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A number of studies investigated how value perceptions are formed and how these perceptions influence product choice. For example, a study by Sweeney et al. (1999) showed the role perceived risk has in the quality-value relationship for durable goods. They concluded that consumers do not only consider the immediate benefits and sacrifices, but also contemplate about the longer-term implications of the product's ownership, including performance and financial risk. Perceived risk is considered a sacrifice, as it involves psychological costs. The results showed that product quality, relative price (i.e. relative to products with similar features), risk and functional and technical service quality defined perceived value. Perceived risk played an important role in the quality-value relationship; it was found to be a significant mediator of this relationship. Product and service quality reduced perceptions of risk, which, in turn, affected perceived product value. Additionally, the mediating role of perceived value was questioned; thus, whether it was necessary to include perceived value as a mediator, or whether it was possible to directly link service quality, merchandise quality, risk and relative price with willingness-to-buy. The results indicated that perceived value was found to be significant mediator and should be included.

Teas and Agarwal (2000) also researched the antecedents of perceived product value. Their model included perceived quality and perceived sacrifice that indirectly influenced perceived value through perceptions of performance and financial risk. Perceived quality was negatively related to performance risk, whereas price was positively associated with financial sacrifice, as well as perceived quality (dual effect of price). The results demonstrate that perceived quality and perceive sacrifice have an indirect effect on perceived product value through performance risk and financial risk.

Table 2 Study & research of value perception



Merchan-dise quality


Time /

Pshygo-logical cost


Agarwal and Teas (2001)   Product quality Price   Performance risk financial risk  

Baker et al. (2002) Interpersonal service quality Merchandise quality Monetary price Time/effort costs Psychic costs  

Bolton and Drew (1991) Service quality   Sacrifice Sacrifice Sacrifice  

Chang and Wildt (1994) Quality Quality Price      

Chen and Dubinsky(2003) Customer service Product quality Product price Valence of experience Perceived risk Valence of experience

Cronin et al.(2000) Service quality   Sacrifice Sacrifice Sacrifice  

Dodds,Monroe and Grewal(1991)   Product quality Sacrifice Sacrifice Sacrifice  

Kerin, Jain and Howard(1992)   Merchandise quality Price Shopping experience Shopping experience Shopping experience

Sirohi, McLaughlin and Wittink(1998) Service quality Merchandise quality Relative price and promotions      

Sweeney, Soutar and Johnson (1999) Technical and functional service quality Product quality Relative price   Performance / financial risk  

Teas and Agarwal (2000) Perceived quality   Sacrifice Sacrifice Sacrifice  

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