How do customers truly perceive the value of your service? This study delves into the complexities of service quality, focusing on perceived value, expectations, shortfalls, and bonuses in the valuation process. This research considers the implications of key relationships in the marketing and delivery of services. The author also presents a model yielding a value vector that summarizes the perceived value of a service and service quality to a customer. The paper characterizes customer perception of the perceived value of a service and quality of service in multivariate space. The perceived value vector summarizes the aggregate effects of variables of influence on perceived value. Relates service delivery to customer expectations. In this context, illuminates important issues related to exante versus ex post expectations. Introduces the concept of expectations‐delivery variance (EDV). Examines the concept of delivery shortfalls as well as delivery excess, with excess leading to bonus fulfillment. The findings assert that shortfalls and bonus effects have asymmetric affects in terms of residual influence on future perceptions of customer expectations of service value. By exploring these factors, the study provides valuable insights for optimizing service delivery and enhancing customer satisfaction.
This paper is aligned with the Managing Service Quality: An International Journal by exploring service quality from the customer's perspective, detailing the role of perceived value and expectations. Relating service delivery to customer expectations, the article introduces the concept of expectations-delivery variance (EDV). Citations throughout the 2000s highlights its pertinence.