The Roles of Price, Performance, andExpectations in Determining

Satisfaction in Service Exchanges

46 / Journal of Marketing, October 1998Vol. 62 (October 1998), 46-61

AuthorsGlenn B. Voss :- (Ph.D., Texas A&M University) is the Marilyn and Leo Corrigan Endowed Professor of Marketing in the Cox School of Business at Southern Methodist University.

A. Parasuraman :- James W. McLamore Chair in Marketing, Professor, and Department Chair, Marketing

Dhruv Grewal :- (Ph.D. Virginia Tech) is the Toyota Chair in Commerce and Electronic Business and a Professor of Marketing at Babson College

Construct :- price, performance, and expectations play in determining satisfactionin a discrete service exchange.

Independent VariablesPerformance expectations perceived performance

Moderating variablesPrice - Performance Consistency on the Satisfaction

Dependent Variablespre- and post purchase

Theoretical Framework

Abstract

The authors examine the roles that price, performance, and expectations play in determining satisfaction in a discrete service exchange. The authors maintain that the price fluctuations common to the many service industries that implement demand-oriented pricing, combined with the inherent heterogeneity of service performance, likely result in price-performance combinations that vary widely. Furthermore, the authors propose that the level of price-performance consistency in a service exchange moderates the relationship between performance expectations and subsequent performance and satisfaction judgments. When price and performance are consistent, expectations have an assimilation effect on performance and satisfaction judgments; when price and performance are inconsistent, expectations have no effect on performance and satisfaction judgments

Objectives of StudyIn this study, Author undertake such an investigation by developing a model that incorporates both pre- and post purchase evaluations and testing it with data from a simulated service experiment. A unique feature of our study is the use of multimedia technology to simulate a service exchange

Research MethodologyResearch Design Purpose of study simulated service experiment

TYPE OF INVESTIGATIONCausal

STUDY SETTING Contrived

Scaling

Likert Scale with 7 point scale (Strongly Agree to Strongly Disagree) multiple-item scales for each of the five constructs

Hypothesis DevelopmentH1a :- Performance Expectations – Post purchase performance perception

H1b :- Performance Expectations - Satisfaction

H2 :- Performance Perceptions - Satisfaction

H3 :- Post Purchase price perceptions : Satisfaction

H4a :- Pre purchase Price Perceptions :- Post purchase price perceptions

H4b :- Pre purchase Price Perceptions :- Satisfaction

Data Analysis

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