Perceived value: a critical examination of definitions, concepts and measures for the service industry

TLDR

The paper reviews current concepts and measures of perceived value, aiming to provide a comprehensive, systematic overview that deepens understanding for academics and industry. It discusses common definitions, conceptual and measurement approaches to perceived value and their close links to service quality and customer satisfaction. The review synthesises foundational theories, maps research streams, identifies unresolved issues, and offers recommendations for future research and application in the service industry.

Abstract

Purpose The aim of this paper is to provide a literature review of the state‐of‐the‐art and up to date concepts and measures undertaken in the research on perceived value. The purpose especially is to provide a comprehensive and systematic overview of the research on perceived value. Design/methodology/approach The common perceived value definitions, conceptual and measurement approaches and its close relationship with important and highly researched service industry components such as service quality and customer satisfaction are discussed. Findings This paper demonstrates underlying and foundational theories, systematises the research streams and addresses the unsolved concerns of perceived value. The paper concludes with recommendations for the future research and application of perceived value as being relevant to the service industry. Originality/value The contribution of the paper lies in achieving a more profound understanding of the nature of perceived value for, equally, academics and industry.