Correspondence: Kristina Heinonen, CERS Centre for Relationship Marketing and Service Management, Hanken Swedish School of Economics and Business Administration, P.O. Box 479, Helsinki FIN-00101, Finland. Tel: +358 9 431 331; Fax +358 9 431 33 287; e-mail: kristina.heinonen@hanken.fi

¹is Hanken Foundation Assistant Professor at the marketing department at HANKEN Swedish School of Economics and Business Administration in Helsinki, Finland. She is also associated researcher at CERS Centre for Relationship Marketing and Service Management, the research centre linked to the marketing department at HANKEN. Her research interests include consumer use and perceptions of digital services, digital marketing communication, as well as the influence of digitalisation on customer relationships.

Received 25 August 2006; Revised 25 August 2006.

Abstract

A conceptual framework for perceived value of online banking services is developed. The nature of four value dimensions is explored in the context of online banking services. In two empirical studies the relative importance of each value dimension is measured and the findings indicate that the temporal and spatial dimensions are perceived as more important than traditional dimensions based on outcome and process elements. Sub-dimensions of technical, functional, temporal, and spatial service value are also identified. It is suggested that temporal and spatial flexibility is only one aspect of temporal and spatial value. The paper extends prior research on e-services by conceptualising online banking service value as a multidimensional and hierarchical construct and separating each value dimension into sub-dimensions. It suggests a holistic perspective of service value and a dynamic nature of value dimensions: although the separate value dimensions involve different aspects of the service value, as a whole they fulfil the same need. The paper contributes to marketing research and practice with its approach to how value can be conceptualised for bank services. Explanations for the dynamics of the value dimensions are proposed.