Introduction

The use of the concept of perceived value has been regarded as imperative prerequisite for
business sustainability especially in fierce market competition and has been considered as the
key of success for all companies (Huber et al., 2001). It has become an interested topic since
decades ago, yet the consensus regarding its definition and the concept has not been obtained
and remains unclear (Sanchez-Fernandez and Iniesta-Bonillo, 2007). It has been proven that
the used of the concept of customer perceived value does not only result in creating more
satisfied customer, but more importantly it is also found to have direct effect on customer
repurchase intention and loyalty (Lin et al., 2005). In simple words, the more benefits the
product or the service offer, the more satisfied the customer, thus the higher chances that
lead to positive behavior. Unfortunately, with the nature of product characteristic, there
are various types of value dimensions that can be found or created for one type of product or
service. Consequently, it may be difficult to identify what type of value that company can
deliver or offer to the customer through their product. This leads to the need for the better
perspective of perceived value in order to help identifying its dimensions. This study focuses
on the generic dimensions of perceive value especially in product or non-service related
context.

2. Concept of Perceived Value

The lack of agreement related to the definition and conceptualization of perceived value
among the scholars have indicated that perceived value can be described as the complex
construct (Lapierre, 2000). The differences of opinions can be seen from two major
perspective or view of perceived value; those are as unidimensional construct and multi-
dimensional construct (Sanchez-Fernandez and Iniesta-Bonillo, 2007). Although the
majority of the researchers agree that perceived value should be considered as multi-
dimensional construct. Sanchez-Fernandez and Iniesta-Bonillo (2007) concluded that the
critics among the researchers have contended that multidimensional construct are
conceptually ambiguous, the dimensions explained are less variance and the relationships
between the dimensions and other construct somehow are confound. However this lack of
agreement does not mean to have no consensus at all in conceptualizing perceived value. The
general concept that can be understood is that perceived value involves the relationship
between customer and the product (Holbrook, 1996) which is strongly related to the utility or
benefits the customer get in return for the money or any other cost they spend (Zeithaml,
1988) including both cognitive and affective aspect Holbrook and Hirschman (1982). As
defined by Zeithaml (1988) that perceived value is “... the consumer‟s overall assessment of
the utility of a product based on perceptions of what is received and what is given”. The
receive components can be referred to the benefits get from using the product while the given
component can be referred to the customer sacrifice in acquiring the product including
monetary and non-monetary aspect. In this regard, Zeithaml (1988) described value in four
different ways: (1) value as low price, (2) value as whatever the consumer wants in a product,
(3) value as the quality get from the price the customer pay, and (4) value as what is get for
what is given.
https://www.researchgate.net/publication/297755624_A_Review_Customer_Perceived_Valu
e_and_its_Dimension

2. 2. Perceived Value

Customer perceived value is defined as “the consumer’s overall assessment of the utility of a product
based on perceptions of what is received and what is given” (Zeithaml, 1988). Perceived value has its
root in equity theory, which considers the ratio of the consumer’s outcome/input to that of the service
provider’s outcome/input (Oliver & DeSarbo, 1988). Two essential conceptions are established with
customer perceived value (CPV). First, Customer Perceived value is a result from the consumers’ pre-
purchase perception (expectation), evaluation during the transaction (expectation versus received),
and post-purchase (after-use) assessment (expectation versus received). Second, Customer Perceived
Value involves a divergence between the benefits received and sacrifices given. The benefits include
customers’ desired value, e.g., quality (Monroe, 1990). Sacrifices, on the other hand, include
monetary (price) and non-monetary (time, effort) considerations (Cronin, et al., 2000; Dodds,
Monroe, & Grewal, 1991; Monroe, 1990). For a firm to maximize customers’ perceived value, it must
either increase the customers’ perceived value, e.g., quality, and/or decrease their sacrifice, e.g., price
paid, time and effort to purchase. Perceived value is critical to the success of buyer-seller relationships
(Lemon, Rust, & Zeithaml, 2001), e.g., customer loyalty, and consists of “the consumer’s overall
assessment of the utility of a product based on perceptions of what is received and what is given”
(Zeithaml, 1988), or the benefits received and the sacrifices made (given). 2. 2. 1. Perceived Value
and Customer Satisfaction Customer satisfaction, in turn, is hypothesized to be influenced by
perceived value. Perceived value, as it has been defined herein, is the ratio of benefits received from
providers relative to the costs sacrificed by customers. In essence, it is a variable that reflects the net
utility derived from a provider. Customer satisfaction, meanwhile, is defined as an overall positive or
negative feeling about the net value of services received from a supplier (Woodruff, 1997).Woodruff
(1997) argues that perceived value represents customer cognition of the nature of relational exchanges
with their suppliers, and satisfaction reflects customers’ overall feeling derived from the perceived
value.

https://www.scipress.com/ILSHS.20.66.pdf

3.3 Perceived Value

For the related construct of perceived value, most studies in the literature focus on measuring the
product recognized value from a consumer dimension. Dodds and Monroe (1985) identified the
relationship models of price, perceived quality, and perceived value and mentioned that perceived
value is an important factor in the consumer purchasing decision process. Parasuraman and Grewal
(2000) indicated that perceived value is an important index for those customers in a status to
repurchase. The perceived value is explored to imply an interaction between a consumer and a
product (Raquel & Ángeles, 2007). Sweeny and Soutar (2001) induced the construct of perceived
value, which includes the four dimensions of perceived quality, emotional value, social value, and
price to figure out the PERVAL scale. Petrick (2002) proposed that perceived value of service
comprises five dimensions: quality, emotional response, monetary price, behavioral price and
reputation. Perceived quality is simply the customer’s overall assessment of the standard process of
receiving customer services (Hellier et al., 2003). During the process of consuming a product or
service, how to satisfy the consumer’s perceived value and further to garner a good impression on the
corporation is a very important issue for enterprises (Kuo et al., 2009). Wang et al. (2015) estimated
the perceived value for the transit time of containers by a shipping line’s published schedule, which is
the optimal decision to minimize the sum of fuel costs and time-associated costs. From the literature
explored above, this study is based on the research of Sweeny and Soutar (2001) to measure perceived
value, which includes the attributes of perceived quality, emotional value, social value, and price.
Please see question items 22-27 in Appendix 1.

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Customer perceived value

Zeithaml [6] defines CPV as "the consumer's overall assessment of the utility of a product
based on perceptions of what is received and what is given" (p. 14). CPV is a result from the
consumers' purchase perception (expectation), evaluation during the transaction (expectation
vs. received), and post-purchase (after-use) assessment (expectation vs. received).

Moreover, customer perceived value involves a discrepancy between the received benefits
and sacrifices. McDougall and Levesque [10] define perceived value as "the results or
benefits customers receive in relation to total costs which include the price paid plus other
costs associated with the purchase" (p. 3). The benefits include customers' desired value. The
sacrifices include monetary and non-monetary (time, alternative products or alternative
brands and self-experiences) sacrifices [11].

Zeithamnl (1988) defines customer perceived value as “the consumer’s overall assessment of
the utility of a product or service based on perceptions of what is received and what is given”.
Firstly, customer perceived value arises from the pre-purchase perception, evaluation during
transaction process and post-purchase assessment. Secondly, it differentiates the benefits
customers receive such as quality and sacrifices such as monetary and non-monetary value
(Woodruff, 1997).

Customer Perceived Value (CPV) has been defined as “the consumer’s overall assessment of the
utility of a product or service based on perceptions of what is received and what is given” (Zeithaml,
1988). This definition is one of the earliest and the most widely cited definition of the concept. This
means that CPV connotes the ‘trade-off’ customers make between the perceived benefits and
perceived sacrifice (Dev & Schultz, 2005; Monroe, 2003). Academy of Strategic Management Journal
Volume 17, Issue 2, 2018 3 1939-6104-17-2-191 Holbrook (1999) defined it as “the consumer’s
relative preference for an object or experience and the personal perception of advantage arising out of
a customer’s association with an organization’s offering”. Woodruff (1997), attempting to merge the
definitions above, described customer perceived value as when “consumers think about products or
services as bundles of specific attributes and attribute performances”. There are two essential
conceptions established within the concept of Customer Perceived Value (CPV). Firstly, customer
perceived value results from the pre-purchase perception of the customer (that is, a consumers’
expectation), customer’s evaluation of the transaction process (customer’s expectation versus actual
experience) and the post-purchase assessment of the service (customer’s expectation versus
experience). Secondly, customer perceived value involves differentiating between the benefits (such
as quality) customers receive and the perceived sacrifice both monetary and non-monetary (such as,
price, time and effort) they had to make. (Dodds, Monroe & Grewal, 1991; Monroe, 2003) however
observed that, “Buyers perceptions of value represent a trade-off between the qualities or benefits they
perceive in the product or service relative to the sacrifice they perceived by paying the price”.
Therefore, the maximization of CPV comes from the organization increasing its quality of service or
reducing the sacrifices customers make by minimizing the time and effort spent in getting the service,
reduction in price paid for the service (Adeola, 2016).

http://eprints.covenantuniversity.edu.ng/11702/1/Role-of-brand-culture-in-influencing-the-
perceived-value-1939-6104-17-2-191.pdf

perceived value definition-here is good

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Many definitions

https://www.abacademies.org/articles/Consumer-customer-and-perceived-value-1939-6104-
17-4-248.pdf

http://www.asianonlinejournals.com/index.php/AJSSMS/article/view/650/html

https://www.emeraldinsight.com/doi/abs/10.1108/APJML-01-2015-
0001?fullSc=1&journalCode=apjml
Jozee Lapierre Model

https://www.coursehero.com/file/pks6jr/Below-is-the-description-of-13-Value-Driver-model-
by-Jozee-Lapierre-2000-1/

http://epub.lib.aalto.fi/en/ethesis/pdf/13021/hse_ethesis_13021.pdf

Customer Perceived Value Aviation Industry

https://www.emeraldinsight.com/doi/abs/10.1108/17506181211265086

http://www.hrpub.org/download/20140525/UJM2-12102251.pdf

https://www.scipress.com/ILSHS.20.66.pdf

http://eprints.ums.edu.my/8962/1/cp0000000133.pdf

http://eprints.utar.edu.my/1349/1/FYP-_Behavioural_Intentions.pdf

https://core.ac.uk/download/pdf/35470242.pdf

http://www.ajbasweb.com/old/ajbas/2013/September/275-281.pdf