Customer value creation is widely discussed in the practitioner literature and is often a part of organizations' mission statements and objectives. It is seen by many commentators as the key to long-term success, with Albercht arguing that “the only...
Customer value creation is widely discussed in the practitioner literature and is often a part of organizations' mission statements and objectives. It is seen by many commentators as the key to long-term success, with Albercht arguing that “the only thing that matters in the new world of quality is delivering customer value.” Despite this emphasis, little research has addressed the value construct itself and there is no well-accepted value measure, even in the retail environment in which customers evaluate products before purchase.
The component of perceived value has been identified as one of the most important measures for gaining competitive edge, and has been argued to be the most important indicator of repurchase intentions, Thus, the measurement of perceived value may have far reaching implications for the hotel fields. While recent multidimensional scales have been created for measuring the perceived value of tangible products, a multi-dimensional scale for the measurement of perceived value of intangible services does not exist, Thus, the purpose of the current study is to develop a multi-dimensional scale for the measurement of perceived value of service.
Perceived value was a priori conceptualized as a multi-dimensional construct, including the dimensions of quality, emotional response, monetary price, behavioral price and reputation. Quality was defined as a consumer's judgment about a product or service's overall excellence or superiority. Emotional response was defined as a descriptive judgment regarding the pleasure that a product or service give the purchaser. Monetary price was the price of a service as encoded by the consumer. Behavioral price was defined as the price(non-monetary) of obtaining a service, which included the time and effort, used to search for the service. Finally, Reputation was defined as the prestige or status of a product or service, as perceived by the purchaser, based on the image of the service provider.
Specifically the purpose of this study is to theoretically develop the concept of customer value, customer satisfaction and repurchase intention to test a theoretical framework that attempts to explain how the perception of customer value and strength of market competition influence customer satisfaction and repurchase intention. The proposed model was tested for the hotel service industry using SPSS 10.0 version.
Finding from testing the theoretical model support all a priori hypotheses. They provide the evidence that: H1: The perceived customer value is positive effect on customer satisfaction. H1-1: The perceived customer value for quality is positive effect on customer satisfaction. H1-2: The perceived customer value for emotional response is positive effect on customer satisfaction. H1-3: The perceived customer value for behavioral price is positive effect on customer satisfaction. H1-4: The perceived customer value for monetary price is positive effect on customer satisfaction. H1-5: The perceived customer value for reputation is positive effect on customer satisfaction. H2: The perceived customer value is positive effect on repurchase intention. H2-1: The perceived customer value for quality is positive effect on repurchase intention. H2-2: The perceived customer value for emotional response is positive effect on repurchase intention. H2-3: The perceived customer value for behavioral price is positive effect on repurchase intention. H2-4: The perceived customer value for monetary price is positive effect on repurchase intention. H2-5: The perceived customer value for reputation is positive effect on repurchase intention. H3 : The customer satisfaction is positive effect on repurchase intention.
The finding that perceived value was an important contributor to customer satisfaction and intention has two important implications. hotel service managers, perceived value needs to be considered in conjunction with quality, emotional response, behavioral price, monetary price and reputation when designing and delivering the service offering. For researcher, perceived value should be incorporated into models designed to understand the determinants of customer satisfaction and response.