Abstract

A high level of customer perceived value is the key to customer loyalty and to the profitability of customers and companies. It is not enough to meet the customer's needs in order to win customer loyalty. Instead the aim for companies should be to try to delight customers. Customers are delighted when they feel that the product or service not only fulfils their needs and expectations, but also gives them unexpected additional value.

Value has been studied widely and there are several different models and theories to describe customer perceived value. In the main, they tend to be too general or insufficient or they do not provide a useful guide for management practices. Therefore the aim of this thesis is to generate a theory for consumer perceived value which could be useful for managements trying to develop superior value so as to improve their customer loyalty.

Pre-purchase consumer value was examined applying Grounded Theory methodology and by synthesizing the existing research results. The resulting theory from this synthesis consists of three main stages namely, gaining, sacrifice and purchase factors. The gaining stage has three sub elements: substance, reputation and interaction. All these sub-elements have the same four subcategories: emotional, social, functional and economical elements.

What is novel about this research is its treatment of customer perceived value firstly, from the perspectives of the companies – based on three functionally different factors: substance, reputation and interaction – and secondly from the perspective of the customers based on the identified subjective outcomes (i.e. emotional, social, functional and economic factors). Based on this approach companies can develop products based on a better understanding of consumer perceived value.