The Influence of Price-Based Measures on Perceived Service Value

Abstract

An investigation of perceived service value was conducted with specific reference to hospitality services. The influence of price-based measures on perceived service value was examined within the framework of the utilitarian theory. It was argued that price based measures of acquisition and transaction utilities may provide reasonable representation of perceived service value. The operationalization of acquisition and transaction utilities was elaborated upon and it was argued that within a service exchange context, acquisition utility may outperform transaction utility in explaining variance in the perceived value model. The results provided support for the argument. Managerial implications and future research directions are discussed.