Extensions on the conceptualization of customer perceived value: insights from the airline industry

Purpose: The purpose of this paper is to test and compare different conceptual approaches for perceived value in a service context.
Design/methodology/approach: Three different modelling approaches (Type I, Type II and Type IV) for perceived value were compared using data from an inflight survey. The questionnaires covered topics such as perceived service quality and overall satisfaction, price perception, customer value, and customer retention.
Findings: The theoretical discussion repeats to emphasize that only the formative modelling of perceived value fits best into the arguments put forward in the existing literature. Perceived value is an outcome construct which results from various benefits received and sacrifices devoted to achieve a particular exchange of a service. Details about the impact of the proposed seven 'get' and 'give' components are reported together with an analysis of the consequences perceived value entails on satisfaction, loyalty and word-of-mouth.
Research limitations/implications: Extensions and improvements with regards to measurement and conceptual issues are suggested.
Practical implications: Perceived value shows a substantial effect on behavioural consequences. Service operations have to observe the perception of atmospherics emerging from the main service encounters besides the consideration of functional aspects.
Originality/value: Misconceptualizations of multi-item constructs are meanwhile well-known. However, critical discussions and empirical tests are still scarce in the tourism field. Hence, this study replicates and extends Lin et al.'s (2005) study in the airline service context.