Proceedings of Annual Tokyo Business Research Conference 9 -10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan ISBN: 978-1-922069-88-7 Concept Based Value Creation in Wellness Tourism: Perception of Nature vs Natural Malliga Marimuthu*, Siti Rohaida Mohamed Zainal and Hui Wen (Stephanie) Chuah In the tourism industry, the creation and transmission of value for customers has been hailed as the next source of competitive advantage (Eid and El-Gohary, 2014; Gallarza and Gil, 2008), and has been argued to be the most important driver of customer satisfaction and behavioural intentions (Chen and Chen, 2010; Eid, 2013). Concomitantly, the customer value creation is considered as one of the cornerstones for the growth of wellness tourism. Wellness tourism refers to travel for the purpose of promoting health and well-being by visiting selected wellness providers such as beauty spa, lifestyle resort, or spiritual retreat (Voigt et al., 2011). Although wellness tourism has emerged and grown with the “travel to feel well” trend (Lehto et al, 2006), however, conceptualizations of customer value, and understandings of how value is created and evaluated in this promising niche market remains under-researched. There is a lack of investigation regarding the effect of specific concept on the formation of perceived value which later drives consumers’ satisfaction in this area. Therefore in this paper, the researcher proposes a research model to examine the effect of nature vs natural concepts on perceived value in the context of wellness tourism. Perceived value is regarded as an outcome construct that results from trade-off between the benefits and barriers of consuming wellness services. Through an extensive literature review, we identify seven benefit (transcendence, physical health and appearance, escape and relaxation, epistemic, social, indulgence, and emotional) and three barrier (interpersonal, intrapersonal, and structural) attributes. While the perceived benefits are expected to affect the value perceptions positively, the perceived barriers are expected to affect the value perceptions negatively, perceived value will, in turn, determine consumers’ purchase decision. The measurement instrument of consumer perceived value developed in this study provides insights into the benefit and barrier factors that influence consumers’ value perceptions within a specific concept which refers to creating sense of nature vs natural as driver of value creation in this business. From a theoretical perspective, the paper extends on prior research of perceived value through introduction of a specific concept to describe value creation and evaluation process. It may also help managers to understand how specific concept can be used to support value creation and assist them to develop superior concept based value strategies. ______________________________________________________________________________ *Malliga Marimuthu, B.A (Hons), M.A, MBA, PhD (Corresponding author) Senior Lecturer, Department of Marketing, School of Management, Universiti Sains Malaysia Penang 11800, Malaysia, Ph:+604 6532332, Fax:+6046577448, Email: malliga@usm.my; malligausm@gmail.com Siti Rohaida Mohamed Zainal, Universiti Sains Malaysia, Malaysia Hui Wen (Stephanie) Chuah, Universiti Sains Malaysia, Malaysia 1 Proceedings of Annual Tokyo Business Research Conference 9 -10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan ISBN: 978-1-922069-88-7 Acknowledgements The authors would like to thank Universiti Sains Malaysia for providing funding for this study under grant no: 1001/PMGT/816261. References Chen, C. F. and Chen, F. S. (2010), “Experience quality, perceived value, satisfaction and behavioral intentions for heritage tourists”, Tourism management, Vol. 31 No.1, pp. 2935. Eid, R. (2013), “Integrating Muslim customer perceived value, satisfaction, loyalty and retention in the tourism industry: an empirical study”, International Journal of Tourism Research, Vol. 17 No, 3, pp. 249-260. Eid, R., and El-Gohary, H. (2014), “Muslim tourist perceived value in the hospitality and tourism industry”, Journal of Travel Research, doi: 10.1177/0047287514532367 Gallarza, M. G., and Gil, I. (2008), “The concept of value and its dimensions: a tool for analysing tourism experiences”, Tourism Review, Vol. 63 No. 3, pp. 4-20. Lehto, X. Y., Brown, S., Chen, Y., and Morrison, A. M. (2006), “Yoga tourism as a niche within the wellness tourism market”, Tourism Recreation Research, Vol. 31 No.1, pp. 25-35. Voigt, C., Brown, G., and Howat, G. (2011), “Wellness tourists: in search of transformation”, Tourism Review, Vol. 66 No. (1/2), pp. 16-30. 2