The impact of WOM and evaluative factors Essay Example

The impact of WOM and evaluative factors Essay The objective of this study was to determine the Impact of word-of-mouth information and evaluative factors (perceived value, perceived risk, and satisfaction) on behavioral intention of 253 international tourists, who were traveling in Taiwan during April, 2012. The measurement scales used here were adapted from previous studies found In the literatures, revised to fit this studs propose framework. The survey was conducted in Southern of Taiwan, Attain. SPAS 16. 0 has been used for analyzing data. In particular, exploratory factor analysis (EPA) is used to explore the structure of each constructs. Simple regression and multiple regression have been Implemented, in order to provide an Index of degree of relationship between criterion variables. This study found that there is a positive linkage between word-of- mouth information and perceived value and also have strongly negative effects on the perceived risk. While, word-of-mouth information has no affects on the tourist satisfaction and behavioral intention. In the mean while, perceived value has a positive effect on tourist satisfaction and behavioral Intention. Perceived risk has not only a negative effect on satisfaction but also on behavioral Intention. Furthermore, the tourist satisfaction has a strongly positive effect on behavioral intention. Additionally, the result of this study Illustrated that the mediating factor between behavioral Intention and perceived value Is satisfaction. Introduction 1. 1 The Global tourism and recreation Industry has been growing rapidly since 1996 (Ministry of Economic Affairs (MOA). 008). In 2009, the number of International travelers reached 840 million, and tourism industry output value comprises 9. 4 % of global GAP (Ministry of Economic Affairs (MOA), 2009). In additional, tourism has come one of the major players in International commerce, also represents at the same time one of the mall Income sources for many developing countries (C. F. Chem. Tsar, 2007; Kim Moos, 2005; world Tourism organi zation UNTO, 2010) including Taiwan, The tourism sector also dominates the economic activity of this island. We will write a custom essay sample on The impact of WOM and evaluative factors specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The impact of WOM and evaluative factors specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The impact of WOM and evaluative factors specifically for you FOR ONLY $16.38 $13.9/page Hire Writer This study aims to examine how international tourists word-of-mouth Information, perceived value, perceived risk and satisfaction Impact to their behavioral intention when they travel Taiwan in order to gains the success of destinations development for Taiwan in the future and giving the suggestion to the equines in tourism industry. The First chapter is an introductory chapter of the research, providing background and rational of conducting this study, research objectives, research questions, and research flowchart. Follow by chapter two we will have pro discussion on each construct of the model; word-of-mouth information, perceived value, perceive risk, tourist satisfaction, and behavior intention. Also the comprehensive review of past literatures relevant field of the research, Furthermore In this chapter will provide the hypothesis of this study as well. Chapter three details he research methodology guiding the entire research procedure regarding; proposed research design, questionnaire design and development, the sampling international tourists will be the target population. Applying the convenient sampling technique, a total number of 253 questionnaires delivered. The sample will be taken by international tourists who travel in Attain, Taiwan. Within chapter four presents the major findings of questionnaire survey with the result of the data analysis and the analytical method of this research including; descriptive statistic, reliability test, factor analysis, and regression analysis. Then, subsequently compare the result with previous studies. Chapter five concludes the whole research result, show the contribution based on the findings of the research, provide implication academically and practically, and ultimately furnish suggestion for the further research. Since 1950 up until 2010, the international tourists arrival expanded at an annual rate of 6. 2%, growing from 25 million up to 940 million reported by World Tourism Organization (2010). World Travel and Tourism Council (201 1)gs annual research, published in March 2011, confirmed the recovery in Travel and Tourism in 2010, with he tourism industry direct contribute to GAP increasing by 3. %, to IIS$I . 8 trillion. Therefore, in the recent years, tourism business development has been focused on studies and researches (T. K. Has, Tsar, We, 2009; Krishna, 2010). Over the past decade, Asia countries continue to be the economic powerhouse of the world; it has been growing rapidly and become a large potential market in the tourism industry (International Monetary Fund, 2 010). Moreover, the countries in Asia also have long been among the most popular global tourist destinations (Phantasmagorias, 2008). The main reason why this study take an interest in international tourist is international tourism is a major source of export revenue for many countries worldwide (Change, McAllen, Slotted, 2009) including Taiwan. According to the survey of Tourism Bureau, M. O. T. C. Republic of China (AAA) oversea tourists made a record-high 5. 6 million to visit Taiwan in 2010, which increase 1. 2 million or 26. 7 percent over 2009. Moreover in 2010 inbound visitors about 4 million out of the total amount are from East and South East Asia. The four most important sources for suitors to Taiwan were Mainland China, at about 43 percent?one-third from the special administrative regions of Hong Kong and Macaw?Japan at 19. 6 percent, Malaysia at 5. 1 percent, Singapore at 4. 3 percent and Korea at 3. 9 percent. In 2010, the amount of total annual incomes of international visitors expenditure were up 27. 92% over 2009, which contribute Taiwan annual income to reach IIS$ 8,719 million (Tourism Bureau, 201 AAA). And percentage of inbound visitors that had revisited Taiwan in 2010 is 33 % with the most likely purpose of their next trip would be sightseeing and business (Tourism Bureau, 201 AAA). This study keen on Taiwan tourism owing to Taiwan is the largest island of East Asia in the western Pacific Ocean and located off the southeastern coast of Mainland China (Ministry of Foreign Affairs, 2010). Beside, Taiwan is a multicultural country including the aborigine culture, the original Taiwanese and also because of it has been colonized by Dutch, Spanish, and Japan. Moreover, Taiwan has a beautiful scenery which can offers a wide range of engaging choices include bustling metropolises, breathtaking mountain and coastal scenery, mouth-watering cuisine, diverse traditional Chinese as well as aboriginal arts and traditions, and some of the worlds friendliest people. For nature lovers, the main islands mountains and foothills, with their lush forests, hot springs and relaxation. In recent years, Taiwan has annually received tens of thousands of visits by foreign tourists seeking health care services. Services provided to visitors from Asian countries are currently valued at more than USED 4. 5 billion per year (Ministry of Foreign Affairs, 2011). 1. 2 International Tourist International tourism has developed rapidly on the worldwide scale since the late sass (Akimbo, 2011). It is the source of foreign currency flows into the country and a LOL to maintain work force employed. International tourism increases inputs to the GAP of a country (World Travel and Tourism Organization and International Hotel and Restaurant Association, 1999). It also contributes to the diversification of economy, by creating new sectors; its provide services to the tourism sphere which solved unemployment problem and the other benefits contributed by international tourism include increasing income, savings, investment. (Limp, 1997). Number of Taiwan inbound visitors was increasing dramatically from 3. 8 million in 2008 to 5. 6 million in 2010 (Tourism Bureau, 201 AAA). Additionally, World Economic Forums 2008 Tourism and Travel Competitiveness Report showed, Taiwan Tourism industry contributed 1. Percent of Total Taiwan GAP. Taiwan ranked 43 among 133 countries assessed and ninth in Asia Pacific, behind Australia, Singapore, Hong Kong, New Zealand, Japan, South Korea, Malaysia and Thailand (World Economic Forum, 2009). Figure 1. 1 Number of international tourists visiting Taiwan 1993-2011 (201 LLC) 1. 3 Taiwan Taiwan is a developing country which tourism industry plays in the important role to their economic development, located in East A sia off the coast of Mainland China (Tourism Bureau, 201 LLC). In the first half of the 17th Century, the Dutch established a presence at Napping (modern day Attain). There they conducted missionary activities, trade and the production of various goods. They also recruited many Han settlers from the coast of Mainland China, ushering in the multicultural history of Taiwan. The number of Han Chinese immigrated in Taiwan steadily increased during the short-lived Change regime and King period over the next 200 years, created a primarily Han society in Taiwan. In the late 19th century, the island became a colony of Japan and would remain under Japanese rules for 50 years, during which time it evolved from a traditional society into a modern society. At the end of World War II in 1945, Taiwan was liberated from colonial rules. Since then, the island had experienced an economic miracle and introduced political democracy achievements that have attracted the worlds attention. Today, Taiwan boasts an excellent infrastructure, convenient transportation system, and high-quality communication services (Tourism Bureau, 2011 b). In order to turn Taiwan into a tourist hub for East Asia and a major international tourist destination the tourism bureau, Ministry of Transportation and Communications R. O. C or M. O. T. C. (2011 a) has focused on developing Twains new international image as leisure and tourist destination. In its effort M. O. T. C. Launch global campaign to promote Twains international tourism brand image Taiwan touch your heart in 2000 as appears in Has, et al. (2009) literature. According to the visitor arrival statistic of Tourism bureau, M. O. T. C. Republic of China (Bibb) shows the number of visitors who visited Taiwan since more than 5 million international tourists to visit Taiwan in 2010, the visitors residence visited Taiwan the most is from Mainland China (Tourism Bureau, 20th). And now its following up by the new campaign in 2011 Taiwan heart of Asia with the similar idea that tourism in Taiwan start with the heart (Tourism Bureau, 2011 a). In 2009, Taiwan welcomed close to 4. 0 million international visitors, an increase of 14. 3% over the previous year and an all-time high. It also represented the highest rate of growth in the Asia-Pacific region (Tourism Bureau, 201 Co). In addition, Taiwan tourism promote program Project Vanguard for Excellence in Tourism and International marketing promotions in 2010, contributed to the number of inbound visitors to Taiwan reaching a record 5. Million people, a growth rate of 26. 7% last year. The number of i nbound visitors to Taiwan increased in all markets. In particular, Mainland Chinese tourists have taken the place of Japanese tourists, to become the largest group inbound visitors to Taiwan (Tourism Bureau, 201 AAA). The most well known tourist attractions in Taiwan include the National Palace Museum (Taipei), Night Markets (especially in Taipei), Taipei 101, formerly the worlds tallest building, Sun Moon Lake (central highlands), and Taro National Park (east coast). From 2008 annual survey report found the inbound visitors with sightseeing as their repose mostly visited Night markets, Taipei 101 and the National Palace Museum. The inbound visitors with business and international conferences or exhibitions as their purpose mostly visited Night markets, Taipei 101 and the Jinni Commerce District(Tourism Bureau, 2008). Mainland Chinese tourists have inclined to visit Taiwan more and more, according to the annual survey report (Tourism Bureau, 2008, 2009, 201 AAA) since 2008 until 2010 the number of visitors has been increase continuously. According to tourism bureaus annual survey (2008, 2009)gs result determine that the inbound visitors from Japan and Hong Kong/Macro, heir main reason to visit Taiwan was Food. While the main reason to visit Taiwan of the inbound visitors from Mainland China, Singapore, Korea, Malaysia, USA, Europe, Australia/New Zealand, was Scenery. Moreover, the favorite scenic spot, the first choice of the inbound visitors with sightseeing and business as their purpose, and who were from Japan, Mainland China, Singapore, Korea, Malaysia, the USA and Europe was Taro, Dietitians but Taipei was the major and favorite city county for the inbound visitors (Tourism Bureau, 2008, 2009). 1. 4 Research Objectives The purpose of this study is to empirically test a proposed model to better understand the complex relationships among word-of-mouth information, perceived value, perceived risk, tourist satisfaction, and behavioral intention of the international tourists who travel in Taiwan. The research objectives are four folds: 0 To investigate the effect of word-of-mouth information on perceived value, perceived risk, tourist satisfaction, and behavioral intention. To explore the impact of perceived value on tourist satisfaction and behavioral intention. 0 To investigate the impact of perceived risk on tourist satisfaction and behavioral intention. To investigate the relationship between tourist satisfaction and behavioral intention. 1. 5 Research Questions This research will concise on behavior intentions of international tourist by perceived risk, and tourist satisfaction on behavioral intention to travel in Taiwan. How word-of-mouth information affecting international tourists perceived value, perceived risk, satisfaction and behavioral intention to travel in Taiwan? 0 What is the impact of perceived value on the tourists satisfaction and behavioral intention of international tourist to travel in Taiwan? How the perceived risk influence to of international tourists satisfaction and behavioral intention to travel in Taiwan? What is the linkage between tourists satisfaction and behavioral intention of international tourist to travel in Taiwan? 1. 6 Research Flowchart The research flowchart of this study is presented in the figure below: Figure 1. 2 Research Flowchart CHAPTER 2 Literature Review 2. 1 Introduction This chapter e xplores the existing research in the selected fields; word-of-mouth Information (WOMB), perceived value (PA), perceived risk (PR), satisfaction (SAT) and behavior intention (81) and these linkage of five elements. This research will base on empirical study by quantitative research impact of word-of-mouth information, and evaluative factors on behavior intention of international tourists when they travel in Taiwan. Previous empirical studies from articles in academic, Journals have been investigated and published books have been studied. Furthermore, the hypothesis and framework of this study will be included in this chapter. 2. 2 Tourist Behavior Kettle and Keller (2009) stressed that there is a five stages decision making in every purchase. First stage is needs recognition/purchase motives. Second stage is searching information and acquiring information. Lou (2009) suggested that on this stage there are several sources that customers can obtain information from; Personal sources: family, friends, and neighbors. Commercial sources: advertising; salespeople, retailers, dealers, packaging, point-of-sale displays. Public sources: newspapers, radio, television, consumer organizations; specialist magazines. And experiential sources; handling, examining, using the product. Third stage of decision making is evaluating of alternatives. It involves rating of options and leads to formation of preferences and formation of behavioral intention. Forth stage is actual arches and consumption decision, which involves purchase transaction related decisions (dealer choice, brand choice etc. ) as well as consumption related decisions (frequency of purchase, light versus heavy users etc. ). The last stage is post-purchase behaviors (Murrain Murrain, 2011). According to this five stages decision making we considerate the constructs of this study framework which describe in following section in this chapter. 2. Word-of-Mouth Information (WOMB) On account of interpersonal influence and word-of-mouth information (WOMB) are ranked the most important information source when a consumer is making a arches decision (Litton, Goldsmith, Pan, 2008) so WOMB has been frequently studied in academic interest for many years. It has been referred to as one of the most powerful forces in business (Arrant, 1967; Battle, 1998; Totting Jacob, 20 10). Assume on the conceptual grounds that WOMB passage have an impact on the profits of the firm which was responsible for the creation of the transmitting customers satisfaction level. Arrant (1967)gs study, one of the earliest study about WOMB, he described WOMB as an oral, person-to-person communication between receiver and communicator whom the receiver perceives as noncommercial, regarding a brand, reduces, services or a provider. More recently, Battle (1998) defined WOMB communication as a generally acknowledged which play as a major influence on what people feel (consumer attitudes) and do (behavioral intention). It also appears in other previous literatures (P. Chatterer, 2001; Aches Managed, 2011; R. E. Smith Pogo, 1995; Weinberg Dillon, 1980). As same as Moldavia, et al. 201 1)gs study presented WOMB definition as crucial to product success, as are originality and usefulness. It is therefore interesting to understand whether and how these product dimensions affect WOMB, enabling marketers to manage WOMB to their advantage. Moreover Arrant (1967) stated in his study that nowadays, WOMB is not only limited to be only face-to-face, direct, oral anymore. Th e electronic community in effect generates virtual WOMB which is not face to face, direct, oral and ephemeral as same as some researchers for example; Battle (1998), Litton, et al. (2008), Lie, et al. 2010), Totting and Jacob (2010). The history of electronic WOMB is traceable through archival threads. Interpersonal communications have long been recognized as influential in the tourism industry. Hence, recent research in the tourism area has demonstrated he influence of both positive and negative WOMB upon tourism products in studies across a broad range of nations (Litton, et al. , 2008). In additional Park and Kim (2008)gs study suggest that the electronic WOMB supposed to be informal and format- free because its a consumers freely comment about the experience they had with a product. Beside, Bone (1992) proposed that WOMB occur during product consumption since individuals in this situation are simply sharing thoughts. Furthermore, The study of Anderson (1998) implied that the valence of WOMB can be positive, neutral, or negative. So it can be impacted on the audiences PA, SAT and also Bal. It is a frequently postulated in the literature that WOMB is more powerful than formal advertising that marketing and advertising agencies shove at consumers (Banal Voyeur, 2000; Tucker, 2011). Beside, Paranoid, Charter, and Charter (2006) claims WOMB information is one kind of information sharing. Table 2. Word-of-Mouth Information Definitions Author Definition Richest (1984) A form of interpersonal communication among consumers concerning their personal experiences with a firm or a product. Brown and Reining (1987) A powerful force in shaping consumers attitudes. Bone (1992) Conceptualized herein as a group phenomenon, an exchange of comments, thoughts, and ideas among two o r more individuals in which none of the individuals represent a marketing source. Litton, Goldsmith, and Pan (2008) The communication between consumers about a product, service, or a company in which the sources are considered independent of commercial influence. Goddess and The result of the firms action possible for the firm or that such exogenously-created WOMB would have the same beneficial impact on the products sales as previous research has demonstrated with respect to endogenous WOMB. L, et al. 2010) An action for informally sharing experiences and spreading information among consumers whenever they are satisfied or dissatisfied with specific products. Totting and Jacob (2010) Instrumental in communication is rather new and requires some reformulation of existing concepts. Battle (1998)gs study characterized WOMB to five components; valence WOMB can be either positive or negative. Positive WOMB occurs when good news testimonials and endorsements desired by the company are uttered (These may be based on personal experience, exposure to the third party communication or to mediated communication). Negative WOMB is the mirror image. Focus, the satisfied customer communicating with a prospect and its not only limited to customers. Timing, WOMB can operate as an important source of pre-purchase information. Solicitation, not all WOMB communication originates from customers. Indeed, WOMB may be offered with or without solicitation; it may or may not be sought. And degree of management intervention, WOMB can be spontaneously generated, but nowadays it has increasing number of companies try to intervene the effort in order to stimulate and manage WOMB. Some even consider customer WOMB as the most effective racketing tool and also the one with the lowest cost (Schaefer, 1998) . Lam and Has (2006)gs study found the Chinese people more likely to intend to visit the target destination when other people like friends, family, co-workers or travel agents think it is a positive thing to do (P = 0. 46, p 0. 01). The result of Banal and Voyeur (2000)gs study suggested that when the WOMB receiver and sender have close relationship, WOMB Information will have significant influence on the receivers purchase decision in the processes of WOMB within a service purchase decision context (P = 0. 18, p . 05). Indeed, literature on pre-purchasing stages in the receivers decision-making process indicates that the receiving WOMB impact the receivers awareness, attitudes, product evaluations, intentions, and expectations (Battle, 1998; J. Lee, Park, Han, 2008; Tax, Chickenhearted, Christiansen, 1993). Consumers tend to rely on the other consumers opinion when they make decision about matters so both traditional WOMB and online WOMB are important for driving the actions of consumer 0. Lee, et al. , 2008). Not only WOMB had impact to consumers decision process but the type of reduce also had a significant influence on tendency of the following product recommendations (Seneca Mantel, 2004). Since, WOMB is consumers attitude toward product or service stimulated by communicators satisfaction or dissatisfaction rely on their previous experience (Managed, Miller, Broadway, 1999; Tucker, 2011). Hence WOMB has both positive and negative which Lee, Park, and Han (2008)gs research has investigated the effect of negative online customer reviews on consumer product attitude. The finding shows that the product with the low negative online consumer review proportion had more favorable attitudes than those with gig negative consumer review proportion (F-ratio = 52. 56, p 0. 01). Gao and We (2010)gs study explores the idea of educational hypermedia PA by extending prior research in advertising and information systems. It proposed that the a course The result illustrated that the more information customer received, the more value they tend to perceive (P = 0. 82, p 0. 01). Likewise, Green, Commonness, and Specializes (2006) finding of their study, The results suggested that meow (electronic word-of-mouth information) communication impacts the perceived overall value of the firms offering in a significant manner in customers perception (P = 0. 76, p 0. 05). J and Ghana (2009)gs study established a model that the online WOMB massage impressions and opinion leaders have influence on consumers buying intention on apparel. And they found that the online WOMB is the truest reflection of consumers product evaluation (P = 0. 16, p 0. 05). This discussion leads to the first hypothesis: HI : Word-of-mouth information affects on the perceived value. Banal and Voyeur (2000)gs study investigated the processes of WOMB within a service purchase decision context. Their result indicated that there is a strong positive relationship between information receivers expertise and the degree of WOMB searching information. The more they are knowledgeable or possesses experience, the less risk will be perceived (P = 0. 7, p 0. 05). In additional, the research indicated that the person who tends to perceived more risk is more active to search for the WOMB information. Ha (2002)gs study examined how consumer information (brand, word-of-mouth information, and customized information) processing affects consumers perception of risk prior to purchase. The results show that customized information (T-value = 4. 14, p 0. 01) and WO MB communication (T-value = 3. 63, p 0. 1) influence consumers more than do other types of information from online auctions. Moreover, this research suggested the reason to support their result that customized information and WOMB can effect to consumers PR the most because of both are based on consumer experience and relevant to product purchase. Lutz (1974 ) research about the effects of perceived social and performance risk on consumer information acquisition. This study found that consumers tend to use more sources of information including WOMB information when they faced with increasing degrees of perceived performance risk (F-ratio = 39. 70, p 0. 001). This discussion leads to the second hypothesis: H2O: Word-of-mouth information affects on the perceived risk. WOMB and SAT has been discuss in many exist literatures. Most of the previous researches have been indicated that WOMB is the output when satisfaction has been met (E. W. Anderson, 1998; S. C. Chem., 2011; Uncharacteristic Quo, 2011; Tax, et al. , 1993; Hemingway Baboon, 2007) and it become input of the prospective customer (File, Carmaker, Prince, 1994). According to Tax et al. (1993)gs study emphasis that word of mouth information is not only Just being an outcome; it might be a mediator variable of both distraction and repurchase intention. Verge and Sutherland (2009)gs research aimed to assess the relative impact of different types of media contacts on consumers product evaluations and satisfaction of products and services (a snack, a health drink, a game computer, a movie, and an internet dating service) by source of information (WOMB, and media contact; TV advertising, radio commercials). They conducted 4,992 the survey of 14,000 whom received a link, in which they were asked whether they had used one of the five products in the survey. Their result revealed hat WOMB has greater impact on the customers satisfaction level in all five different products; a snack (P = 0. 1, p 0. 001), a health drink (P = 0. 32, p 0. 001), a game service (P = 0. 22, p 0. 01) rather than other media contacts. While David (2003)gs study argues that there is no significant relationship between dissemination of WOMB and customers satisfaction level and valance of WOMB has only indirect effect on satisfaction level of customers. His study aim ed to examine the impact of WOMB as a mediating variable between perceived fairness, satisfaction and repurchase intention y access the reaction of 319 students from an introductory marketing class at a large Southwestern University. In additionally, Money and Crofts (2003) proposed that national culture is another characteristic that may manifest itself in varying approaches to the searching and purchasing decisions. They conducted survey with 1042 German and Japanese visitors who travel in US. The result revealed that uncertainty avoidance and power distance also has impact on differences among tourists cultures external search behavior. Their research demonstrated risk tolerant cultures (German) seek information from personal sources (F = 36. 1, p 0. 001) more than those who are risk averse Panels). This discussion leads to the third hypothesis: HE: Word-of-mouth information has direct affects on the tourist satisfaction. Banal and Voyeur (2000)gs study found that WOMB has a significant influence on the information receivers purchase decision (P = 0. 41, p 0. 05). In addition Money, Silly, and Grammar (1998)gs research examined how national culture affects referral behavior for industrial services between Japanese companies and American Companies which located in Japan compare to the Japanese companies and American companies which located in America. They found that WOMB has stronger impact on purchasing decision to Japanese companies 0. 70, p 0. 05) rather than American companies (P = 0. 15, p 0. 05) which all companies located in United State. The result indeed Japanese companies purchasing decision (P = 0. 74, p 0. 05) which located in Japan also have been influence by WOMB more than American companies which located in Japan (P = 0. 66, p 0. 05). Indeed to Martin and Leg (201 1)gs research result presented the model which integrates factors influencing listeners usage WOMB (WOMB) and the consequences of WOMAN in listeners purchase decisions. They found that WOMAN is positively related to attitude toward the product (P = 0. 54, p 0. 001) which also has positively related to their purchase intentions ( 0. 57, p 0. 001). In additional, the result of Zamia (201 1)gs study illustrated that negative WOMB can effect to final consumer purchasing behavior rather than positive WOMB (T-value = 7. 247, p 0. 01). Moreover, WOMB received from family, friends, peers, and relatives has greater impact on buying decision rather than other sources for example; company staff, and salesman (T-value = 21. 41). This discussion raises the forth hypothesis: HE: Word-of-mouth has direct affect on the tourists behavioral intention. 2. 4 Perceived Value (PA) Perceived value defined as the consumers overall assessment of the utility of a product based on perceptions both time and place of service delivery are the important dimensions of customer perceived value, and when or where the service is delivered should be determined by consumers rather than by companies (Heinous, 2004). Holbrook (1996) defined value in four characteristics. Firstly, he defined it as an and the product. Secondly, it also defined as reality because it can never be absolute hen it is the result of customers, in difference customers, in a multitude of different situations situation it will bring the different result of making comparisons between alternative possible sources of value which also appears in Smith (1996) literature. Thirdly, these include predisposition, attitude, opinion, directional behavior, valence, judgment, or evaluation. Finally, its relate to their experience due to the act of consumption is not the end, but its a beginning of obtaining the experiences by derived from the product on what is received and what is given and its change all ever the goods purchased which be evident in Estimate (1988)gs study as well. Table 2. 2 Perceived Value Definitions Chatham (1988) The consumers overall assessment of the utility of a product (or service) based on perceptions of what is received and what is given. Monroe (1990) Buyers perceptions of value represent a tradeoff between the quality and benefits they perceive in the product relative to the sacrifice they perceived by paying the price. Bolton and Dew (1991) Richer measure of customers overall evaluation of a service than perceived