, players may purchase items to customize the game’s appearance in a consumer-to-consumer (C2C) marketplace. However, the aesthetic value of the virtual items has yet to receive attention in the literature. For this type of game, this study examines a conceptual model of user participation in purchasing virtual goods, testing the relationships between perceived value dimensions (aesthetic, functional, and economic), continued usage intention, and word-of-mouth (WOM) recommendation, with attitude as a mediating factor.
Methods: a survey sample of 157 Brazilian users was analyzed with structural equation modeling.
Results: the three types of perceived value were supported as antecedents of attitude, which mediates the relationships between perceived value and the consequent intentions of reuse and WOM recommendation. The model’s overall fit index is 64.61%, and its explanatory power is 44% for continued use intention and 64% for WOM recommendation.
Conclusions: this study advances the understanding of the dynamics of C2C markets for virtual goods through an empirical analysis of the antecedents of loyalty, including the aesthetic dimension of perceived value. The findings indicate where the platforms can improve, for example, reinforcing the aesthetic value of virtual goods to promote connections with and among users, thus increasing continued use and WOM recommendation.
Keywords:
virtual goods; online games; Steam marketplace; aesthetic value
... Petrick [31] has identified value dimensions as emotional response, reputation, monetary price, and behavioral price. Meanwhile, the dimensions of efficiency, quality, social value, aesthetic value, and altruistic value were described by Sánchez-Fernández, et al. [32]. ...
Creating an immersive virtual environment in open distance learning is essential to enhance student engagement. Therefore, this study aims to predict the factors that drive student engagement in universities that run open distance learning: ease of use of learning management system (LMS), experience quality, service value, and relevant information. This research uses quantitative techniques with primary data sources from students’ responses in five study programs at BINUS Online. Of the 336 students, they responded to the questionnaire distributed via email with a simple random sampling technique. PLS-SEM was used to answer the research hypothesis. The findings of this study revealed that ease of use of the LMS and relevant information positively and significantly influenced the quality of experience and perceived service value. In addition, it was also found that the four endogenous variables had a positive and significant effect on student engagement behavior. Furthermore, this study contributes to universities that run open distance learning to encourage and enhance student engagement to achieve sustainability and recognition of the open distance learning market
... Sweeney and Soutar [21] further proposed a four-dimensional customer value model from a consumer perspective, including emotional, social, performance, and value for money. Later, more scholars contributed to expanding the understanding of customer value via the aspects of diversity, hierarchy, and complexity [22,23]. Khalifa [15] classified customer value frameworks and models into value components, benefits/costs ratio models, and means-ends models. ...
Consumer experiences with cultural fashion for special events often involve heightened expectations, with satisfied customers typically demonstrating increased brand engagement and loyalty. Traditional cultural attire, such as the Chinese Qipao, is widely recognized as quintessential for expressing cultural identity and fashion sensibility, particularly for weddings and other significant life events. Understanding these consumer experiences is crucial for cultural fashion brands seeking to expand their customer base by strategically enhancing consumer satisfaction through providing innovative features. This study, which examines customer experiences with hybrid customized high-end Qipaos for weddings using the integrated customer value framework, seeks to identify value dimensions that lead to satisfied customers. LDA and thematic analyses reveal three predominant themes. Specifically, the theme of “style”, reflecting esthetic values, emerged as the most influential factor and drives customer satisfaction, favorable word of mouth, and referrals. The theme of “fit”, representing performance values, was identified as a basic product feature and functions as a dissatisfier that customers take for granted when customizing high-end traditional cultural attire. This study used a dictionary-based analysis to examine consumers’ price, service, and traditional element preferences. This study proposes a five-dimensional value framework for assessing the high-end expressive fashion customization processes and experiences from a customer value perspective. The findings theoretically expand consumer value theory within customized consumption and offer practical recommendations for e-commerce brands and customization enterprises, aiming to enhance customer satisfaction.
... Based on the observations, it was possible to notice the overlapping of value perceptions between the actors (Grönroos & Voima, 2013;Holt, 1995;Sánchez-Fernández et al., 2009). Therefore, it is possible to confirm Proposition 3: co-creation is related to the multiplicity of value perceptions, which assumes a unique and multidimensional character for each actor, generating relevance for their actions and fostering social innovation. ...
The study of Social Innovation Ecosystems (SIE) has been gaining importance in several areas of knowledge, given their effects in combating social, environmental and economic problems. In view of this, the importance of the interaction of the different actors that compose it becomes the central theme of this study, from a perspective of co-creation of value. Therefore, this research, through a case study, aimed to present propositions that point out the predisposition of an SIE to the value of co-creation. In this way, the study aims to contribute theoretically to the study area and provide elements that contribute to the analysis of SIE.
... It is argued that the conceptualisation in Tse et al. (1988) is narrowly focused mainly on the functional aspect of the consumption process. Scholars contend that value should not be confirmed to a single dimensional since it consists of multiple interrelated attributes, dimensions, and categories (Holbrook, 1999, S anchez-Fern andez et al., 2009, Sweeney and Soutar, 2001. The TCV in Sheth et al. (1991) offers a multiple attributes model explaining "why consumers choose to buy or not to buy (or use or not use)". ...
Purpose
This paper aims to understand consumption values buying from informal retail markets (i.e., street vendor retailing). It also explores why consumers prefer daily necessary goods from the informal compared to the formal retail market (such as supermarkets, retail chain outlets and e-commerce).
Design/methodology/approach
Employing the qualitative research approach, this study collected data from nine respondents in two areas in Malaysia. Data were collected using semi-structured interviews and analysed using the thematic analysis technique. Only representative verbatim codes were presented under five themes of consumption value theory.
Findings
Consumers are triggered by the convenience, ease, and exclusive products (conditional value), friendly and known relationship with informal sellers, as well as the availability of some particular food items (emotional value) and lower price and freshness of groceries (functional value) while buying from informal compared to formal retail vendor.
Research limitations/implications
This study provides knowledge implications to the consumption value theory. Functional, emotional, and conditional values are the dominant components of purchase behaviour in informal compared to formal retail channels. Social values are common, whereas epistemic value is more substantial in formal retailing.
Practical implications
Findings are helpful for informal retail businesses to understand consumers' buying behaviour. Informal retail owners should ensure that commodities are fresh, highly affordable and available in the local communities. Building a friendly relationship with consumers would be a key to the success of this retail sector.
Social implications
Authorities should support informal sellers to set up mobile retail stores in residential areas. This effort would offer greater convenience to both parties in informal businesses and ensure informal sellers' financial and social well-being.
Originality/value
Despite the widespread acceptance of buying goods from informal retail vendors, research on consumption value in informal retailing is largely overlooked. Previous research primarily deals with formal market phenomena due to their size and economic contribution. Consequently, current literature lacks an understanding of why consumers prefer to buy from informal retail vendors for their daily groceries when the formal retail channel could fulfil similar needs. Using a qualitative research design, this research uncovers consumers' buying motives from informal compared to formal vendors.
... This choice is further motivated by three reasons. First, in Holbrook's (1999) approach, on which we based our conceptualization of value-in-use, value is generally viewed and modeled in the literature as a higherorder construct consisting of multiple components or dimensions (Gallarza & Gil-Saura, 2006;Leroi-Werelds et al., 2014;Sánchez-Fernández et al., 2009). More specifically, each of Holbrook's (1999) value types can be considered a first-order construct which contributes to the formation of the overall customer value construct. ...
For Gen Z, mobile apps largely equal 'self-service'. App vendors must understand key determinants of these users' value-in-use experience and customer engagement. Recent research highlights how usage context co-determines value-in-use experience. In this article, how the personal usage context affects app evaluation is theorized and empirically investigated. Hypotheses about effects of three relevant service intensifiers, i.e., perceived task complexity, uncertainty, and time pressure on value-in-use and customer engagement are experimentally investigated. Conditional value is proposed as a mediator. Results show that value-in-use experience , and ensuing engagement with a service are contingent on conditional value, which is informed by two of the investigated context elements and their interaction effect. The theoretical implications of how usage context impacts value-in-use and engagement are provided. Findings allow service vendors to improve their services by considering the personal usage context of Gen Z. Limitations of the study are discussed and an agenda for further research is provided.
... Altruism in the context of sustainability has been examined in a number of research studies. It has been shown that those motivated by a strong feeling of dedication and generosity are more likely to utilize environmentally friendly goods and services than those who do not feel the same way (Sánchez-Fernández et al., 2009). Research has revealed that consumers' willingness to pay a higher price for green energy is influenced much more by the expectation of warm-glow advantages than by the perceived decrease in environmental impact (Wüstenhagen and Bilharz, 2006). ...
With growing urbanization and increasing world population, energy demand also increases. A significant portion of the world's energy comes from fossil fuels, and these sources of energy are declining rapidly at the current consumption rate. There are also growing environmental concerns on the use of fossil fuels increasing greenhouse gas emissions. In this regard, renewable energy (RE) shows promising solutions which are both sustainable and environmentally friendly. Developed countries and leading organizations are investing heavily in the RE sector. However, the developing world has anxieties over social acceptability and people's willingness to pay for renewable energy. This study is conducted in Pakistan to understand the public perception and willingness to pay. The Theory of Planned Behavior (TPB) was utilized with background factors such as awareness, perceived advantages, perceived challenges, and moral obligations to examine its influence on people's willingness to pay. In addition to this, the study also assessed the indirect effects of background factors (awareness, perceived advantages, and perceived challenges) on willingness to pay through public attitude. Furthermore, the indirect relationship between background factors (awareness and moral obligation) and willingness to pay through subjective norms was also examined. A total of 512 samples were gathered from participants and were analyzed through partial least square-structural equation modeling (PLS-SEM) and SPSS. The study findings are very interesting and back up our hypotheses that the background factors (awareness, perceived advantages, and perceived challenges) are positively associated with public attitude and have an indirect effect on willingness to pay through public attitude. Similarly, variables such as awareness and moral obligation are negatively and positively associated with subjective norms, respectively. However, the variables, awareness and moral obligation, have no indirect relationship with willingness to pay through subjective norms. Additionally, the study reveals that the components (attitude and perceived behavior control) of TPB have a significantly positive effect on willingness to Z, Abu-Alam T and Abioui M (2023), Assessing public perception and willingness to pay for renewable energy in Pakistan through the theory of planned behavior. pay. The study also concludes that the participants having formal education and knowledge about climate change and renewable energy are inclined toward green energy and are willing to pay, and they are hardly influenced by others' opinions. Furthermore, the study also provides insights for policymakers, suggestions, and recommendations for the future. KEYWORDS renewable energy, public perception, willingness to pay, theory of planned behavior, PLS-SEM
... Social Media was measured using items adopted from [105] and [106]. Altruistic Motivation was measured utilizing items taken from [107][108][109]. Egoistic Motivation measured utilizing items taken from [110,111]. ...
Nowadays, green consumerism is a global trend in the era of the 21st century, prompting businesses to become more environmentally conscious and to build a robust green product range to meet the demands of new customers. This tendency has been aided by social media, which has influenced customers’ buying intentions to be more ecologically responsible. The current study investigates the effects of web-based media on motivation, i.e., egotism and altruism and, subsequently, its effect on the intention of green buying. This paper also attempts to assess the impact of subjective norms on the intention of green buying and, subsequently, its effect on green purchase behavior by incorporating the construct EWOM. Administering the structured questionnaire, 362 young Indian customers’ responses were collected. The Structural Equation Modeling (SEM) approach was applied to test the suggested conceptual model based on empirical research. The findings point to the significance of social media in terms of altruistic motivation, egoistic motivation, and subjective norms, s well as the job of these components as predecessors of green purchasing intention and, subsequently, purchase behavior. The findings also demonstrate the impact of EWOM in influencing buying decisions. The findings of this paper demonstrates that social media, as a well spring of information, contribute pivotal ingredients in the establishment of consumer motivation. These consumer motivations with subjective norms play an essential role in positive green purchase intention. Green buying intention and EWOM had a favorable influence on buying behavior, according to the findings. The findings are important for marketers who would like to improve their social media communication tactics in order to raise customer motivation and buying intention, as well as buying behavior, for green products.
... In analogy to other areas such as marketing or finance, we distinguish between value and price. While no single measure of value has gained universal acceptance [42], finance scholars consider valuation as an assessment of assets based on their intrinsic characteristics, while pricing manifests itself in the form of comparisons across transactions [43]. In contrast to value, the price of an asset is determined in large part by mood and momentum, liquidity, incremental information as well as groupthink [44]. ...
The COVID-19 pandemic has caused significant disruption in the sports industry and has raised the question of whether the football industry is based on a sustainable business model. Using data from the English Premier League (EPL), we develop a regression model to achieve two objectives. First, we examine the relationship between the different revenue sources (TV revenues, match revenues, and commercial revenues) and the main cost drivers of professional football clubs (player salaries and transfer expenses). Second, we seek to predict the likely impact of a major market downturn such as the COVID-19 pandemic in the EPL. Our results suggest that TV revenues are by far the most important source of income for player salaries and market values, followed by match revenues and commercial revenues. We predict that player salaries, market values, and transfer expenses will all decrease in the forthcoming EPL season, 2020/2021. The magnitude of the reduction depends on the coronavirus scenario and ranges from −20.4% to −9.5% for player salaries and −26.7% to −12.4% for player market values. Our study seeks to explore the relative impact of the three main revenue sources in the EPL on the unprecedented growth of player salaries, market values, and net transfer expenses in the last three decades. In addition, our study adds to the understanding of the pandemic’s expected impact on the EPL.
... The single-dimensional approach describes customer value as the customer's general evaluation of a product or service (Yi et al., 2014), while the multidimensional approach explains customer value as the customer's evaluation of a product or service based on selected dimensions (Shen, 2016). A considerable number of studies have criticized the single-dimensional approach of describing customer value for being too simplistic or narrow (Sánchez-Fernández et al., 2009;Zauner et al., 2015) and not sufficient to gain competitive advantage (Lien et al., 2018). Based on the aforementioned critics, numerous researchers have proposed a multidimensional approach to examine customer value (P.-T. ...
The potential economic contributions of the LGBT tourism market have received the attention of scholars, destination marketing practitioners and tourism businesses, highlighting the LGBT society as a lucrative market, while also signifying the distinctive needs of the LGBT community. This study investigates the impact of customer value on behavioural intentions in the LGBT tourism sector. Data was collected from 406 LGBT tourists using a self-administered electronic questionnaire. Data analysis was performed using the partial least squares structural equation modelling (PLS-SEM) technique. Results indicate that two out of five identified dimensions of customer value (functional value and emotional value) significantly impact customer value. Furthermore, customer value has a positive and significant impact on word of mouth. The results provide an understanding of important dimensions of creating customer value for LGBT tourism destinations. Managerial implications for LGBT tourism destinations are drawn from the research findings, and suggestions for future research are presented.
... Altruistic benefits refer to the intrinsic moral satisfaction that consumers derive from contributing to the common good; they are motivated by a genuine concern for others (Bock et al., 2018;Lavertu et al., 2020). One can, therefore, describe the otheroriented benefits of wearing face masks (i.e. to protect others from infection) as altruistic benefits (Papista & Dimitriadis, 2019;Sánchez-Fernández et al., 2009;Silchenko & Visconti, 2021). ...
This study adopts a theory of reasoned action approach to understand consumers’ mask wearing when shopping in the context of the COVID-19 pandemic. We investigated mask wearing while shopping as a prosocial consumption behaviour whereby self-oriented benefits and others-oriented benefits are added as proposed drivers of attitudes and perceived social norms. Empirical evidence from a survey in France and Germany confirms a strong effect of social norms on mask-wearing intentions. Moreover, altruistic benefits predict mask-wearing intentions, with attitude and subjective norms as mediators. In contrast, self-expression benefits of mask wearing only influence perceived social norms and not attitudes; this effect differs between the countries. Our findings guide scholars, policy makers and practitioners to steer consumers’ mask wearing as a prosocial behaviour.
Background
To successfully design, develop, implement, and deliver digital health services that provide value, they should be cocreated with patients. However, occasionally, the value may also be codestructed. In the field of health care, the concepts of value cocreation and codestruction still need to be better established within emerging digital health services. Studying these concepts is essential for developing effective and sustainable patient-centered care.
Objective
The aim of the study is (1) to understand the antecedents, decisions, and outcomes of value cocreation and codestruction in digital health services, (2) to define the dynamics between value cocreation and codestruction, and (3) to map future research areas of value cocreation and codestruction within digital health services.
Methods
The systematic review will be conducted in accordance with the Joanna Briggs Institute methodology for mixed method systematic reviews and the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) statement. The review considers scientific qualitative, quantitative, or mixed method studies published in English, Finnish, or Swedish that concern either value cocreation or codestruction in digital health services. Studies focusing on physical robotics and online health communities, as well as non–peer-reviewed and nonscientific papers, will be excluded. The searches were conducted using Scopus and MEDLINE during this protocol creation. Critical appraisal will be done using suitable checklists for qualitative, quantitative, and mixed method studies. The review will adhere to a convergent integrated approach as outlined in the Joanna Briggs Institute methodology for mixed methods systematic reviews.
Results
The searches resulted in a total of 837 records. The antecedents, decisions, and outcomes of value cocreation and codestruction in the context of digital health services will be described in a finalized systematic review. In the outcomes, our main interest is the effect on patient outcomes and experiences and professional experiences.
Conclusions
Since our study involves diverse scientific fields, there is a risk that our search does not capture all relevant papers. To mitigate this risk, we used 2 large databases for the searches. In addition, the value cocreation or codestruction terms may not have been used in all studies focusing on the collaborative roles of patients and providers, especially in the medical field, and that may be difficult to capture. The review reveals the current understanding of value cocreation and codestruction in digital health services and shapes the research agenda for these phenomena. Value cocreation can be used to both design and efficiently use digital health services trying to maximize the value for patients.
International Registered Report Identifier (IRRID)
DERR1-10.2196/63015
This study focuses on exploring the ethical and emotional dimensions of customer perceived value (CPV) in financial services. This area is crucial to understanding customer dynamics within the finances sector, yet it remains underexplored in existing literature. Utilizing a quantitative analysis of 652 customer surveys from Canadian financial institutions, this research employs SmartPLS3 for structural equation modeling to ascertain the impacts of frontline employee job satisfaction on customer's ethical and emotional perceptions as well as their overall CPV. The data analysis reveals that customer-perceived employee job satisfaction positively affects CPV by significantly influencing ethical and emotional benefits. Although ethical benefits alone do not directly impact loyalty or word-of-mouth (WOM) recommendations, their influence is significant when mediated through CPV, with emotional benefits directly amplifying WOM and indirectly boosting loyalty. Correspondingly, the results highlight the importance of employee-centric policies and their direct correlation to customer loyalty and satisfaction. As such, this study contributes to the body of knowledge by linking employee satisfaction with ethical and emotional customer benefits, suggesting a reevaluation of business practices to integrate these dimensions for enhanced customer value creation. Future research is encouraged to explore these dynamics across varied contexts to expound upon these relationships' applicability and robustness. Our inquiry into the subject concludes by highlighting the strategic importance of fostering employee satisfaction when seeking to elevate CPV and achieve enduring customer loyalty. Keywords: Customer Perceived Value, Customer Loyalty, Employee-Customer Interactions, Employee Satisfaction, Financial Services
In-store smart technology is rapidly transforming service delivery and value creation in the retail sector. However, despite these advances, academic acumen of customers’ perceived value of their smart service interactions remains tenuous, exposing an important omission in extant literature. Addressing this gap, we conceptualize, operationalize, and validate smart service value (SSV) in the retailing context. We first define SSV as the costs and benefits as perceived by customers of using in-store smart service applications. We then operationalize SSV and validate a third-order, reflective-formative construct by means of a scale development survey through Amazon MTurk (study 1; n=326). To further validate the proposed SSV scale, we subsequently tested our conceptual model using a survey querying a hypothetical retail setting through an Australian panel provider (study 2; n=298), which was analyzed by using PLS path modeling. Specifically, we explore SSV’s effect on customer engagement and trust, which are in turn envisaged to impact customers’ quality of life. The results reveal a significant mediating effect of affective customer engagement/trust in the association of SSV and customer-perceived quality of life, highlighting the pertinence of customers’ emotional (vs. cognitive) SSV assessments. Our findings are aimed at helping retailers to strategically position smart service technologies in their stores based on customer-perceived SSV.
Research background: Anti-consumption practices, in particular consumers’ reluctance to buy (RTB) foreign products, are increasingly common in today’s globalised and interconnected markets. This phenomenon is accentuated by the impact of negative consumer dispositions (e.g., animosity or ethnocentrism), which contribute to an unfavourable perception of foreign products and, consequently, increase RTB. However, knowledge about possible factors that may mitigate this RTB foreign products is limited, and even less is known about the influence that positive dispositions (e.g., affinity) may have on consumer perceptions and consumption/non-consumption decisions. Moreover, consumers are inundated with information from various sources, which can significantly influence their perceptions and image of a product-country, especially in a context associated with negative communication campaigns and image crises.
Purpose of the article: This research delves into the study of consumer affinity towards a foreign country, understood as an emotional feeling or positive disposition of a consumer that may mitigate their RTB foreign products, which often results from negative communication campaigns and a country-product image crisis. In addition, its influence on perceived risk and value, and the impact of these on RTB, is investigated. The moderating effect of the organic and induced image formed by the consumer on the risk-value relationship is also analysed, determining whether the induced image undermines this relationship.
Methods: The empirical study focuses on the Spanish agri-food sector, which has been the subject of negative communication campaigns and image crises in foreign markets. The conceptual model was tested in a sample of German consumers, as Germany is the primary destination country for these products and has also been the origin of several image crises in this sector. PLS-SEM was used to validate the proposed hypotheses.
Findings & value added: This research underlines the importance of fostering feelings of affinity towards a country and its products as a means to counteract negative campaigns, increase perceived value and mitigate RTB in foreign destination markets. Companies and public institutions, which influence the formation of the induced image in consumers, can contribute to improving consumers’ perception of a product-country. By shedding light on these dynamics, this study offers valuable insights for companies trying to cope with image crises fuelled by negative communication campaigns, which are increasingly prevalent in the competitive international landscape.
Objectives
The purposes of this study were to recognize correlates with the inclination of Gen Z customers to build brand relationship in Metaverse, as well as to recognize and categorise factors influencing Gen Z’s inclination to build and maintain brand relationships.
Material and methods
The empirical part was based on quantitative research in a form of a survey in 2023. The assumption of the sample selection was to find Gen Z respondents who had conducted any activity in Metaverse. Quota sampling was employed. In total, 97 valid questionnaires were used in the analysis. The gathered data were subject to content analysis, descriptive statistics analysis, and exploratory factor analysis (EFA).
Results
All the study participants declared leading an activity in Metaverse, mainly as gaming, education, or customer experience. Gen Zers are willing to engage in relationships with brands in a form of value co-creation, providing feedback, recommendation and brand advocacy or brand loyalty. EFA analysis allowed to identify 16 items combined in 5 categories: Inclination, Openness, Relatedness, Esteem, and Growth. Convergent validity for 5-item construct was tested and met required criteria.
Conclusions
This paper enhances our understanding of Gen Z consumers' inclination to build brand relationships in the Metaverse on both theoretical and empirical level. It responds to the need for further research in this emerging field, exploring less recognised factors and emphasizing the crucial role of the Metaverse in shaping consumer behaviour within virtual worlds. The study underscores the importance of utilizing the Metaverse for engaging customers and fostering stronger brand relationships, providing managerial insights to enhance customer experiences in virtual environments. Several limitations were addressed
While there is a fair amount of research on consumer disposal, there is scant research on value in disposition and a need for more research on the role of social media in the consumer disposal decision-making process. This research provides insights into how consumers create value-in disposal through social media ‘closet cleanout’ pages on Instagram. Through a grounded theory approach, interviews with Instagram closet cleaners reveal how value-in disposition is enacted using Holbrook’s (1998) classification of value. The findings show the multidimensional nature of value in digital disposal and empirically substantiate the enduring nature of Holbrook’s (1998) value conceptualization.
Cette recherche se propose d’étudier l’effet du message RSE sur trois dimensions de la valeur perçue de la marque (valeur sociale perçue, valeur éthique perçue et valeur utilitaire perçue) par les consommateurs jeunes Béninois et de mettre en évidence le rôle modérateur de la congruence de soi avec la marque entreprise. Pour ce faire 610 d’étudiants ont été exposés à une affiche publicitaire portant un message RSE basé sur les réalisations d’une marque locale et un questionnaire leur a été administré. Les résultats ont mis en évidence un effet positif et significatif du message RSE sur les trois dimensions de la valeur perçue de la marque. Enfin, ils montrent que la congruence de soi avec la marque ne modère positivement et significativement que l’effet du message RSE sur la valeur sociale perçue. L’effet modérateur n’est pas significatif pour les autres relations. Ces résultats fournissent aux praticiens, des éléments importants d’affinement du discours publicitaire pour mieux communiquer leur engagement responsable aux consommateurs et aux autres parties prenantes.
The COVID-19 pandemic threatened people’s lives and livelihoods, which induced an existential hapax, changing their consumption choices. The unexpected disruption in physical retail due to the measures to control the pandemic, and changes in consumer preferences have forced organized retailers to leverage technology and adopt omnichannel strategies. However, small, unorganized retailers, popular in emerging markets like India, do not have state-of-the- art digital technologies to compete with online and organized retail. Thus, they need consumer insights to devise effective marketing strategies for sustaining. This research uncovers post-pandemic consumer values that drive preference for fragmented unorganized retailers, based on qualitative data collected from 32 respondents using in-depth interviews. The findings highlight that the altered consumer values of spiritualism, minimalism, self-transcendence, altruism, reciprocity, and hedonic shopping orientation guide preference for unorganized retailers. Small retailers’ can leverage these consumer values by providing personalized products and services, communicating relevant store values, and adapting their operations to harness the opportunities in the new normal to revive and grow their businesses.
Non-Fungible Tokens (NFTs) are digital certificates of ownership that can be attached to virtual or physical assets. Recently, they have become increasingly popular, especially with the advent of metaverse, virtual spaces shared and accessible online. Many brands are launching NFT initiatives for various reasons including retaining customers, developing new revenue streams, or demonstrating that they are keeping up with the latest technological
advances. As for any product or service, to increase the likelihood of success of NFT initiatives, it is key to design them so as to provide value to the targeted audience. In previous research, the notion of “value” of NFTs has been essentially seen through the lenses of
financial return. However, NFT initiatives can provide other types of values to the targeted audience. This paper presents the NFTByBrands framework that can be used to identify the
potential types of values that can be delivered by brands through NFT initiatives, and can help guide brands in this endeavor. It is built upon customer perceived value theory, and an analysis of 50 NFT initiatives launched by 42 brands. The framework can also be used as a basis for further research on the value of NFTs, and a research agenda is proposed in the paper.
The present study has investigated the effect of trust and value dimensions on
the loyalty of public and private insurance customers. SPSS and LISREL soft
wares were used to analyze the data. For data collection, a questionnaire was
used and its validity and reliability was confirmed by Cronbach's content
validity and alpha test. The statistical population in this study was the
customers of public and private insurance companies in Kurdistan province
and the sampling method was randomly classified method based on market
share. According to the findings, in the cognitive path of the model, the effect
of cognitive trust (through utility value) on repurchase intention was observed
for the public insurance sector with a greater impact in comparison with the
private sector. However, in the emotional path of the model, the relationship
between emotional trust and hedonistic value for the public sector and the
effect of the hedonistic value on the willingness to advocate was not observed
for the private sector. The intensity of the value dimension in the public sector
and the dimension of loyalty in the private sector were higher than the other
sector. In general, the effect of trust and value on loyalty in the public sector
was greater than the private sector.
Purpose
Scholars have affirmed that a conceptualization of value co-creation in business relationships should reflect the nature and characteristics of interactional processes that occur in use. The advent of sales and marketing technologies, however, is changing the nature and dynamics of interactions. New trends in digitalization have played a significant role in emphasizing and facilitating the occurrence of business-to- business (B2B) collaborative or sharing economy. The B2B sharing economy and value co-creation are closely intertwined, as businesses harness the power of shared resources and collaboration to generate value in diverse ways. This study highlights the importance of going beyond value co-creation in studying B2B collaborative economy, unpacking the interconnected value processes that influence value co-creation. It also aims at showing the activities that characterize multiple joint value spheres among actors.
Design/methodology/approach
The study consists of 49 qualitative interviews with managers operating in different industries.
Findings
The paper shows that when considering digital B2B contexts, five joint value spheres in business relationships should be considered: a value co-creation, a value appropriation, a value communication, a value measurement and a value representation sphere. Each one is characterized by specific activities that are relevant from a managerial point of view.
Originality/value
This study highlights that value co-creation has often been over stressed when discussing business interactions, also with the advent of new technologies. Rather, this study offers a more comprehensive view of value co-creation that includes different value processes occurring in joint value spheres. These further processes are relevant because failure and success in business relationships within the B2B sharing economy are often dependent from activities outside the value co-creation process, which strongly affect it. Such knowledge will also open up new research venues and opportunities to better contribute to the practice of value management in business relationships.
Customer perceived value (CPV) is a cornerstone of marketing literature. However, myriad studies have generated contradictory empirical findings. In addition, though some existing literature reviews help clarify the conceptual foundations of CPV, the literature lacks a meta-analysis of empirical evidence about the CPV model and its effects. To consolidate existing research, the current meta-analysis assesses the findings of 687 articles, involving 780 independent samples and 357,247 customers. The most integrative CPV model, which includes benefits, sacrifices, and overall value, performs best. Empirical generalizations also reveal the relative weights of various benefits and sacrifices integrated into this CPV model and causal chains between CPV and different outcomes (satisfaction, word-of-mouth, and repurchase intentions). Finally, this analysis uncovers moderating effects of multiple relational contexts: nonprofit/for-profit, public/private, contractual/non-contractual, online/offline, business-to-business/business-to-consumer, and goods/services. For scholars, this article synthesizes existing findings on CPV; for managers, the results provide suggestions for ways to increase CPV.
The goal of this study is to investigate the role that customer satisfaction plays as a mediating factor in the link between multidimensional perceived value (i.e., functional value, emotional value, and social value) and customer loyalty of private commercial bank customers in Bangladesh. This study employed a quantitative research approach and convenient sampling technique to collect the data, where 367 replies out of 400 samples were valid for final analysis. The data set was tested by utilizing the statistical software packages SPSS and AMOS. The findings demonstrated that perceived value has a considerable positive impact on consumer satisfaction and loyalty. In addition, customer satisfaction not only has a positive impact on customer loyalty, but it also helps explain how mediated partially within perceived value and customer loyalty. The findings of the research will be of great assistance to bank management in developing a long-term sustaining customer-centric marketing strategy. Likewise, it would be a crucial contribution to the literature and would assist academics in carrying out their future research endeavors.
This article offers a personal perspective on the study of value. Based on a review of the academic contributions of the last 40 years, we aim to highlight the relevance of a concept that has been considered embryonic and crucial in marketing and business management. For this purpose, two main facets will be analyzed: the determining role of value creation in business activity and, at the same time, the complexity of its study, which requires continuous conceptual refinement and further development in assessment tools. Signs of progress (in the theory building) have been made, but some (measurement) challenges remain, while new encouraging avenues emerge, both for scholars and practitioners.
Sustainable development has become a prevailing strategy for today's society, increasingly aware of the new challenges we face. This is causing consumers to demand and adopt more sustainable purchasing behaviors, based on the perception of different values. This article examines the relationship between social value, economic value, and environmental value with perceived quality and perceived value as antecedents of purchase intent in the sustainable crafts sector. The data were collected through an online survey. The model has been analyzed using a SEM model with Smart‐PLS. The results show that economic and environmental values positively influence attitude and perceived quality. However, social value only positively influences attitude. Both attitude and perceived quality have a positive effect on the purchase intention of sustainable artisanal products. In the final section, we discuss in detail the theoretical and practitioner implications of the findings obtained.
Purpose
Little is known about the external stimuli, which trigger a change in a consumer's cognitive and affective state and lead to a consumer's willingness to pay a premium price (WTPPP) behavioural response. This study aims to close this knowledge gap by providing insight into how a unique combination of antecedents affects consumer attitude toward purchasing free-range eggs and leads to a behavioural response, which is measured by consumer WTPPP for free-range eggs.
Design/methodology/approach
An online questionnaire was developed, with data collected from 392 Australian consumers. This study employs confirmatory factor analysis (CFA) to examine the measurement model before testing the hypothesised relationships using covariance-based structural equation modelling (CB-SEM).
Findings
The study reveals that the tested customer perceived value (CPV) dimensions, animal welfare and source credibility are positive stimuli of consumer attitude towards purchasing free-range eggs, which subsequently promotes consumer WTPPP for free-range eggs.
Research limitations/implications
Findings drawn from Australian consumers may not be generalisable to consumers from disparate contexts, and stimuli beyond those tested may influence consumer attitude and WTPPP.
Originality/value
This is one of the first studies to use the stimulus–organism–response (SOR) theory to investigate and contribute to extant knowledge and understanding of consumer behaviour relating to free-range eggs and specifically of consumer attitude towards purchasing and WTPPP for free-range eggs. This study offers practical implications for free-range egg farmers, retailers and policymakers.
This study explores the composition and nature of the social value of tourism. The empirical data consists of 49 in-depth interviews with nature-based tourists. The inductive findings complement the current conception of social value presented by consumer value typologies, measured by value scales and evidenced in consumer value-framed tourism research. Hence, in addition to other-oriented and instrumental status and esteem dimensions, the social value of tourism also includes self-oriented components that are both intrinsic and extrinsic. This finding demands a broader conceptualisation – an extended view of social value – in tourism research and management. It captures the diverse manifestations that range from status and esteem to enjoying the company of others and feeling inclusion in a community of like-minded people as well as learning and safety. This extended view is illustrated with a novel, three-dimensional approach to the Typology of Consumer Value (Holbrook, 1999b), which provides an integrated and intelligible understanding of the richness of social value in tourism.
This study describes the process and elements presented in a value co-creation process between non-profits and donors, as well as the outcomes of this interaction. The study includes semi-structured interviews with managers and donors, as well as first-hand observation and notes from the telemarketing department of two health-related non-profits (NPOs). To represent the interaction between actors, the Yin and Yang model of value co-creation is proposed. In relation to the outcomes of this relationship, despite the elements of co-creation value that are highlighted in the literature, that is, dialog and transparency, other relevant components stood out more in this context, such as trust and reputation. This research broadens the literature in the field of NPOs, since most researches on value co-creation are centered on the private sector and focus the analysis on the end user, which in the non-profit sector of health care would be the patient. Otherwise, this research focuses on a resource integrator actor, that is, the donor. Managerial contributions and future research directions are also presented.
The potential for business opportunities live streaming services has attracted attention from individuals and businesses. Limited studies have explored the factors associated with the purchase intention of shoppers in live-streaming contexts. The purpose of this study was to examine whether social media technology readiness, perceived value, and social presence influence shoppers’ purchase intention in live-streaming contexts. The results indicated that social media technology readiness and perceived value had a significant and positive effect on purchase intention. A thorough discussion and future research suggestions are provided to obtain a better understanding of the behavioral intention of shoppers in live-streaming contexts.
This study investigates consumer purchase intention of green cosmetics and personal care products in Thailand by extending the Perceived Value Theory with ethical concern as a green consumption determinant to determine their interrelationships. The results from PLS-SEM from the responses of 423 consumers show that the perceived functional value has significant impacts on ethical concern and consumer purchase intention. The perceived emotional value is also positively correlated with ethical concern, but showed no correlation with consumer purchase intention. However, the influence of social value on ethical concern and purchase intention were not supported. Meanwhile, ethical concern is a strong predictor of green purchase intention which mediates a positive relationship between functional value and intention, as well as between emotional value and intention. However, no mediation effect was found between ethical concern and social value. These findings offer contributions toward extending the knowledge on how these multidimensional consumer values coincide and influence behavioral intention, and how they could be utilized by practitioners and policymakers to promote green product attributes linking functional and emotional perceptions with ethical considerations such as fair trade, cruelty-free and green formulation, eco-labeling, and green packaging, which may in turn increase purchase intention toward green cosmetics and personal care products that could induce a more sustainable production and consumption pattern.
The objective of this research is to understand the service e-quality dimensions that contribute to creating value for Generation Z (Gen Z) consumers when choosing Internet-Only Banks (IOBs) services. The data were collected from a sample of Gen Z IOB users in France. Structural Equation Modeling was used to test the hypotheses. Results suggest that reliability, customer service and support, product portfolio, bank transparency, personalization, and security and privacy are positively related to IOB’s consumer perceived value and that consumers’ perceived value positively affects IOB’s consumer loyalty. This study reveals that IOBs in France should focus on those dimensions to tailor a unique customer experience to Gen Z.
Purpose
Receiving Michelin stars is considered an effective marketing tool and a prestigious certification in the restaurant industry. However, the direct effects of Michelin stars on restaurant performance remain unclear. To bridge this gap, this study aims to empirically validate the “Michelin effect” on the consumption values of restaurant patrons before and after receiving Michelin stars.
Design/methodology/approach
The data, collected from OpenTable, consist of over 160,000 reviews written for 218 restaurants, including 109 Michelin-starred (treatment group) and 109 nonstarred restaurants (control group). The authors measure perceived consumption value using the collected user-generated review data. The authors estimate fixed-effect difference-in-differences regressions to validate the Michelin effect.
Findings
Michelin stars enhance social, hedonic and service quality values, which are nonfunctional values. However, no significant effects on functional consumption values, such as economic, food quality and ambience quality values, are observed, even though Michelin stars are pure awards for kitchen performance.
Practical implications
Michelin stars can be an effective marketing tool for fine-dining restaurants because customers consider emotional and nonfunctional benefits such as hedonic and social values, which are more important than functional benefits such as food value. Furthermore, Michelin effects are heterogeneous depending on the number of stars awarded, price range and customers’ gastronomic involvement. These offer a strong rationale for monitoring social media, which may help managers better understand their customers and improve their performance.
Originality/value
This study extends the current literature on the Michelin effect by quantifying consumption values using user-generated review data. To the best of the authors’ knowledge, this study offers the first empirical evidence that directly validates the Michelin effect.
Ranging from the romanticism era to the postmodern paradigm and the experiential approach, this chapter reexamines the fundamental roots of the consumption experience concept while addressing the conceptualizations and nature of customer experience. In this context, the concept of customer experience in the tourism field is outlined. We set out to readdress the essence of the customer experience in the light of the consumer value as a relevant empirical ground to study it. Hence, this chapter revisits the intricate epistemological and methodological connection of the customer experience to consumer value. This leads to a re-discussion of the key role of customer introspection approach while outlining the narration side in studying this intimate connection of both concepts in the tourism field.
Keywords: Consumption experience, customer experience, consumer value, experiential value, introspective approach, phenomenology
The sharing economy and collaborative consumption provide new opportunities in health care, especially to physicians, medical organizations, and consumers (patients). In health care services, there has been a long debate on the implementation and the characteristics of such concepts. Both terms may be very cost-effective, if applied accordingly.
The aim of this paper was to investigate whether the concepts of sharing economy and collaborative consumption can be successfully used in health care services, with a specific interest in Ophthalmology services.
The conclusions reached revealed that sharing economy in Ophthalmology services should be used from a consumer perspective, whereas the collaborative consumption concept should be used from a provider’s perspective.
The failure of customer relationship management (CRM) initiatives to improve the bottom-line has led to authors questioning the direct unconditional effects of CRM on customer loyalty, with calls for more studies to examine possible intervening variables explaining the mechanism of influence between CRM and customer loyalty. While researchers have advanced knowledge on the generative mechanisms by which CRM influences customer loyalty, the mediating role of customer perceived value (CPV) dimensions including functional, social, and emotional values have received very little attention in the literature. This chapter proposes a comprehensive model incorporating CRM, CPV dimensions (including functional, emotional, and social values), and customer loyalty. Underpinned by the resource based-view and equity theories, the proposed model explores the direct and indirect effects of CRM on customer loyalty through CPV dimensions within the banking context. The integrated framework is a result of a careful review of the literature pertaining to CRM, customer loyalty, and CPV.
This paper suggests a new perspective to evaluating innovation projects and understanding the nature of startup risks. The author considers five principal hypotheses that underlie every innovative project that comprise a bunch of respective assumptions to manage startup risks in a proactive manner. The suggested approach spots light on a project’s uncertainties and risks, embedded investment and managerial options, and enables a more comprehensive and accurate evaluation of innovation. The Hypotheses Testing Method enables estimating the risks and attractiveness of a startup project in a clear and fast manner. It replaces unclear traditional techniques like NPV and DCF, avoiding heavy cash flow modelling.
The authors examine how country characteristics systematicaliy moderate the effects of individual-level drivers of the perceived vaiue that consumers derive from visiting a brand manufacturer's Web site. They test hypotheses on data coiiected from 8886 consumers from 23 countries on three continents, involving 30 Web sites of the world's largest consumer packaged goods companies. They find that the effect of privacy/security protection on perceived vaiue is stronger for people from countries with a weak rule of law, whereas people from countries that are high on national identity give more weight to whether there is cultural congruity between the site and themseives. People who iive in more individualistic countries give more weight to pleasure, to privacy/security protection, and to customization in their perceived vaiue judgments than people from collectivistic countries. The authors discuss implications for Web site design strategies.
Consumer value is a concept of continuing interest to scholars, marketing researchers, and to many marketing practitioners. However, the presence of multiple meanings, the use of different terms, and even the existence of a diversity of opinions regarding its features and nature reflect the complexity of its study and give rise to the possibility of confusion in its application. This article presents a review of the existing literature on the concept of value in order to shed light on the confusion surrounding this construct. The analysis highlights the polysemy and the diversity of terms that have been used, along with the different definitions that have been proposed. Convergent and divergent elements are also identified. As a result of this review and analysis, the features that characterize the concept of consumer value are determined and a conceptual framework is proposed as a basis for future research.
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.
Reference links for the book review are as follows: www.jstor.org/stable/3172719 and http://jam.sagepub.com/content/19/4/392.1.extract.Otherwise, the book may be purchased via Amazon: www.amazon.com/Consumption-Values-Market-Choices-Applications/dp/0538805633.
We distinguish seduction from persuasion and other ways to draw consumers into exchange relationships. A legal case involving the prosecution of a mail fraud known as Chonda-Za is used to illustrate seduction, and the concept is defined in terms of social constructionist theory. We identify five stages in the unfolding of a seduction and draw parallels and contrasts to the formation of a normal exchange relationship. We explore the enrollment stage in more detail and model it as a matter of inducing consumers to accept progressively more involving role agreements. The distinction between legitimate and illegitimate seduction is also examined. Copyright 1995 by the University of Chicago.
In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
Cultural production concerns the creation, diffusion, and consumption of cultural products. In this article, we discuss cultural production as related to the marketing and consumption of aesthetics. The article addresses the following topics: the nature of cultural production, including the roles that producers, cultural intermediaries and consumers play in the process; emerging perspectives and ideas on cultural production; aesthetics and art in cultural production; new epistemologies concerning postmodernism and posthumanism as related to cultural production; and the implications of the cultural production processes for the marketing aspects of cultural industries. This article sets forth marketing as the context and framework for the functioning of the cultural production system.
Although researchers and managers pay increasing attention to customer value, satisfaction, loyalty, and switching costs,
not much is known about their interrelationships. Prior research has examined the relationships within subsets of these constructs,
mainly in the business-to-consumer (B2C) environment. The authors extend prior research by developing a conceptual framework
linking all of these constructs in a business-to-business (B2B) service setting. On the basis of the cognition-affect-behavior
model, the authors hypothesize that customer satisfaction mediates the relationship between customer value and customer loyalty,
and that customer satisfaction and loyalty have significant reciprocal effects on each other. Furthermore, the potential interaction
effect of satisfaction and switching costs, and the quadratic effect of satisfaction, on loyalty are explored. The authors
test the hypotheses on data obtained from a courier service provider in a B2B context. The results support most of the hypotheses
and, in particular, confirm the mediating role of customer satisfaction.
Research on how store environment cues influence consumers' store choice decision criteria, such as perceived merchandise value and shopping experience costs, is sparse. Especially absent is research on the simultaneous impact of multiple store environment cues. The authors propose a comprehensive store choice model that includes (1) three types of store environment cues (social, design, and ambient) as exogenous constructs, (2) various store choice criteria (including shopping experience costs that heretofore have not been included in store choice models) as mediating constructs, and (3) store patronage intentions as the endogenous construct. They then empirically examine the extent to which environmental cues influence consumers' assessments of a store on various store choice criteria and how those assessments, in turn, influence patronage intentions. The results of two different studies provide support for the model. The authors conclude by discussing the results to develop an agenda for additional research and explore managerial implications.
Purpose
This study developed a model of customer store loyalty for retail service based on a value‐based market orientation practice, staff performance and customer satisfaction.
Design/methodology/approach
A comprehensive qualitative study was undertaken to develop measurements, derived from both perspectives of firms and consumers. The model was then tested empirically in a retail setting in Taiwan, using a dyadic data collection approach. For each service provider from a random sample of hairdressing salons in Taiwan included in our survey, a matched set of customers provided information concerning their expectation and evaluation of service.
Findings
Our findings provide an insight into the effect of perceived customer value in market orientation practice as well as its impact on customer retention. The model indicates that marketing practitioners should manage customer satisfaction and perceptions of value in their implementation of market orientation as they are directly related to customer store loyalty.
Research limitations/implications
This study involved only one service industry (hairdressing salons) in one country (Taiwan). However the scales and methodology described here could and should be replicated in other settings.
Practical implications
By using our scale and results, service providers may be able to enhance their customers' perception of value and increase their degree of store loyalty.
Originality/value
Despite the importance of customer value for organizations seeking to become market oriented, customer value measures are not included in market orientation scales. This study shows how including customer value into market orientation measurements can assist in enhancing business performance via customer retention.
The purpose of this article is to present a systematic review of the extensive research that has been conducted on the conceptualization of perceived value. The major conclusions of the present study are: (i) that both uni-dimensional and multi-dimensional models of value have their roles to play in providing simplified (uni-dimensional) and complex (multi-dimensional) understandings of the concept; (ii) that the nature of perceived value is complex and multi-dimensional; (iii) that the concept of perceived value implies an interaction between a consumer and a product; (iv) that value is relative by virtue of its comparative, personal, and situational nature; and (v) that value is preferential, perceptual, and cognitive-affective in nature. By organizing and synthesizing the major research streams and the individual studies within them, the present study thus provides a comprehensive framework for future studies of the dimensionality of perceived value.
Purpose
To develop a conceptual framework for temporal and spatial e‐service value.
Design/methodology/approach
In the empirical study, the temporal and spatial value of e‐services is qualitatively explored. Positioned within service research, a conceptualisation of customer perceived value based on benefit and sacrifice of technical, functional, temporal and spatial dimensions is used.
Findings
The qualitative study identifies subdimensions of temporal and spatial value. In addition to benefits such as access and flexibility, these subdimensions also involve aspects related to temporal and spatial sacrifice. The subdimensions indicate the versatility of the dimensions. Another finding is the interdependence between the benefit and sacrifice of service value.
Research limitations/implications
Extends prior research by qualitatively describing benefit and sacrifice of temporal and spatial value. Presents a conceptual model of temporal and spatial e‐service value. Future research needs to quantitatively validate the subdimensions of the temporal and spatial dimensions across different contexts.
Practical implications
Shows what temporal and spatial aspects in services create value for customers, especially in an e‐service context. Particularly, it identifies aspects that decrease the perceived service value. An important marketing challenge is to emphasize and develop the value‐increasing parts of a service while understanding and reducing its value‐decreasing components.
Originality/value
Contributes to marketing research and practice with its conceptualisation of temporal and spatial e‐service value. The importance of time and location in creating customer perceived value is emphasised.
In the modern customer-centred era, customer value is a strategic weapon in attracting and retaining customers. Delivering superior customer value has become a matter of ongoing concern in building and sustaining competitive advantage by driving customer-relationship-management (CRM) performance. However, related studies are rather divergent, the key dimensions of customer value remain unclear, and there is no agreement on the evaluation of CRM performance. This paper develops an integrative framework for customer value and CRM performance based on the identification of the key dimensions of customer value. Emphasising the customer equity-based view, the paper explores the decomposed effects of customer value on CRM performance in terms of relationship quality and customer behaviours. In doing so, a structural equation model is developed using the partial least square method supported by an empirical investigation of customers in China.
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.
Purpose
To propose an alternative model specification for better conceptualizing the definition of a customer perceived value construct, and to discuss the theoretical justification of the model.
Design/methodology/approach
The proposed model was elaborated based on theoretical contexts. Three models of different conceptualization specifications were estimated and compared with eTail service value survey data.
Findings
Based on theory, perceived value should be conceived as a formative construct. The empirical results demonstrated different parameter estimates and thus conclusions are drawn from different conceptualization methods.
Research limitations/implications
Future research is suggested to apply the proposed formative value model in other marketing settings, and to explore the role of consumer satisfaction in post‐purchase behavior.
Practical implications
Marketing resources allocation and communication programs may be influenced due to different conceptualization methods of value construct applied by practitioners.
Originality/value
This paper provides a theoretical rationale for conceptualizing perceived value with formative specification. It stresses that the theoretical justification is a major concern for determining conceptualization models.
The concept of customer orientation in salespeople is defined, a scale is developed to measure the degree to which salespeople engage in customer-oriented selling, and the properties of the scale are reported. A test of the nomological validity indicates the use of customer-oriented selling is related to the ability of the salespeople to help their customers and the quality of the customer-salesperson relationship.
Both practitioners and academics understand that consumer loyalty and satisfaction are linked inextricably. They also understand that this relation is asymmetric. Although loyal consumers are most typically satisfied, satisfaction does not universally translate into loyalty. To explain the satisfaction–loyalty conundrum, the author investigates what aspect of the consumer satisfaction response has implications for loyalty and what portion of the loyalty response is due to this satisfaction component. The analysis concludes that satisfaction is a necessary step in loyalty formation but becomes less significant as loyalty begins to set through other mechanisms. These mechanisms, omitted from consideration in current models, include the roles of personal determinism (“fortitude”) and social bonding at the institutional and personal level. When these additional factors are brought into account, ultimate loyalty emerges as a combination of perceived product superiority, personal fortitude, social bonding, and their synergistic effects. As each fails to be attained or is unattainable by individual firms that serve consumer markets, the potential for loyalty erodes. A disquieting conclusion from this analysis is that loyalty cannot be achieved or pursued as a reasonable goal by many providers because of the nature of the product category or consumer disinterest. For some firms, satisfaction is the only feasible goal for which they should strive; thus, satisfaction remains a worthy pursuit among the consumer marketing community. The disparity between the pursuit of satisfaction versus loyalty, as well as the fundamental content of the loyalty response, poses several investigative directions for the next wave of postconsumption research.
To practitioner and researcher alike, consumer values play an important role in understanding behavior in the marketplace. This paper presents a model linking perceived product attributes to values.
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
To practitioner and researcher alike, consumer values play an important role in understanding behavior in the marketplace. This paper presents a model linking perceived product attributes to values.
The concept of customer orientation in salespeople is defined, a scale is developed to measure the degree to which salespeople engage in customer-oriented selling, and the properties of the scale are reported. A test of the nomological validity indicates the use of customer-oriented selling is related to the ability of the salespeople to help their customers and the quality of the customer-salesperson relationship.
Driven by more demanding customers, global competition, and slow-growth economies and industries, many organizations search for new ways to achieve and retain a competitive advantage. Past attempts have largely looked internally within the organization for improvement, such as reflected by quality management, reengineering, downsizing, and restructuring. The next major source for competitive advantage likely will come from more outward orientation toward customers, as indicated by the many calls for organizations to compete on superior customer value delivery. Although the reasons for these calls are sound, what are the implications for managing organizations in the next decade and beyond? This article addresses this question. It presents frameworks for thinking about customer value, customer value learning, and the related skills that managers will need to create and implement superior customer value strategies.
Compared to the emphasis that service quality research has received in service marketing, much less work has been done on the role of price perceptions and their effect on customer retention. This article seeks to fill this gap in the literature. The authors build propositions of price’s role vis-à-vis customer value, satisfaction, and behavioral intentions and then test these propositions using empirical data from the banking industry in the United States and New Zealand. Their findings indicate that (a) price perceptions have a stronger influence on customer value perceptions than quality, and (b) price perceptions, when measured on a comparative basis, have a significant direct effect on customer satisfaction and behavioral intentions— over and above their mediated effect through the construct of customer value. These results indicate that price perceptions significantly affect customer retention and suggest that managers may benefit from actively managing consumers’ price perceptions, in addition to consumers’ quality perceptions.
Relationship quality is an emerging concept that attempts to measure the lifetime value of a customer. A review of the literature reveals that the indicators that determine the construct are satisfaction with the relationship, the customer's trust and the customer's level of commitment. The paper also considers how the perceived value of a purchase influences the quality of the relationship with an establishment, i.e. how a single transaction influences the valuation of a whole relationship. Gummeson [1987] considers that the quality of the relationship is the value accumulated during/throughout the relationship. This posits the existence of a causal link between perceived value and relationship quality. On the basis of an Expectancy-Value Model [Fishbein and Ajzen, 1975], and the model of Berkowitz [1993], we consider the relationships among the variables of the model. The results show that affect plays a fundamental role in long term valuation, while cognition is more influential in the short term. Another important conclusion is that the affective valuations made during the first moments have decisive consequences in the long term.
The present study examines the relationships among customer satisfaction, service quality and perceived value. These variables are increasingly recognised as being sources of competitive advantage. However, little empirical research has been conducted to examine these variables simultaneously and their relationships with post-purchase behaviour. The present study was therefore designed to develop an understanding of the relationships among these variables and their influence on postpurchase behaviour. An integrative model was developed and tested using data collected from customers in the restaurant industry. The results reveal that customer satisfaction and perceived value significantly influence post-purchase behaviour. Implications of the findings and areas for future research are discussed.
An expanding array of technologies exist that can enable retailers to add value to product/service offerings online. Yet for many firms, determining which applications to employ can be perplexing. This study examines dimensions of service orientation among market leaders and measures performance results of adopting selected customer service applications. Findings suggest that while a majority of retailers use the Internet to enhance company image, greater pay-offs come from offering more online services, particularly those that may be used by customers in the acquisition process (e.g., e-mail and online ordering) and for post-purchase support.
This article investigates the influence of French and American national culture on consumer perceptions of productrelated
value. Employing means-end theory, hypotheses are developed to predict how French versus American national culture influences
the content and structure of consumer value hierachies. Hypotheses are tested using data from in-depth laddering interviews
with a matched sample of French and American consumers. The findings support the contention that differences exist in the
meaning and relative importance of consumer value hierarchy dimensions across the two national cultures. Furthermore, the
analysis suggests that consumption consequences are especially culturally sensitive.
One of the greatest challenges for the industrial marketing manager is to incorporate the “voice of the customer” into the design of new products and services. In this paper, we suggest a three-step approach to fine-tune the product and service offerings of the company. We illustrate how to use a conjoint analysis to bridge the information gap between the company and its customers—by confronting the value the company intends to offer with the value desired by its customers. The illustration is based on a case study in business-to-business marketing, conducted at a technology-based multinational company of office equipment. Different service offerings were presented to customers and prospects, as in a real-life purchasing situation. Based on the results, different types of newly designed services that increase the value for the customer could be developed.
Purpose
The purpose of this paper is to demonstrate the need for an improved understanding of consumer value for online grocery purchases and to propose the notion of “integrated service solution” packages as a strategy for growing and successfully sustaining the channel to guide both marketing strategy and policy.
Design/methodology/approach
This paper integrates and synthesises research from retailing, consumer behaviour and service quality literatures in order to develop a conceptual framework for understanding the value of e‐grocery shopping to aid practitioners to address the critical needs, expectations and concerns of consumers for the development of grocery shopping within the online environment.
Findings
This paper offers an alternative approach to allow e‐grocery to become a mainstream retail channel in its own right and not to compete with the in‐store offerings. The research demonstrates the need for a progressive approach that follows contemporary consumer needs and habits at the household level. The conjecture is that shopping for fast‐moving consumer goods follows a learning path that needs to be replicated in the online context. Moreover, it is suggested that consumer resistance to the adoption of the new channel should be addressed not only from a technological perspective but also from the social aspects of online shopping.
Originality/value
The research provides a practical framework for both retailers and policy makers on how the “next generation” of online services can be developed using a “bottom up” consumer perspective. This paper also advocates a non‐technological bias to e‐grocery retailing strategy.
Shopping malls and the Internet have become major competitors, providing multiple dimensions of consumer value ranging from economic or functional value to hedonic or experiential value. The selection of the Internet versus the mall for shopping can vary for different consumers and in different situations, even for the same consumer. This study’s framework was based on Holbrook’s consumer value typology that includes four components: efficiency (extrinsic/active), excellence (extrinsic,reactive), play (instrinsic/active),and aesthetics (instrinsic/reactive). Based on the consumer value experienced by mall and Internet shopping, each retailer must implement strategies that will lead to consumers’ enhanced shopping experience.
Women’s current high levels of education and participation in the labor force have focused attention on their changing lifestyles and consumption patterns, which create a challenge to marketers who are desperate to explore this new market opportunity. This study investigates the significance of the emerging roles of Chinese women in Hong Kong to marketers and also helps to identify some common roles held by Hong Kong females, who are influenced by Chinese and western cultures. Through personal interviews, data were collected in the form of a structured questionnaire from a sample which consisted of 1,000 Chinese females randomly selected in Hong Kong – one of the most important cities in Southern China. This study successfully segmented Hong Kong’s females into three different groups based on six female role orientation dimensions: individualists, traditionalists, and pro-docietalists. These three groups were found to be statistically significant in demographic characteristics, such as age, educational level, martial status, and number of children, as well as in consumption values associated with purchase decisions. Implications were drawn for marketing practitioners and directions for future research were provided.
Two decades ago, (macro)marketing researchers awoke to the hedonic and experiential aspects of consumption—sometimes known as fantasies, feelings, and fun or the “three Fs.” More recent literature has further extended our view toward a broadened recognition of “four Es”—experience, entertainment, exhibitionism, and evangelizing. This essay presents the third in a three-installment series reviewing each of the four Es, namely, part 4 on evangelizing.
An experiential value scale (EVS) reflecting the benefits derived from perceptions of playfulness, aesthetics, customer “return on investment” and service excellence is developed and tested in the Internet and catalog shopping context. This study evaluates the psychometric properties of the EVS in both samples and tests the hypothesized hierarchical structure. Predictive modeling points to the value of the EVS as a measurement tool, useful in describing the perceived make-up of a retail value package and predicting differences in shopping preferences and patronage intent in multichannel retail systems. Study limitations and directions for future research are identified.
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
The concept of customer value is becoming increasingly used in strategy and marketing literature in recent years. Customer value is considered central to competitive advantage and long-term success of business organizations. Consequently, a great importance attached to this concept. This paper attempts to build an integrative configuration of the concept of customer value that reflects its richness and complexity. It reviews, synthesizes and extends the literature on the subject. The configuration includes three complementary models, namely: customer value in exchange, customer value buildup, and customer value dynamics. Thinking about customer value in this way is helpful in the designing of and studying service offerings.
Purpose – To examine empirically the mediating role of relationship quality on the relationships between relational selling behavior, network quality, service recovery, and loyalty, and the moderating role of prior IT experience on the above relationships in ISP service. Design/methodology/approach – Data were obtained via questionnaires from randomly selected ADSL customers of Chunghwa Telecom. The constructs were measured using existing scales. SEM was used to examine the effects. Findings – Relational selling behavior, network quality, and service recovery indirectly influence loyalty through the mediation of relationship quality, consisting of satisfaction and trust. The effects of relational selling behavior on satisfaction and trust are stronger for inexperienced than for experienced customers. Those of network quality on satisfaction and trust are similar for both experienced and inexperienced customers. Those of service recovery on satisfaction and trust are stronger for experienced than for inexperienced customers. Research limitations/implications – There are three limitations. First, customer loyalty may be only partially reflected since it was measured by self-reports. Second, there may exist common method variance. Third, the generalizability of the findings might be limited. Practical implications – IT service organizations should invest in training programs and advertising campaigns, the ways of transferring information and services to users, to improve relationship quality. Managers should be careful not to try partnering initiatives with customers without knowing their prior IT experience. Originality/value – This study presents a thorough understanding of how relational selling behavior, network quality, and service recovery indirectly influence loyalty through satisfaction and trust, and how prior IT experience moderates the above relationships in ISP service.
Although customer-perceived value is discussed widely in the literature, few empirical studies have been conducted due to an absence of operational measures. Reports on the development of measures and tests two customer-perceived value structures using data collected from industrial customers of the information technology industry. The findings generally support both structures and provide empirical support for a value proposition with 13 value drivers. Furthermore, results indicate that most of the 13 drivers are assessed in a similar way by industrial customers of three service sectors surveyed, ICE (information, communication, entertainment), distribution and finance. Flexibility and responsiveness – two service-related benefits – are important value drivers for all the business customers surveyed. Relationship value drivers are assessed the most differently in two of the three sectors studied, finance and ICE (information, communication, entertainment).
The authors examine two aspects of brand loyalty, purchase loyalty and attitudinal loyalty, as linking variables in the chain of effects from brand trust and brand affect to brand performance (market share and relative price). The model includes product-level, category-related controls (hedonic value and utilitarian value) and brand-level controls (brand differentiation and share of voice). The authors compile an aggregate data set for 107 brands from three separate surveys of consumers and brand managers. The results indicate that when the product- and brand-level variables are controlled for, brand trust and brand affect combine to determine purchase loyalty and attitudinal loyalty. Purchase loyalty, in turn, leads to greater market share, and attitudinal loyalty leads to a higher relative price for the brand. The authors discuss the managerial implications of these results.
The construct of perceived value has been identified as one of the most important measures for gaining competitive edge (A. Parasuraman, 1997), and has been argued to be the most important indicator of repurchase intentions (A. Parasuraman and D. Grewal, 2000). Thus, the measurement of perceived value may have far reaching implications for the recreation and tourism fields. The purpose of the current study was to develop a multidimensional scale for the measurement of perceived value of a service. A 25-item instrument, the SERV-PERVAL scale, was developed to measure the construct and its dimensions. Five dimensions were identified, and were found to have content validity by a panel of experts. The instrument was further found to be reliable, and have convergent and discriminant validity. (PsycINFO Database Record (c) 2012 APA, all rights reserved)