Literature Reviews

The specific objectives of this paper are twofold: 1 To add to the debate regarding conceptualisations and

operationalisations of value within a professional service

domain. 2 To contribute to the relatively sparse literature dealing

with the functional relationship between value,

satisfaction and intention to re-purchase professional

services.

Review of literature

Current consensus within the marketing literature is that

value is something that is perceived by the consumers/

customers (Zeithaml, 1988; Woodruff and Gardial, 1996)

rather than objectively determined by the seller (Day and

Crask, 2000) and that value includes benefits and sacrifices,

or according to Zeithaml (1988) perceptions of what is

received and what is given. Furthermore, literature evidences

convergence (both conceptual and empirical) in terms of

value being a multifaceted and complex construct (Sheth et al., 1991; LeBlanc and Nguyen, 1999; Lapierre, 2000) that

should be considered to be a distinct concept to quality

(Cronin et al., 1997; Teas and Agarwal, 2000; Agarwal and Teas, 2001) and satisfaction (McDougall and Levesque,

2000; Eggert and Ulaga, 2002). Furthermore, its

idiosyncratic behaviour is demonstrated by the fact that

value perceptions of the same offering have been found to: . vary across different situations (Zeithaml, 1988;

Grönroos, 1997); . vary across time and experience (Eggert and Ulaga, 2002;

Flint et al., 2002); . vary depending on the type of offering under

consideration (Brady and Robertson, 1999); . are relative to existing competition (Eggert and Ulaga,

2002); and . depend on customer characteristics (Bolton and Drew,

1991; Brady and Robertson, 1999).

Looking at structural relationships between value and other

constructs, quality has been found to be the most often

researched antecedent of value (see among others Cronin

et al., 1997, 2000; Agarwal and Teas, 2001; Ulaga and Chacour, 2001) followed by sacrifice expressed as price, time,

effort etc. (Sweeney et al., 1999; Agarwal and Teas, 2001). Other less frequently examined determinants of value are

relationship forming constructs such as trust and

commitment (Sirdeshmukh et al., 2002; Walter and Ritter, 2003), risk (Sweeney et al., 1999; Agarwal and Teas, 2001), and image/reputation (Teas and Agarwal, 2000; Agarwal and

Teas, 2001). In terms of consequences, re-purchase intention

(Cronin et al., 1997; Brady and Robertson, 1999; Sweeney et al., 1999) and satisfaction (McDougall and Levesque, 2000; Eggert and Ulaga, 2002; Lam et al., 2004) dominate current research. Feedback/word-of-mouth (LeBlanc and

Nguyen, 2001; Lam et al., 2004) has also received attention. Focusing on the literature specific to the business-to-

business domain the related material appears to be in line

with the above general debate. The following definition

proposed by Anderson et al. (1993, p. 5) reflects the convergence of opinions with general debate:

We define value in business markets as the perceived worth in monetary units of the set of economic, technical, service and social benefits received by a customer firm in exchange for the price paid for a product offering, taking into consideration the available alternative suppliers’ offerings and prices.

Here, value’s get-and-give elements are acknowledged as well

as its perceptual and comparative nature. However, unlike consumer research that is dominated by issues related to the

way that an organisation creates value for consumers the business-to-business literature emphasises value creation as a

networking or relationship building process (see for example Ravald and Grönroos, 1996; Flint et al., 1997, 2002; Möller and Törrönen, 2003; Ulaga and Eggert, 2005). Since the

domain of developing business relationships is outside the purpose of this paper we do not review the related evidence,

focusing instead on research specific to services in the business-to-business domain.

Our review has identified only eight papers that dealt (directly or indirectly) with value in professional services, with the debate presented by Mittal (1999) clearly reflecting the

general views, while the reported empirical results are broadly in line with the evidence presented above. More specifically,

all three of the empirical studies that tested the relationship between quality and value have provided support for this

proposition (Patterson and Spreng, 1997; Lapierre et al., 1999; Kumar and Grisaffe, 2004). The value to satisfaction relationship has been supported by four investigations

(Patterson and Spreng, 1997; Lapierre et al., 1999; Eggert and Ulaga, 2002; Lam et al., 2004) with one study providing opposing results (Caruana et al., 2000). As for the direct and moderated (by satisfaction) effects of value on intention, the

studies by Patterson and Spreng (1997) (measured as repurchase), Lapierre et al. (1999) (measured as a multi- item scale of repurchase and recommendation) and Eggert

and Ulaga (2002) (intention partitioned into repurchase, seek alternatives and word-of-mouth) support the proposition that

satisfaction acts as a complete mediator. The same conclusion is reached by Lam et al. (2004) for intention to recommend while these authors indicate that satisfaction partially moderates the value to repeat patronage relationship. Finally, although the study by Kumar and Grisaffe (2004)

also supports the direct effect of value on intention (measured as an index of repurchase and recommendation) their model

does not include satisfaction thus direct comparisons with the other studies is not possible.

Despite this convergence (albeit based on relatively limited number of studies), there are some concerns regarding the stability of the presented evidence, mainly focussed on what we

consider to be incomplete conceptualisation of the value construct. From earlier debate value is considered to be a

multi-dimensional construct, a view supported in the business- to-business domain by Lapierre (2000). However, none of the

professional services papers have adopted such a treatment with Patterson and Spreng (1997), Lapierre et al. (1999), Caruana et al. (2000), Eggert and Ulaga (2002) and Kumar and Grisaffe (2004) employing unidimensional measures/scales of between one and three items. Given value’s complexity, we

consider that, notwithstanding the recent contribution to the general debate on measures by Rossiter (2002), a multi-item

multi-dimensional treatment is required. We also raise concern regarding the treatment of some of the constructs that are proposed to determine value. For example, Lapierre et al. (1999) and Kumar and Grisaffe (2004) model sacrifice as an antecedent of value even thought there is almost total

consensus that sacrifice/give is part of the overall evaluation of value. The same can be said, for example, of the

relationships and global constructs that Patterson and Spreng (1997) have modelled as determinants of value, which should

Relationship between value, satisfaction and intention in business services

Graham Whittaker, Lesley Ledden and Stavros P. Kalafatis

Journal of Services Marketing

Volume 21 · Number 5 · 2007 · 345 – 357

346Tyler, K., Patton, M., Mongiello, M., & Meyer, D. (Eds.). (2007). Business to business services - multiple markets and multi-disciplinary perspectives for the twenty-first century : Multiple markets and multi-disciplinary perspectives for the twenty-first century. ProQuest Ebook Central <a onclick=window.open('http://ebookcentral.proquest.com','_blank') href='http://ebookcentral.proquest.com' target='_blank' style='cursor: pointer;'>http://ebookcentral.proquest.com</a> Created from harrisburg-ebooks on 2020-11-24 13:01:41.

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have been treated as parts or dimensions of value. Finally, the

nomological treatment of value is also questioned, with a

number of studies (e.g. Caruana et al., 2000; Eggert and Ulaga,

2002; Lam et al., 2004) treating value as the starting point of their investigation, thus omitting to include any antecedents of

value.

Research framework and related hypotheses

To address the above identified shortcomings we have

developed the theoretically grounded model presented in

Figure 1. Given the earlier debate, our starting position is that value

is a higher order construct. Although a number of value

typologies have been proposed (see Sheth et al., 1991;

Holbrook, 1994; Lai, 1995; Lapierre, 2000; Lages and

Fernandes, 2004; Ulaga and Eggert, 2005) we consider that

only those by Sheth et al. (1991) and Lapierre (2000) offer a potential basis for adoption. The former was selected on the

strength of its cross sector stability (over 200 applications),

while the latter was rejected because it: . fails to account for the nature of some measures (e.g.

sacrifice should be treated as formative rather than

reflective measure); . the benefit dimension appears to include what the authors

term drivers that are part of the service quality domain

(e.g. responsiveness, reliability etc.); and . the scale lacks theoretical grounding.

Briefly, Sheth et al. (1991), following an extensive review of studies spanning disciplines such as economics, sociology,

psychology and consumer behaviour, proposed what they

termed a theory of five consumption values (functional,

emotional, social, epistemic and conditional values) that affect

choice behaviour. Although empirical evidence supports this

conceptualisation (see for example, LeBlanc and Nguyen, 1999; Sweeney and Soutar, 2001) there are some concerns regarding the behaviour of the conditional value dimension.

More specifically, Sheth et al. (1991) state that conditional value is derived from temporary functional or social value and consequently can be regarded as an exclusive consideration

(i.e. a special case of the other four dimensions; Sweeney and Soutar, 2001) and thus it has not been included in our study. On the other hand, to these values we add image (LeBlanc and Nguyen, 1999; Lapierre, 2000) and price/quality

(LeBlanc and Nguyen, 1999): . Functional value is related to the perceived performance

or utility of the product or service, i.e. an offering’s ability to fulfil the function that it has been created to provide, as well as the benefits associated with owning it. This

dimension is particularly associated with extrinsic attributes.

. Epistemic value refers to benefits derived through an

offering’s ability to arouse curiosity, provide novelty or satisfy a desire for knowledge. The inclusion of this dimension is based on the fact that many professional

services (e.g. consultancy, training, etc.) are specifically designed to improve the skill and knowledge base of the client organisation.

. Emotional value accounts for benefits obtained from an offering’s ability to arouse feelings and/or affective states.

. Social value represents the benefits derived through inter- personal/group interactions and, together with emotional value, this dimension is considered to account for relational benefits.

. Image represents benefits derived from being associated with a business partner that enjoys high market status.

This dimension is closely related to the reputation of the

Figure 1 Research framework/model

Relationship between value, satisfaction and intention in business services

Graham Whittaker, Lesley Ledden and Stavros P. Kalafatis

Journal of Services Marketing

Volume 21 · Number 5 · 2007 · 345 – 357

347Tyler, K., Patton, M., Mongiello, M., & Meyer, D. (Eds.). (2007). Business to business services - multiple markets and multi-disciplinary perspectives for the twenty-first century : Multiple markets and multi-disciplinary perspectives for the twenty-first century. ProQuest Ebook Central <a onclick=window.open('http://ebookcentral.proquest.com','_blank') href='http://ebookcentral.proquest.com' target='_blank' style='cursor: pointer;'>http://ebookcentral.proquest.com</a> Created from harrisburg-ebooks on 2020-11-24 13:01:41.

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service supplier and can be considered to act as a risk-

reducing mechanism. . Price/quality value represents an evaluation of functional

aspects of value relative to the give aspects of the

consumption experience. More specifically its accounts for

customers’ perceptions of the service they receive in

exchange for what they give in terms of payment/sacrifice.

In order to achieve nomological validity, we incorporate

appropriate antecedents and consequences. Earlier debate

illustrates the existence of a body of research that indicates

that satisfaction mediates the value to intention relationship.

However, there are also a number of studies that have

modelled value as a direct determinant of intention.

Consequently, we include both perspectives in the research

model:

H1. There is a positive relationship between value and

satisfaction.

H2. There is a positive relationship between satisfaction

and intention.

H3. There is a positive relationship between value and

intention.

H4. Satisfaction mediates (totally or partially) the value to

intention relationship.

In terms of antecedents, the related body of literature offers

conclusive conceptual and empirical evidence to support the

impact of quality (either product or service) on the formation

of value and satisfaction (Patterson and Spreng, 1997;

Lapierre et al., 1999):

H5a. There is a positive relationship between service quality

and satisfaction.

H5b. There is a positive relationship between service quality

and value.

Given the widely accepted idiosyncratic behaviour of value we

have decided to add the two domain specific (i.e. consultancy

services) antecedents of problem identification and adopted

methodology (see Patterson and Spreng, 1997):

H6a. There is a positive relationship between problem

identification and satisfaction.

H6b. There is a positive relationship between problem

identification and value.

H7a. There is a positive relationship between methodology

and satisfaction.

H7b. There is a positive relationship between methodology and value.

Of the remaining constructs sacrifice, unlike previous research

that has treated it as an antecedent of value this construct is

considered to be a part, and not a determinant, of value (see

price/quality dimension). In addition, although there is some

justification in including risk as an antecedent of value we

consider that: . in the research domain the impact of risk predominantly

manifests itself in the pre-purchase stages while our

examination focuses on post-decision stages of the service

encounter; and . that image accounts for some of the effects of this

construct.

Although the above described research model has been

grounded in extant literature there is logic to the argument

that the behaviour of the six value dimensions is not uniform.

Consequently, a competing model in which the second order

structure of the value construct has been removed, thus resulting in direct pathways between: . the three exogenous constructs and each of the six value

dimensions, and . the value dimensions and satisfaction and intention.

The same logic as in the research model has been employed in order to define the sign of the pathways.

Research methodology

Of the various potential professional services we considered that consultancy to businesses represents an appropriate research domain, i.e. we are concerned with professional service products rather than product related supplementary services. This is viewed as being consistent with other studies in the subject matter (see Patterson and Spreng, 1997; Lapierre, 2000; Lam et al., 2004) and to afford comparisons with the empirical findings of these studies.

Population, sampling and data collection

The target population was defined as “senior marketing staff of UK-based clients of external consulting firms” (i.e. excluded services provided by intra-company units). On the premise that larger companies are more likely to have had experience with consultancy services, UK-based companies listed in the Times 1,000 were targeted. Despite the limitations of such an approach our intention to obtain a broad spectrum of responses and the potentially confounding effects of obtaining multiple clients from specific consultancy firms led us to the adopted approach.

Following consideration of the trade-offs involved when deciding which data collection method to employ, and given the position and working habits of the target population, it was decided that an email survey represented the most effective data collection method. Based on reported response rates (see among others Sheehan and McMillan, 1999; Ranchhod and Zhou, 2001) it was decided to approach the top 300 companies of the sampling frame. After adjusting for undeliverables, and respondents that were found to be either peripherally involved in the whole consultation process or had doubts as to whether their views reflected the collective opinion of their organisation (see approach adopted by Patterson and Spreng, 1997), a total of 78 usable replies were obtained, representing an above average response rate of 29 per cent. The number of received replies adhered to the recommendation that the dataset should comprise at least ten times the number of either the indicators of the most complex formative construct (in this case methodology with four indicators) or the largest number of antecedent constructs leading to an endogenous construct (six value dimensions in the competing model), whichever is greater (Barclay et al., 1995). Finally, the usual tests of non-response bias (i.e. limited follow-ups, comparison of early and late responses etc.; Armstrong and Overton, 1977) were carried out and we were satisfied as to the representativeness of the sample.

Measures and measurement

The research constructs were operationalised using a combination/mixture of the scales already developed by Patterson and Spreng (1997) and LeBlanc and Nguyen (1999). These were contextualised and their content and face validity tested during a two-stage exploratory study using a panel of field experts according to the methods proposed by

Relationship between value, satisfaction and intention in business services

Graham Whittaker, Lesley Ledden and Stavros P. Kalafatis

Journal of Services Marketing

Volume 21 · Number 5 · 2007 · 345 – 357

348Tyler, K., Patton, M., Mongiello, M., & Meyer, D. (Eds.). (2007). Business to business services - multiple markets and multi-disciplinary perspectives for the twenty-first century : Multiple markets and multi-disciplinary perspectives for the twenty-first century. ProQuest Ebook Central <a onclick=window.open('http://ebookcentral.proquest.com','_blank') href='http://ebookcentral.proquest.com' target='_blank' style='cursor: pointer;'>http://ebookcentral.proquest.com</a> Created from harrisburg-ebooks on 2020-11-24 13:01:41.

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