A Study of Price and Quality in Service Operations

Studies the relationship between perceived price and perceived quality for the three types of services, namely, pure, mixed, and quasi‐manufacturing classified by Chase and Tansik, and the relative importance of five dimensions of service quality identified by Parasuraman et al. Finds that the relationship between perceived price and the five dimensions of service quality appears to be very weak for pure and quasi‐manufacturing services, but is statistically significant for mixed service. Reliability dimension is statistically significant for all three types of service. Tangible dimension is a critical variable for mixed service while the empathy dimension is important for quasi‐manufacturing service. On the other hand, the relationship between perceived price and overall service‐quality is significant for quasi‐manufacturing service, but is weak for pure and mixed services.