The proposition that guides this article is that value for money not only influences customers’ choice behavior at the prepurchase phase but also affects their intention to recommend and return behavior at the postpurchase phase. Perceived value is conceptualized as consisting of two dimensions: acquisition value and transaction value. The study applied a two-dimensional value scale developed by Grewal, Monroe, and Krishnan to hospitality services; hotels, and restaurants. Although the scale was found to be reliable, there were some concerns about its validity across the two studies. In particular, although the dimension of acquisition value was found to be valid, transaction value showed poor validity. The conclusion suggests that a new conceptualization of transaction value and a better scale should be developed for the evaluation of hospitality services.
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