Explaining Market Heterogeneity in Terms of Value Perceptions

David Martín Ruiz, Carmen Barroso Castro and Enrique Martín Armario

The Service Industries Journal, 2007, vol. 27, issue 8, 1087-1110

Abstract: In the past decade, companies and academics have become aware of the great benefits of creating value for customers. However, little empirical research has yet been conducted in the area of services with respect to how customers may differ in their perceptions of value and what variables can explain such differences. This article provides an insight into how three relationship-based contingencies are likely to explain market heterogeneity in customers' perceptions of value. In particular, we explore how special treatment of the customer by the service provider, the level of customer involvement with the service, and the customer's accumulated experience with a particular company may act as predictors of market heterogeneity in the customer's perceptions of value within a service setting. Results offer evidence for the important role of relationships and experience in a service context mainly characterised by standard encounters, and provide interesting managerial insights to tailor strategies that effectively respond to market heterogeneity.

Date: 2007
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Citations: View citations in EconPapers (6)

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DOI: 10.1080/02642060701673760

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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