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Role of Cues in Buyers' Evaluations of Service Innovations

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Date Issued:
1996
Summary:
This dissertation integrates knowledge from consumer behavior, diffusion research, strategy and MIS to investigate the effects of information cues such as price, brand equity, and technology on buyers' service evaluations and behavioral intentions. Specifically, the effects of these information cues on buyers' perceptions of service quality, value and purchase intentions are examined. In addition, this study examines the role of two intervening variables, namely, sacrifice (monetary costs) and ease of use (non-monetary costs) in buyers' service evaluations. Two interactive services, a home banking service (Citibank & Ameritech) and a home shopping service (Time Warner) were described in a concept test format to subjects in a 4 x 2 x 2 between-subjects factorial design experiment. The sample for the home banking service (281) was composed of undergraduate students drawn from the university while the sample for the home shopping service (409), was composed of individuals living in the South Florida area. The experimental treatments, manipulation checks, dependent and intervening variables were measured using multiple-item seven point Likert-type scales. The data was analyzed using econometric modeling techniques. In both experiments, service quality perceptions were found to be significantly influenced by technology and brand equity perceptions. Brand equity was the main determinant of service quality in both experiments. Service value perceptions were driven by direct effects from service quality, sacrifice and ease of use and indirectly driven by technology and price perceptions. The role of brand equity in value perceptions is ambiguous. Sacrifice was related positively to price perceptions in both studies. Purchase intentions were explained only by value perceptions in both studies. The results suggest that service quality and service value are very different. The value function is more complex than service quality. Service organizations that attempt to create customer value by maximizing service quality ratings at the lowest price need to emphasize other value based determinants such as technology and ease of use. The model suggests a crossfunctional approach should be employed for service design and development in order to maximize service quality and customer value. In addition, this study recommends a substantive pre-launch service concept development and delivery effort by service organizations before introducing new services.
Title: The Role of Cues in Buyers' Evaluations of Service Innovations.
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Name(s): Ramesan, Jayendra
Florida Atlantic University, Degree Grantor
Georgoff, David M., Thesis Advisor
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Issuance: monographic
Date Issued: 1996
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 203 p.
Language(s): English
Summary: This dissertation integrates knowledge from consumer behavior, diffusion research, strategy and MIS to investigate the effects of information cues such as price, brand equity, and technology on buyers' service evaluations and behavioral intentions. Specifically, the effects of these information cues on buyers' perceptions of service quality, value and purchase intentions are examined. In addition, this study examines the role of two intervening variables, namely, sacrifice (monetary costs) and ease of use (non-monetary costs) in buyers' service evaluations. Two interactive services, a home banking service (Citibank & Ameritech) and a home shopping service (Time Warner) were described in a concept test format to subjects in a 4 x 2 x 2 between-subjects factorial design experiment. The sample for the home banking service (281) was composed of undergraduate students drawn from the university while the sample for the home shopping service (409), was composed of individuals living in the South Florida area. The experimental treatments, manipulation checks, dependent and intervening variables were measured using multiple-item seven point Likert-type scales. The data was analyzed using econometric modeling techniques. In both experiments, service quality perceptions were found to be significantly influenced by technology and brand equity perceptions. Brand equity was the main determinant of service quality in both experiments. Service value perceptions were driven by direct effects from service quality, sacrifice and ease of use and indirectly driven by technology and price perceptions. The role of brand equity in value perceptions is ambiguous. Sacrifice was related positively to price perceptions in both studies. Purchase intentions were explained only by value perceptions in both studies. The results suggest that service quality and service value are very different. The value function is more complex than service quality. Service organizations that attempt to create customer value by maximizing service quality ratings at the lowest price need to emphasize other value based determinants such as technology and ease of use. The model suggests a crossfunctional approach should be employed for service design and development in order to maximize service quality and customer value. In addition, this study recommends a substantive pre-launch service concept development and delivery effort by service organizations before introducing new services.
Identifier: 12452 (digitool), FADT12452 (IID), fau:9346 (fedora)
Note(s): College of Business
Thesis (Ph.D.)--Florida Atlantic University, 1996.
Subject(s): Human Information Processing--Research
Consumer Satisfaction--Evaluation
Marketing--Management
Quality of Products--Evaluation
Technological innovations
Customer services--Quality control
Held by: Florida Atlantic University Libraries
Persistent Link to This Record: http://purl.flvc.org/fcla/dt/12452
Sublocation: Digital Library
Use and Reproduction: Copyright © is held by the author with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Use and Reproduction: http://rightsstatements.org/vocab/InC/1.0/
Host Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.