Service quality and price perception of service: Influence on word-of-mouth and revisit intention. (April 2016) - Liu, Chih-Hsing Sam
Abstract: Drawing on an overarching framework of marketing theory, this study develops and tests an integrated model of service quality that explicates the affective mechanisms through which service quality is associated with price perception of service (e.g., monetary price and behaviour price), word of mouth (WOM) and revisit intention. In a sample of 484 low-cost airline passengers, we found service quality to be related to increased price perception of service as a result of increasing passengers' WOM, which also creates success in this regard by increasing their revisit intention. Moreover, it is not surprising that there was a positive relationship between service quality and WOM mediated by perceived value of monetary price. The theoretical and empirical implications of these results are discussed. Highlights: This study develops and tests an integrated model of service quality. Service quality is associated with price perception of service. Service quality is associated with word of mouth (WOM) and revisit intention. We tested our hypotheses using 484 low-cost airline passengers. Service quality and WOM mediated by perceived value of monetary price.