Service Value Determination:

Abstract

The authors investigate the efficacy of an integrated perspective on perceived service value, derived out of bringing together two consumer behavior research streams, those of utilitarian and behavioral theories. Theoretical, arguments and empirical evidence are used to show that the integrative perspective provides a better representation of perceived value than either the utilitarian or the behavioral perspective alone. Additionally, acquisition utility is shown to be similar to perceived quality, suggesting that a more parsimonious representation of perceived value entails the use of transaction utility and perceived quality as predictor variables. Finally, the authors argue that within a service encounter context, perceived quality of the service assumes more importance than price perceptions in explaining perceived value. Managerial implications and future research directions are discussed.