Customer Perceived Value

Customer perceived value has recently attracted the attention of research community. The
overall, firms who want to have a strong and stable relationship with their customers should
provide high value products to customer. Also they should provide this value in a distinctive
way to create a competitive advantage and in turn enhance their viability .Value perceived by
customer is formed by a judgment about what is given and what is obtained in a certain
transaction. According to Roig et al (2007), Perceived value consists of two elements that are
benefits and sacrifices associated with a certain transaction. Value is a consumer perception
about final worth of a service or product with respect to its benefits and costs.
Customer value can be broadly overall assessment of the utility of a product based on
perceptions of what is received and what is given (Zeithaml, 1988). A number of researchers
have investigated the role of customer value in consumption contexts. For example, Zeithaml
(1988) provided evidence supporting an influential role of value in consumers on purchase
decision making.
According to the means end model proposed by Zeithaml (1988), perceived value is a direct
antecedent of a purchase decision and a direct consequence of perceived service quality.
Dodds et al. (1991) conceptualized perceived value as a trade between perceived quality and
perceived psychological as well as monetary Dodds and Monroe, 1985; Monroe and
Chapman, 1987; Teas and Agarwal, 1997).