The Consumption-System Wireless Telecommunications and the Perceived Value - Loyalty Intentions Link

Firms are increasingly involved in marketing of consumption-systems that contain both a significant product and service subsystem (Mittal, Kumar and Tsiros 1999). Consumers evaluate the value of the product and the service both separately but also virtually combined. As a result, Shankar et al. (2009) posit that products and services combined into innovative marketing offerings help companies to attract new customers and increase demand among existing ones by providing superior perceived value. Following urges from research (Johnson, Herrmann and Huber 2006) and practice (Shankar, Berry and Dotzel 2009) alike, the interactions between the perceived value of the product (e.g., cellular phones) and the service (e.g., wireless telecommunication services) as well as their affect on loyalty intentions require clarification. The objective of this study is to examine the degree to which perceived value gained from the performance in one part of the system (as with the product) affects perceived value gained from the performance in the other part of the system (as with the service) and vice versa.