The authors examine how price, performance, and expectations influence satisfaction with service exchanges. They develop a model incorporating pre- and post-purchase evaluations and test it with data from a simulated service experiment. The study hypothesizes that performance expectations will influence post-purchase performance perceptions and satisfaction, and that performance perceptions will impact satisfaction. It also hypothesizes that price consistency moderates the effect of expectations on performance/satisfaction judgments. When price and performance are consistent, expectations have an assimilation effect, but when inconsistent, expectations have no effect.

1. The Roles of Price, Performance,
and
Expectations in Determining
Satisfaction in Service Exchanges
46 / Journal of Marketing, October 1998
Vol. 62 (October 1998), 46-61

3. Authors
Glenn B. Voss :- (Ph.D., Texas A&M University) is the Marilyn and Leo Corrigan
Endowed Professor of Marketing in the Cox School of Business at Southern
Methodist University.
A. Parasuraman :- James W. McLamore Chair in Marketing, Professor, and
Department Chair, Marketing
Dhruv Grewal :- (Ph.D. Virginia Tech) is the Toyota Chair in Commerce and
Electronic Business and a Professor of Marketing at Babson College

4. Theoretical Framework
Construct :-
price, performance, and expectations play in determining satisfaction
in a discrete service exchange.
Independent Variables
Performance
expectations
perceived performance
Moderating variables
Price - Performance Consistency on the Satisfaction
Dependent Variables
pre- and post purchase

5. Abstract
The authors examine the roles that price, performance, and expectations play in
determining satisfaction in a discrete service exchange. The authors maintain that the
price fluctuations common to the many service industries that implement demand-oriented
pricing, combined with the inherent heterogeneity of service performance, likely
result in price-performance combinations that vary widely. Furthermore, the authors
propose that the level of price-performance consistency in a service exchange moderates
the relationship between performance expectations and subsequent performance and
satisfaction judgments. When price and performance are consistent, expectations have an
assimilation effect on performance and satisfaction judgments; when price and
performance are inconsistent, expectations have no effect on performance and
satisfaction judgments

6. Objectives of Study
In this study, Author undertake such an investigation by developing a model that
incorporates both pre- and post purchase evaluations and testing it with data from a
simulated service experiment. A unique feature of our study is the use of multimedia
technology to simulate a service exchange

8. Research Methodology
Research Design
Purpose of study
simulated service experiment
TYPE OF INVESTIGATION
Causal
STUDY SETTING
Contrived
Scaling
Likert Scale with 7 point scale (Strongly Agree to Strongly Disagree)
multiple-item scales for each of the five constructs

9. Hypothesis Development
H1a :- Performance Expectations – Post purchase performance perception
H1b :- Performance Expectations - Satisfaction
H2 :- Performance Perceptions - Satisfaction
H3 :- Post Purchase price perceptions : Satisfaction
H4a :- Pre purchase Price Perceptions :- Post purchase price perceptions
H4b :- Pre purchase Price Perceptions :- Satisfaction

10. Data Analysis

13. Thank You