Value-in-use and service quality: do customers see a difference?

Purpose The definition of value adopted by the current service perspective on marketing theory is value as value-in-use. Surprisingly, however, little attention has been given to the question of what constitutes value-in-use for customers in service contexts? Therefore, the aim of this study is to provide an empirical account of value-in-use from service customers' point of view. Design/methodology/approach To capture and analyze customers' experiences of value-in-use in the typical service context of retail banking, this study employed a narrative-based critical incident technique (CIT) and a graphical tool called the value chart. Findings The study identified seven empirical dimensions of positive and negative value-in-use: solution, attitude, convenience, expertise, speed of service, flexibility and monetary costs. Interestingly, these value-in-use dimensions overlap considerably with previously identified dimensions of service quality. Research limitations/implications The concepts of service quality and value-in-use in service contexts seem to represent the same empirical phenomenon despite their different theoretical traditions. Measuring customer-perceived service quality might therefore be a good proxy for assessing value-in-use in service contexts. Practical implications As the findings indicate that service quality is the way in which service customers experience value-in-use, service managers are recommended to focus on continuous quality management to facilitate the creation of value-in-use. Originality/value This study is the first to explicitly raise the notion that in the minds of service customers, value defined as value-in-use and service quality may represent the same empirical phenomenon.