Assignment 2

Literature Review & Proposed Conceptual

Model on

Perceived Value of Thai Airways

Business Research Methodology

MGT 3940
Submitted to
Dr. Sasithorn Phonkaew

By
Proposed by
Group 4 Section 415

1. Ms. Thippawan Pamornsuphakul 5010748

2. Mr. Krongpol Busabok 5011306
3. Ms. Jirawan Jiraveatthaworn 5013907
4. Ms. Janenij Wittayasai 5114450
5. Mr. Sovuthy Oum 5115360
6. Mr. Phamorn Luangamorn 5137599

Semester 1/2010
Assumption University

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 Introduction

In this report, we intend to introduce the conceptual model

of customers perceived value for Thai Airways. Also, this report
included 3 research papers that we borrow 4 important factors in
their conceptual model that study related to customers perceived
value.

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 Literature Review

First literature study:

“A great place to live, work and play. Conceptualising place satisfaction in

the case of a city’s residents.” (Insch and Florek, 2008)

Summary of this Paper:

This paper's objective is to explain about the great place that the

people live, work and play is not concerned about money, but it

concerned about their satisfaction. The researchers hypothesized that if

the people who live inside the city have positive attitude with their life, it

will be great for the city in order to crate strongly good image to tourists

and visitors. In other way, if the people have negative attitude with their

life, it will be harmful to their city. However, an assumption which state

that the people live in communities because of satisfying their preferences

is not always true. The people also want to find a risk or it is difficult to

move to another place.

This paper which was motivated by the real need made a reliable

evaluation of quality of life and wellbeing

Variables studied of this Paper

1. Customer expectations: Customer expectations are measures the

customer’s anticipation of the quality of a company’s product or

services.

2. Perceived quality: Perceived quality is the evaluation of the

customer’s evaluation via recent consumption experience of the

quality of a company’s products or services.

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Conceptual Model of This paper

In this case we will borrow “Customer Satisfaction” from this paper.

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Second literature study:

“Conceptualizing tourist satisfaction at the destination level.”

(Tanja Dmitrovic, Ljubica Knezevic Cvelbar, Tomaz Kolar, Maja Makovec Brencic,

Irena Ograjensek and Vesna Zabkar, 2009)

Summary of this Paper

The purpose of this study is to examine the conceptual framework

for measuring tourist satisfaction and to provide a destination

management organization with a comprehensive tool for understanding

the key factors of destination competitiveness and improve the quality.

These study want to develop a standard model of the antecedent and

consequence of customer satisfaction and thereby provide a conceptual

basis for develop a universal, parsimonious, short and easy applicable

measurement instrument.

Variables studied of this Paper

1. Quality

Quality is an antecedent to customer satisfaction. A number of studies

in tourism research confirm a positive relationship between quality

and satisfaction and between perceived value and satisfaction. Several

studies also found that that the relationship between perceived quality

and customer satisfaction is partly mediated by perceived value.

2. Costs and Risks

Costs and risks (sacrifices) are negatively related to perceived value

and adversely affect customer satisfaction. The sacrifice construct

includes the element of price, non-price components (e.g. the time

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 and effort invested in pre-purchase activities, the actual purchase

process, etc.) as well as the risks associated with the purchase (social

desirability, security, etc.).

3. Image

Image is a direct antecedent of the evaluation of the stay and future

behavior, where perceived quality acts as a mediator between

destination image and satisfaction.

Conceptual Model of this Paper

We will borrow “Quality and Image” from this paper and we will reverse

to “Product Quality and Airline Image”.

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Third literature study:

“Modeling the relationship between perceived value, satisfaction and

repurchase intentions in a business-to-business, service context: An
empirical examination.” (Patterson and Spreng, 1997)

Summary of this Paper:

This paper's objective is to define the relationship among perceived

value, satisfaction and repurchase intentions for professional business

service base on empirical examination. The researchers hypothesized that

perceived value and satisfaction are important factors of repurchase

intentions. Moreover, they also investigate to delineate the number and

nature of service performance dimensions that influence on both

perceived value and satisfaction.

After finishing study the relationship among value, satisfaction and

repurchase behavior in a business-to-business services context, they found

out that perceived value is completely mediated through satisfaction in

influencing repurchase intentions.

Variables studied in this paper:

1.Outcomes:

Produced results which are able to implement. Produced results

which enable to increase the organization's effectiveness.

2.Method:

The organization used the most up to date methodologies on the

assignment, so it is reflecting the innovative ideas and solution, and

creativity exhibited.

3.Service: Represent the level of service provided including attributes such

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as reliability in meeting deadlines, responsiveness, dependable, and

general professionalism displayed.

4.Relationship:

Established a good rapport and relationship development between

client, service provider.

5.Global:

Depicting the expectation of many clients that the consultant has

access to a global network of contacts and sources of information.

6.Problem Identification:

Clients had an expectation that the consultants should take time

to familiarize themselves with the firms' goals and thoroughly understand

the nature of the problem before commencing any work.

Conceptual Model of this paper

In this case we will apply “Service” from this paper to use as our model

by converting from “Service” to “Service Quality of Staff”.

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 Proposed Conceptual Model
p
Product Quality
- Airport Lounges

- Comfort Amenities

- Innovative Aircraft

- In-flight entertainment

- Electronic Ticketing

Customers Expectation
- Safety

- Friendly

-Comfortable

-Timely

-Precious

Perceived Value of Thai

Airways
Service Quality of Staff
- Hospitality
- Sincerity
- Politeness
- Professionalism
- Prestige

Airline Image
- Reputation
- Reliability
- Consistency
- Unique
- Luxury 8
 Definition of Customer Perceived Value

Paper 1:

“A great place to live, work and play. Conceptualizing place satisfaction

in the case of a city's residents” (Insh and Florek, 2008)

Perceived value is a measure of quality relative to price paid or the

value for money aspect of the customer experience. So value is defined as

an assessment of the ratio of perceived quality relative to price.

Source: (O'Loughlin and Coenders, 2002)

Here, customer perceived value is measured by two factors:

 Perceived quality: is the evaluation of the customer via recent

consumption experience of the quality of a company's products or

services. Basically, customers define the overall qualities such as

product or service quality itself, brand and emotional experience

that they have known to judge their perceived value.

 Customer expectations: it measures the customer anticipation of

the quality of a company products or services. Customer

expectations is very important to establish the benchmark against

which customer evaluate the quality of products and services. So, to

recruit and retain valued customers, policy makers and planners

have to consider the quality of products, motives, expectations and

needs of current and prospective customers.

Source: ACSI (2008)

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Paper 2:

“Conceptualizing tourist satisfaction at the destination level”

(Tanja Dmitrovic, Ljubica Knezevic Cvelbar, Tomaz Kolar, Maja Makovec Brenc )

The conceptualization of perceived value is perhaps the most

controversial of all evaluative constructs which for m an integral part of

customer satisfaction models.

Source: Rust and Oliver (1994)

Based on the premise that measurement at the destination level in

fact captures tourist Cumulative satisfaction, we follow Parasuraman

view that quality is an antecedent to customer satisfaction. A number of

studies in tourism research confirm a positive relationship between

quality and satisfaction and between perceived value and satisfaction.

Source: Murray and Howat, 2002

Several satisfactions is partly mediated by perceived value

Source: Chen and Tsai, 2007; Johnson

Previous research results therefore support the view that perceived

value and quality are distinct constructs, both affecting tourist

satisfaction previous research results therefore support the view that

perceived value and quality are distinct constructs, both affecting tourist

satisfaction directly, and that the effect of quality on satisfaction is

partly mediated by perceived value.

P1. The quality of tourist offers at the destination level affects

tourist satisfaction.

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 P2. The perceived value of a tourist destination’s offer affects

tourist satisfaction.

P3. Quality influences the perceived value of a tourist

destination’s offer.

Source: Hence

Paper 3:

“Modeling the relationship between perceived value, satisfaction and

repurchase intentions in a business-to-business, services context: an

empirical examination” (Paul G. Patterson and Richard A. Spreng)

Perceived value is of significance to marketing scholars since it may

alter the direction (satisfied/dissatisfied) and the degree or intensity of

satisfaction/dissatisfaction experienced

Source: Spreng et al., 1993

Perceived value is frequently conceptualized as involving a consumer’s

assessment of the ratio of perceived benefits and perceived costs

Source: (Liljander and Strandvik, 1992; Monroe, 1990; Zeithaml, 1988)

They hypothesize that perceived value and satisfaction are important

antecedents of repurchase intentions. In addition, most studies modeling the

impact of perceived performance on satisfaction or behavioral intentions

have done so at the aggregate construct level, despite the fact that

examining the effect of individual dimensions of performance attributes has

potentially great utility for practicing managers. Therefore, the second

objective is to delineate the number and nature of dimensions of perceived

performance. The third aim is to assess the relative impact of each service

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performance dimension on both perceived value and satisfaction. The

significance of service quality and customer satisfaction has been widely

discussed in the literature

Source: (Bloemer and deRuyter, 1995; Grnroos, 1984; 1988; Gummesson,

1993; Parasuraman et al., 1985; 1988; Patterson and Johnson, 1993)

Perceived value is a “richer measure of customers’ overall evaluation of

a service than perceived service quality”. More comprehensive

Source: Bolton and Drew (1991)

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 References

Insch and Florek.(2008) “A great place to live work and play

conceptualizing place satisfaction in the case of a city’s residents” Journal

of Place Management and Development Vol.1 No.2, pp.138-149

Dmitrovic, Cvelbar, Kolar, Brencic, Ograjensek and Zabkar. (2009)

“Conceptualizing tourist satisfaction at the destination level.”

International Journal of Culture, Tourism and Hospitality Research Vol.3

No.2, pp.116-126

Patterson, Spreng. (1997) “Modeling the relationship between perceived

value, satisfaction and repurchase intentions in a business-to-business,

service context: An empirical examination.” International Journal of
Service Industry Management Vol.8 No.5, pp. 414-434

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