Moderating Impacts of Transaction Utility on Relationships Among Price, Quality, and Value

Seung Hyan Lee
Ji-Eun Lee, University of Central Florida


This study investigated how the direction and magnitude of transaction utility (reference price minus actual price paid) affect price, quality, and value in the lodging industry. An online survey was designed and 490 responses were used in the data analysis. Confirmatory factor analysis, hierarchical regression, and analysis of variance were employed to test the proposed hypotheses. Moderating effects of transaction utility were found where both the direction and magnitude of transaction utility altered consumers’ perceptions of how quality influenced value. The theoretical and practical implications as well as limitations and possibilities for future research were discussed.