Purpose – The aim of this paper is to provide a literature review of the state‐of‐the‐art and up to date concepts and measures undertaken in the research on perceived value. The purpose especially is to provide a comprehensive and systematic overview of the research on perceived value.Design/methodology/approach – The common perceived value definitions, conceptual and measurement approaches and its close relationship with important and highly researched service industry components such as service quality and customer satisfaction are discussed.Findings – This paper demonstrates underlying and foundational theories, systematises the research streams and addresses the unsolved concerns of perceived value. The paper concludes with recommendations for the future research and application of perceived value as being relevant to the service industry.Originality/value – The contribution of the paper lies in achieving a more profound understanding of the nature of perceived value for, equally, academics and industry.
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