Perceived Value of Online Services: Scale Validation and Managerial Implications

Abstract

Marketing literature states perceived value is crucial in predicting customer choice in marketing literature. However, perceived value of online services can be different from its offline counterpart due to its temporal and spatial nature, which has been relatively under-researched, where a lacuna of theoretical frameworks and well accepted measurement scales exists. This paper addresses the above research gap by developing a 19-item measurement scale that can be used to assess perceived value of online services. Data collected from a questionnaire survey of 147 customers of hotels in Sri Lanka were used to assess the reliability and validity of the proposed scale in a post-purchase situation, using exploratory and confirmatory factor analyses. The findings produces six value dimensions (conditional, epistemic, social, monetary, convenience and emotional value) all of which were found to demonstrate acceptable psychometric properties based on a variety of reliability and validity tests. Managerial and theoretical implications stemming from the empirical findings are also discussed.