Awaad, Sa ah Ahmed; Ko am, Wael; Ayad, Nihal
A icle
Examining he impac o p ice sensi i i y on cus ome
li e ime alue: empi ical analysis
Cogen Business & Managemen
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Examining he impac o p ice sensi i i y on
cus ome li e ime alue: empi ical analysis
Sa ah Ahmed Awaad, Wael Ko am & Nihal Ayad
To ci e his a icle: Sa ah Ahmed Awaad, Wael Ko am & Nihal Ayad (2024) Examining he
impac o p ice sensi i i y on cus ome li e ime alue: empi ical analysis, Cogen Business &
Managemen , 11:1, 2366441, DOI: 10.1080/23311975.2024.2366441
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Cogen Business & ManageMen
2024, VoL. 11, no. 1, 2366441
Examining he impac o p ice sensi i i y on cus ome li e ime
alue: empi ical analysis
sa ah ahmed awaada, Wael ko amb and nihal ayada
aDepa men o Business adminis a ion, Facul y o Business, a ab academy o science, echnology & Ma i ime anspo in
Cai o, Cai o, egyp ; bDepa men o Business adminis a ion, Facul y o Business, B i ish uni e si y, al sho ouk Ci y, egyp
ABSTRACT
his s udy examines how p ice sensi i i y pa ame e s a ec cus ome li e ime alue in
he luxu y business. Quali y, posi ion, in o ma ion, ime, and cus ome li e ime we e
examined as p ice sensi i i y ac o s ollowed by a concep ual model and esea ch
hypo heses we e p oduced based on p e ious s udies. seconda y analysis and in-dep h
in e iews wi h indus y specialis s and cus ome s. a ep esen a i e sample o 232 a
class consume s was included in a su ey ha was gi en o a-class cus ome s in egyp .
a new le el o p ice sensi i i y known as ‘quali y posi ioning alue’ was ound h ough
he use o ac o analysis. Mul iple disc iminan analysis was pe o med o alida e he
hypo heses and c onbach’s alpha was u ilised o assess he eliabili y o he da a. his
analysis sheds ligh on he e ec o p ice sensi i i y on cus ome li e ime alue in he
luxu y indus y.
1. In oduc ion
his s udy in es iga es how cus ome s’ sensi i i y o p icing impac s cus ome li e ime alue (clV) in he
luxu y goods indus y. h ough an ex ensi e li e a u e e iew, ou key dimensions o p ice sensi i i y
we e iden i ied ha will be examined: Quali y Value, ime Value, Posi ion Value, and in o ma ion Value.
P e ious esea ch shows ha p ice plays a majo ole in how cus ome s e alua e p oduc op ions and make
pu chasing choices (hsu e al., 2017). speci ically, p ice hea ily in luences cus ome s’ judgmen s abou a b and’s
p icing ela i e o compe i o s and decisions be ween b ands and p oduc ypes (nied ich e al., 2009).
P ice is an in eg al pa o a company’s ma ke ing s a egy, ep esen ing he asc ibed alue o a p od-
uc and amoun cha ged. academics de ine p ice as he exchange alue o goods and se ices. app op ia e
p icing is c ucial o companies o es ablish ma ke sha e and p o i abili y. While p icing decisions can be
made quickly, poo p icing can se e ely hinde a company’s success. Fi ms should ecognise he oppo -
uni y o c ea e alue by aligning hei e enue gene a ion app oaches (sjödin e al., 2020).
Mo eo e , cus ome s ypically compa e he objec i e p ice wi h hei in e nal e e ence p ice, which is
he o e all p ice ange hey associa e wi h he p oduc ca ego y. a e pu chasing a p oduc o se ice,
cus ome s may no emembe he ac ual p ice bu will encode i in a way ha is meaning ul o hem,
such as ‘cheap’ o ‘expensi e’. he objec i e p ice only becomes signi ican o cus ome s when hey in e -
p e i subjec i ely (chua e al., 2015).
© 2024 he au ho (s). Published by in o ma uK Limi ed, ading as aylo & F ancis g oup
CONTACT sa ah ahmed awaad sa [email protected] Depa men o Business adminis a ion, Facul y o Business, a ab
academy o science, echnology & Ma i ime anspo in Cai o, Cai o, egyp .
h ps://doi.o g/10.1080/23311975.2024.2366441
his is an open access a icle dis ibu ed unde he e ms o he C ea i e Commons a ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. he e ms on which his a icle has been
published allow he pos ing o he accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
ARTICLE HISTORY
ecei ed 26 Oc obe
2023
e ised 6 Ma ch 2024
accep ed 29 May 2024
KEYWORDS
P ice sensi i i y; quali y
alue; posi ion alue;
ime alue; in o ma ion
alue; cus ome li e ime
alue (clV)
REVIEWING EDITOR
kaou he kooli,
Bou nemou h Uni e si y,
Uni ed kingdom o g ea
B i ain and no he n
i eland
SUBJECTS
Ma ke ing; Ma ke ing
Managemen ; consume
Beha iou
2 s. a. aWaaD e al.
he e o e, his esea ch cen es on he luxu y sec o , a no ion cha ac e ised by subjec i i y ha has
e ol ed h oughou his o y. in ancien g eece, i ca ied un a ou able implica ions, whe eas in ome, i
encompassed bo h posi i e and nega i e conno a ions. i s oo s ace back o he la in e m ‘luxus’,
deno ing ‘la ishness’ o ‘weal h’, and subsequen ly acqui ed associa ions wi h ‘illumina ion’ ( ezzano &
Fallini, 2021).
While, unde s anding p ice sensi i i y is c i ical in ma ke ing, bu i is no he only elemen in luencing
consume beha iou . he e a e dimensions ha in luence how buye s pe cei e alue, and hese ac o s
can in luence hei p ice sensi i i y, as de eloped om p e ious s udies, such as quali y alue, ime alue,
posi ion alue, and in o ma ion alue. highe cos s may imp o e pe cei ed quali y as he pe cep ion o
quali y can he e o e in luence how much a buye is willing o pay o a p oduc (Danes &
lindsey-Mullikin, 2012).
in ma ke s whe e imely access o p oduc s is c i ical, he speed a which i ems become a ailable
o en hea ily in luences consume pu chases. cus ome s in hese ime-sensi i e si ua ions may ag ee o
pay p emium p icing o unde sco e hei pe cei ed alue o ob aining p oduc s apidly (Boyaci & ay,
2003). Fu he mo e, when b ands s a egically highligh hei uniqueness and di e en ia ion, hey can
pa ly mi iga e p ice sensi i i y ha consume s may a ach o ha o e ing (kaul & Wi ink, 1995). in
de e mining op imal p icing o enhanced p oduc s, cus ome alue pe cep ions ep esen i al da a
poin s (ingenbleek e al., 2010).
in his s udy, cus ome li e ime alue (clV) was examined om a non- inancial s andpoin . consume
li e ime alue (clV) is ela ed o consume pu chasing pa e ns, which may include epea pu chases o
inc eased pu chases h ough me hods like as up-selling and c oss-selling (kuma e al., 2010). cus ome
li e ime alue (clV) is becoming mo e widely ecognised as a key indica o in cus ome ela ionship
managemen (c M) o acqui ing, cul i a ing, and main aining he mos aluable cus ome s (Venka esan
& kuma , 2004).
2. Aim o esea ch
he aim o his s udy is o examine he impac o p ice sensi i i y dimensions on cus ome li e ime alue
in he egyp ian luxu y sec o . he goal is o del e in o he nume ous ace s and insigh s ha de ine his
in e ac ion, p o iding a ho ough g asp o he dynamics a wo k, hus illing po en ial knowledge gaps
in his a ea o s udy.
3. Li e a u e e iew
3.1. P ice sensi i i y
sensi i i y o p ice, o elas ici y, is a c ucial concep in consume beha iou . i desc ibes how consume s
espond o p ice changes o p oduc o se ice modi ica ions (Yue e al., 2020). cus ome s a e willing o
pay mo e when pe cei ed alue exceeds cos (Fang e al., 2016). his p icing esponse is ex emely alu-
able o ma ke ing s a egies ( undh, 2013). none heless, i is essen ial o ecognise ha consume p ice
sensi i i y a ies.
i changes based on a numbe o a iables, such as pe sonal ai s, he p oduc i sel , needs,
b and amilia i y, budge , and ime (na a ajan e al., 2017). P ice decisions made by a business a e
hea ily in luenced by his p ice-sensi i i y luidi y, which also di ec ly a ec s o e all p o i abili y
(gao e al., 2017). Mo eo e , Mon oe (1990) and Zei haml (1988) con end ha consume s’ assess-
men s o a p oduc o se ice’s wo h a e impac ed by wha hey expec ed and wha hey ac ually
ecei ed.
3.1.1. Quali y alue
in consume beha iou , he e m ‘quali y’ e e s o a cus ome ’s assessmen o a p oduc ’s supe io i y o
pe ec ion. his is dis inc om he p oduc ’s ac ual quali y and is a holis ic assessmen a he han a
speci ic ai (Zei haml, 1988). Quali y comp ises all a p oduc ’s o se ice’s ea u es and componen s ha
cOgen BUsiness & ManageMen 3
con ibu e o i s abili y o mee consume needs. When he quali y o a p oduc is excep ional, i is mo e
likely o in luence pu chasing decisions by inc easing he pe cei ed alue (Waluya e al., 2019). as a
esul , consume s seek long-las ing p oduc s, emphasising he impo ance o g ea quali y o long- e m
g ow h (aliye e al., 2019).
Fu he mo e, p oduc quali y media es he link be ween p ice sensi i i y and pu chasing desi e. When
he quali y o a p oduc is high, cus ome s a e less in luenced by p ice changes and mo e likely o buy,
demons a ing a willingness o pay mo e o g ea e quali y (gomes e al., 2023). i is no ewo hy in he
luxu y business ha b ands p io i ise c a smanship and quali y assu ance, e en allowing no aul s. as a
esul , while acqui ing luxu y i ems, shoppe s should be wa y o unjus i iable p ice inc eases (simon &
Fassnach , 2019).
3.1.2. Time alue
ime-based alue is he pe cei ed alue o a p oduc by a cus ome depending on ac o s such as a ail-
abili y, p omo ions, and decision ime. cus ome s p io i ise ime when hey a e ime-p essed, a condi ion
known as ‘ ime amine’, which leads o g ea e p ice sensi i i y and e en ual b and swi ching i hei ime
is no app ecia ed (g an e e al., 2015).
Businesses can p io i ise he cus ome expe ience by espec ing ime, esponding quickly o com-
plain s, and main aining clea communica ion o inc ease loyal y (g an e e al., 2015). cus ome s who
alue hei ime, on he o he hand, a e mo e willing o in es in ime-sa ing p oduc s and se ices.
luxu y consume s place a high alue on cus omisa ion and pe sonalisa ion and a e willing o pay mo e
o p oduc s and se ices ha may be ailo ed o hei p e e ences while also sa ing hem ime (choo
e al., 2012).
excessi e wai imes can ha e a de imen al in luence on consume sa is ac ion, causing annoyance
and dissa is ac ion. cus ome happiness can be inc eased by accu a ely es ima ing wai imes, p o iding
in e es ing ac i i ies du ing wai s, and gi ing online o mobile al e na i es o physical wai ing. he e o e,
businesses should be cau ious abou sa ing ime o cus ome s (Palawa a, 2015).
3.1.3. Posi ion alue
P ice sensi i i y may be educed by b and posi ioning, pa icula ly when a b and is posi ioned o empha-
sise i s dis inc i eness (kaul & Wi ink, 1995). Posi ioning, a 1960s concep , is essen ial in s a egic ma -
ke ing, along wi h segmen a ion and a ge ing. i s pu pose is o dis inguish a b and om compe i o s,
espond o cus ome expec a ions, and gene a e b and loyal y and equi y, hence imp o ing long- e m
compe i i e ad an age (alpe & ga y, 1969). e ec i e b and posi ioning can esul in conside able com-
pe i i e ad an ages, while high b and p esence can esul in majo ma ke bene i s (camb a-Fie o
e al., 2021).
o p ope ly posi ion a b and, ma ke e s mus de ine and di e en ia e hei b and om compe i o s.
his includes de e mining he a ge ma ke and ele an compe i ion, de e mining he bes poin s o
pa i y and di e ence in b and associa ions, and de eloping a b and slogan ha encompasses he b and’s
posi ioning and essence (ko le & kelle , 2016). ano he impo an pa o b and posi ioning is a b and’s
compe i i e s ance, which is gene ally ep esen ed in i s agg essi e ma ke pos u e. his includes he
dis inc b and image ha buye s pe cei e, which is de eloped by bo h egula and emo ional consume
esea ch (Mind u e al., 2015).
3.1.4. In o ma ion alue
he in o ma ion alue dimension is conce ned wi h he impo ance o knowledge ecei ed h ough
co-c ea i e beha iou s, unde sco ing he impo ance o g oup in e ac ions in he gene a ion o pe cep-
i e knowledge (Zhu e al., 2022). he p ima y de e minan o in o ma ion’s alue is i s a ailabili y. his
is due o he impo ance o educa ing consume s and gi ing hem he in o ma ion, hey need o make
he bes decisions (kim & Phua, 2020).
Building on his, consume s make quali y decisions based on a a ie y o cues, such as in o ma ion
con ained inside he goods o se ices as well as da a acqui ed om o he sou ces. cus ome s ely less
4 s. a. aWaaD e al.
on hese indica o s when hey lea n mo e abou a company’s p oduc o e ings. in e es ingly, pu chase s
who a e be e knowledgeable abou a p oduc o se ice ely less on ex e nal signs o assess i s quali y
(alshibly, 2015). cus ome s o en ely on epu able sou ces o in o ma ion when making pu chasing deci-
sions (an & han, 2020).
in addi ion, businesses use cus ome in o ma ion o enhance hei se ices, goods, and o e all cus-
ome expe ience h ough he s a egic p ocess o cus ome knowledge managemen (smi h & Mckeen,
2005). in-dep h p oduc de ails can in luence consume s’ pe cep ions o luxu y goods, inc easing hei
sense o ewa d and encou aging hem o spend mo e money (lim e al., 2014).
in gene al, when cus ome s ac i ely engage wi h a se ice, i enhances hei unde s anding o he
se ice’s wo h and i s unique ea u es. his, in u n, ends o dec ease hei esponsi eness o p ice
luc ua ions and has an impac on hei choices when making pu chases (hsieh & chang, 2004).
3.2. Cus ome li e ime alue
cus ome li e ime alue (clV) is ela ed o consume pu chasing pa e ns, which may include epea
pu chases o inc eased pu chases h ough me hods like up-selling and c oss-selling (kuma e al., 2010).
cus ome li e ime alue (clV) es ima ions include non- inancial cha ac e is ics such as happiness and
loyal y in measu ing a cus ome ’s o e all alue o e ime, suppo ing i ms in iden i ying and main aining
impo an cus ome s. o main ain hese, excep ional cus ome se ice and expe iences a e essen ial,
which can be o e ed h ough swi issue esponses ac oss se e al channels. cus ome sa is ac ion is
boos ed by de o ed, skilled cus ome se ice pe sonnel who ins il a sense o wo h and loyal y in hei
cus ome s. anspa ency ega ding p oduc ea u es, p icing, and po en ial issues builds us and educes
nega i e commen s (ali e al., 2018).
P o iding high-quali y goods o se ices ha con inuously exceed clien expec a ions boos s loyal y
e en mo e. lis ening o clien s and add essing hei conce ns inc eases happiness and loyal y (kuma ,
2008). long- e m connec ions may no necessa ily esul in inc eased p o i abili y due o signi ican
income and cos a iances ac oss consume s. as a esul , ecen esea ch has emphasised he impo ance
o ine- uning cus ome acquisi ion, e en ion, and de elopmen s a egies o boos cus ome li e ime
alue (clV), hence inc easing sha eholde alue (lemon & Ve hoe , 2016).
i is inc easingly becoming iden i ied as an impo an indica ion in cus ome ela ionship managemen
(c M) o ob aining, g owing, and e aining he mos alued cus ome s. howe e , many i ms ail o use
clV me ics e ec i ely. i may s a wi h less p o i able cus ome s, o hey may lack he skills equi ed o
cus omise he clien expe ience o op imise alue gene a ion (Venka esan & kuma , 2004).
gi en he lack o non- inancial measu es o cus ome li e ime alue (clV), his s udy used a mul idi-
mensional app oach based on p io academic esea ch. he p e ious s udy p o ided ou sepa a e
dimensions, p o iding a mo e ho ough and nuanced knowledge o clV om non- inancial pe spec i es.
Fo psychological alue, cus ome s s i e o de elop an e ec i e and cons an sense o sel -wo h; sa is-
ying his psychological equi emen leads o a connec ion be ween cus ome s and b ands (sega a-Moline
& Moline - ena, 2022).
Fo social alue, cus ome beha iou in he luxu y business is equen ly impac ed by social no ms
and social ins i u ional s anda ds, such as hose es ablished by e e ence g oups. Unde s anding he
impac o social alue judgemen s on luxu y pu chasing is c ucial o luxu y b ands o p ope ly a ge
and manage hei b and image (shukla, 2012). Financial alue is he mone a y alue a ibu ed o a
cus ome ’s ela ionship wi h a co po a ion o e he li e o ha ela ionship (i ine e al., 2016).
Fo unc ional alue, unde s anding he concep o unc ional alue is c i ical in de e mining how well
p oduc s, se ices, o solu ions i he needs and expec a ions o cus ome s o use s (ka o, 2021).
4. Explo a o y e idence
he pu pose o his explo a o y s udy is o del e deepe in o he ac o s ha in luence p ice sensi i i y
and cus ome li e ime alue in he con ex o egyp ian luxu y consume s. gi en he sca ci y o exis ing
s udies in his ield, an explo a o y esea ch me hodology was selec ed as app op ia e. his o m o
cOgen BUsiness & ManageMen 5
esea ch ills knowledge gaps and p o ides basic insigh s ha can be used o lead u he con i ma o y
s udies.
4.1. Seconda y da a analysis
his esea ch in es iga es how luxu y b ands in he hospi ali y, eal es a e, and au omobile indus ies
lowe p ice sensi i i y while inc easing cus ome alue. ho els wi h in e na ional ecogni ion, such as he
Bu j al a ab Jumei ah, he i z-ca l on, and Fou seasons ho el geo ge V, p o ide g ea se ices,
high-quali y ameni ies, and pe sonalised expe iences. emaa Mis and sODic, o example, o e dis inc-
i e designs, communi y in e ac ion, and a a ied ange o ameni ies. simila ly, luxu y au omake s such
as Fe a i, Po sche, and olls- oyce emphasise hei dis inc i e b and ea u es such as he i age, c a s-
manship, pe o mance, and commi men o quali y.
hese ac ics jus i y p emium p icing while also inc easing clien loyal y. acco ding o he su ey, c e-
a ing ou s anding, pe sonalised expe iences is c i ical o minimising p ice sensi i i y and enhancing cus-
ome li e ime alue in he luxu y indus y. o ga he di e se pe spec i es, in-dep h in e iews we e
conduc ed wi h bo h a-class cus ome s and indus y p o essionals.
4.2. Quali a i e analysis
in-dep h in e iews wi h indus y expe s and a-class consume s unco e addi ional alues and ech-
niques ha boos clien li e ime alue and alle ia e p ice sensi i i y. ho el manage s place a p emium on
clien happiness, se ice excellence, and eedback, whe eas eal es a e p o essionals place a p emium on
he unique alue o hei p oduc s, cus ome -cen ic s a egies, and communi y in ol emen . au omobile
indus y p o essionals use b and p es ige o o se p ice sensi i i y, ocusing on c ea ing ou s anding
clien expe iences. simila ly, a-class clien s conside se ice quali y, imeliness and e iciency, b and ec-
ogni ion, and loca ion alue o be impo an ac o s in hei pu chasing decisions. hese aspec s impac
he o e all cus ome expe ience, which leads o enhanced loyal y and cus ome li e ime alue.
5. Concep ual model and hypo hesis
5.1. Hypo heses de elopmen
hese hypo heses de elopmen p esen s he associa ions p oposed by he heo e ical amewo k p o-
duced om he p e ious s udies (Figu e 1).
H1: he e’s a signi ican impac o quali y alue on cus ome li e ime alue.
H2: he e’s a signi ican impac o ime alue on cus ome li e ime alue.
H3: he e’s a signi ican impac o posi ion alue on cus ome li e ime alue.
H4: he e’s a signi ican impac o in o ma ion alue on cus ome li e ime alue.
Figu e 1. es ima ed esea ch model. sou ce: Based on au ho s.
6 s. a. aWaaD e al.
6. Resea ch me hodology
6.1. Resea ch design
Quali a i e app oach: as p e iously s a ed, an explo a o y s udy in he o m o in-dep h in e iews wi h
indus y p o essionals and cus ome s will gain insigh s in o he alues o p ice sensi i i y and cus ome
li e ime alue a e e iewing p e ious s udies.
Quan i a i e app oach: his s udy was conduc ed o gain a ‘single c oss-sec ional da a collec ion
design’ o collec esponden s’ commen s a a single poin in ime. he c oss-sec ional design has been
a basic s a egy in many disciplines o esea ch employed a ‘snapsho ’ o he popula ion a a ce ain
ime, allowing o he simul aneous examina ion o mul iple a ibu es wi hou he need o ex ensi e
s udy. his cha ac e is ic no only sa es ime and esou ces bu also allows o he apid de elopmen o
meaning ul in o ma ion (le in, 2006).
P ima y da a o his s udy will be ga he ed h ough wo main me hods: s uc u ed su eys o acqui e
quan i a i e da a, and in-dep h in e iews o ga he quali a i e da a. s uc u ed su eys consis ing o
close-ended ques ions will be used o collec quan i a i e da a. in-dep h semi-s uc u ed in e iews wi h
open-ended ques ions will be conduc ed o ga he quali a i e da a. Quali a i e in e iews a e pa icula ly
use ul du ing he explo a o y phases o esea ch o gain a ho ough unde s anding o he phenomena
unde in es iga ion (c eswell, 2012). Using bo h quan i a i e su eys and quali a i e in e iews will allow
o collec ing obus p ima y da a o add ess he esea ch ques ions. While quan i a i e da a migh p o-
ide nume ical p ecision, i may lack he dep h and con ex ha quali a i e da a p o ide. as a esul , i
is equen ly necessa y o desc ibe he ela ionships be ween a iables o demons a e how hey in e ac
wi h one ano he (c eswell, 2012).
6.2. Sampling design and plan
he s udy elies on a sample o class a clien s om egyp ’s luxu y sec o . gi en he popula ion’s size
and di e si y, a ca e ul selec ion guide is employed o iden i y and au hen ica e hese clien s. Because
he popula ion is inde e mina e, p obabili y sampling app oaches, in which each ins ance has a
known and non-ze o p obabili y o being chosen (saunde s e al., 2009), a e subs i u ed by
non-p obabili y and judgemen sampling me hods. hese me hods en ail selec ing speci ic uni s om
he popula ion ha a e assumed o e lec he la ge uni e se (ko ha i, 2017). Pa icipan s we e
selec ed using a con enience selec ion s a egy based on hei accessibili y, a ailabili y, and p oximi y
o he s udy. his me hod en ails ge ing in o ma ion om people who a e eage , iendly, o easily
accessible o he esea che (schol z, 2021). in con as , judgmen al sampling is based on he esea ch-
e ’s opinion o who will p o ide he bes in o ma ion o mee he s udy’s objec i es. he esea che
mus seek ou people who ha e he necessa y expe ise and a e p epa ed o p o ide i (e ikan &
Bala, 2017).
6.3. Measu emen de elopmen (Table 1)
7. Analysis o esul s
a o al o 232 su eys we e comple ed and acqui ed om esponden s who pa icipa ed in his s udy.
he desc ip i e esul s, as shown in able 2, show ha males made up mos o he sample (58.1%). he
age g oup was dispe sed in such a way ha mos o he sample (76.4%) was beyond he age o 40.
Because he s udy a ge ed people wi h sala ies g ea e han $50,000, i is unde s andable ha jus 5
(2.6%) o hose in he sample we e unde he age o 30. Mo e han hal o he sample (70.7%) had
pos g adua e s udies as an educa ional backg ound. acco ding o he sample’s occupa ions, adminis a-
i e wo k o ei he he public o p i a e sec o (51.3%) was he mos o en epo ed job, ollowed by
specialised p o ession (22.5%), eelance (13.6%), and academic (12.6%). 112 people epo ed incomes
cOgen BUsiness & ManageMen 7
anging om $50,000 o $100,000 (58.6%). Only 18 people (9.4%) we e epo ed o ha e an income
g ea e han $150,000.
7.1. Dimensional eliabili y and alidi y
P incipal componen analysis was u ilised o ex ac he i ems om he explo a o y ac o analysis. ime
alue, in o ma ion alue, and b and quali y posi ioning alue we e he h ee c i e ia. he quali y posi-
ioning alue combines he quali y and posi ion o he b and. Following he explo a o y ac o analysis,
he new dimensions’ eliabili y and alidi y should be assessed. as a esul , a con i ma o y ac o analysis
is ca ied ou ( able 3).
Table 1. Va iables scale i ems and measu es.
Va iable sub a iable Concep ual de ini ion ope a ional de ini ion
P ice Sensi i i y Quali y Value Re e s o a p oduc ’s o se ice’s pe cei ed ad an age
based on i s undamen al a ibu es and pe o mance
(Zei haml, 1988).
4 s a emen s a 5-poin Like scale.
(Kap e e & Vale e-Flo ence, 2021;
ak, 2020)
Posi ion Value o achie e ma ke leade ship, a company o p oduc
mus be dis inguished om compe i o s based on
ac ual dimensions, which may include p oduc
ea u es o co po a e alues ha a e signi ican o
cus ome s (DiMingo, 1988).
4 s a emen s a 5-poin Like scale
(Özkan & e im, 2020; Kaleka &
Mo gan, 2019; Resea che ).
ime Value ime is commonly desc ibed by esea che s as a
es ic ed and sca ce esou ce. he wo d ‘sa ing ime’
e e s o edis ibu e ime ac oss a ious asks o
boos o e all e iciency (Be y e al., 2002).
3 s a emen s a 5-poin Like scale
(Hennigs e al., 2013; Resea che ).
in o ma ion Value he amoun o de ailed p oduc in o ma ion p o ided
o cus ome s by a co po a ion (Hou & ang, 2008).
4 s a emen s a 5-poin Like scale.
(Hennigs e al., 2013; Resea che ).
Cus ome Li e ime
Value
Psychological Value Pleasu e, enjoymen , and senso y sa is ac ion a e
elici ed as emo ional o a ec i e s a es (Kujala &
Väänänen-Vainio-Ma ila, 2009).
4 s a emen s a 5-poin Like scale.
(Hennigs e al., 2012; Kap e e &
Vale e-Flo ence, 2021)
social Value i is necessa y o ha e social and ex e nal es eem,
posi ion, powe , con ol and dominance,
achie emen , compliance, equali y, help ulness,
hones y, and loyal y (she h e al., 1991).
4 s a emen s a 5-poin Like scale.
(Kap e e & Vale e-Flo ence, 2021;
ak, 2020)
Financial Value he ou come o balancing he bene i s ob ained s he
cos s incu ed du ing a ansac ion (Ka a ia and
saini, 2020).
4 s a emen s a 5-poin Like scale.
(Hennigs e al., 2012; Resea che ).
Func ional Value he pe cei ed bene i ob ained om an op ion’s
po en ial o unc ional, u ili a ian, o physical
pe o mance is e e ed o as p ac ical alue. his is
he alue a clien ob ains om he p ac ical and
angible unc ionali y o a p oduc o se ice (she h
e al., 1991).
5 s a emen s a 5-poin Like scale.
(Hennigs e al., 2012)
sou ce: ak (2020); Kap e e and Vale e-Flo ence (2021), Özkan and e im (2020), Kaleka and Mo gan (2019); Hennigs e al. (2013), Hennigs
e al. (2012), Kap e e and Vale e-Flo ence (2021), ak (2020), and Kap e e and Vale e-Flo ence (2021).
Table 2. F equency ables o demog aphic a iables.
Va iable Ca ego ies F equency Pe cen age
gende Female 80 41.9
Male 111 58.1
age 21 less han 30 5 2.6
30 less han 40 40 20.9
40 less han 50 78 40.8
50 and abo e 68 35.6
academic expe ience
occupa ion
Bachelo deg ee 56 29.3
Pos g adua e Deg ee 135 70.7
occupa ion academic 24 12.6
adminis a i e 98 51.3
F eelance 26 13.6
specialized P o ession 43 22.5
Mon hly income 100,000 − 150,000 61 32
150,000+ 18 9.4
50,000 − 100,000 112 58.6
sample size (n) 191 100
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