Customers’ perception of value is one of the major issues in marketing area due to its relationship to vital concepts like market share and (re)buying intentions. Concept of value can be a developing and interesting topic for users and also marketing managers.
In the literature the perceived value concept is described as the ratio of perceived benefits and perceived costs by many authors like Monroe and Zeirhaml. In extent of goods and services, the nature of customer satisfaction have analysed by many researchers. The perceived value is a crucial concept for marketing discipline, because it is related to level of customer satisfaction that may change purchase intention. But the relationship between perceived value, satisfaction and intention of purchase/repurchase has not be completely described yet. When it comes to new product designs like wearable technologies that can combine internet connection, data access, health tracks, there is a need to investigate it deeply with its dimensions.
In order to exist in the aggressive competitive market, creating perceived value is a requirement for businesses. Therefore, the effects of perceived value on purchase intention in wearable technologies should be understood deeply.
Prior research has empirically verifies the power of perceived value on user behaviour in a various such as traditional shopping, online shopping and mobile shopping (Yang Liu et al., 2015).
When researchers mainly concentrate on the general perceived value, they ignore the dimensions of perceived value.
In the context of wearable technologies, customers not only seek for perceived usefulness but also inquire social images (value), such as interaction with others and the self-fulfilment (Rintamäki et al., 2006). Therefore, this research breaks down each dimension namely perceived benefits and perceived risk into three dimensions as functional value, social value, emotional value and financial risks, performance risk and privacy risks to analyse the influence of perceived value on buying intention in wearable technologies context.
This will be the first study examines the perceptions of the risks and benefit associated with acceptance of the wearable technologies. And the privacy risk has not been tested as a variable in a content of perceived risk Therefore, this research will provide a complete knowledge of how perceived value influences the user behaviour in wearable technologies context. This research will also provide suggestions for wearable technology producers, business development and marketing managers as to how to attract and retain users.
‘Perceived Value’ concept became very popular issue in 1990 therefore researcher’s motivation to explore this topic was high and it have been continuous to draw attention in present century. According to the Marketing Science Institute, the topic of ‘Perceived Value’ was included in the list of research priorities for 2006–2008. It was a clear proof that high level of interest to the paradox of ‘Value creation’ was emerged among academicians and also industry. ‘Perceived Value’ was started to conceive as major element in strategic management.
‘The creation of customer value must be the reason for the firm’s existence and certainly for its success’ these words were mentioned by Slater in 1997. As can be seen, the achievement of customer value was accepted as crucial part of competitive advantage. It has been linked that loyal customers, high profit and customer value was strongly related (Khalifa, 2004). Especially, consumer value concept was evaluated as vital topic that has to be considered in all marketing exercises.
Although there was a high interest toward to the concept of value that was turned out; it has been overused and corrupted in many social science and management literature. Several versions of definition for ‘perceived value’ can be found in the marketing literature. Perceived value has been arose from equity theory and according to that; it can be found dividing the buyer’s results to provider’s results.
Table 1 presents a representative overview of definitions of customer-perceived value.
Zeithaml’s(1988) classic definition for value is ” . . . the consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given”, this definition is categorised as uni-dimensional because customers evaluate the value of product only based on what is taken compared to what is given. But other authors discussed that; evaluating the value concept as a simple settlement between benefit and sacrifice would be limited. Some other authors critized the uni dimentional view and broaden the value concept with new dimensions like perceived quality, perceived price. (Holbrook, 1994, 1999; Sweeney and Soutar, 2001).
Due to the complex structure of the concept; the researchers could not agree on the dimensions and theory of perceived value , The aspects of the perceived value definition .
In the literature, there is confusion about the concepts like value, values, utility and price. The differences between these concepts are not significantly determined. For example; the differences between the concept of value and values can be example to that issue. Basically value can be described as exchange off benefit and sacrifices; when ‘values’ means rules, norms, beliefs that provide a base for judgements. It is obvious that the concept of value and values are distinct.
The comparison between term of value, utility and quality has been done. The theory of utility provides expansion to the concept of utility. According to theory of utility, value is the difference between ‘utility’ that is taken from the product or services and ‘disutility’ that can be described as paid price. Some researchers used utility theory to deeply investigate the perceived value concept but the theory is not a strong one; because utility cannot be only construct representing the benefit side and also the price itself cannot be only sacrifice. In 1990’s, Monroe summarised the situation as; ?t is clear that perceived value should be described with broad and deep constructs. The constructs of price and utility would not be deep enough to reach a clear conclusion about the perceived value concept.