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The purpose of this paper is to test perceived price and service quality as mediators between price fairness and perceived value in service encounters between micro-enterprises and their banks.

The study is based on a self-administered and internet-based questionnaire conducted in the banking industry. The sample consists of 381 micro-enterprises in South Africa that employ one or two staff members.

The findings of this paper provide evidence for both theory and practice that perceived price and service quality influence the relationship between business banking customers’ perception of price fairness and the value of the service offered.

The measurement and structural properties reported are satisfactory. This paper confirms the hypothesized relationships in the tested research model, and rejects a tested rival model. Limitations are reported, and suggestions for further research are provided.

This paper offers banking executives guidance in managing the pricing structure of their services, and highlights the value of offering greater transparency with regards to service charges and interest rates.

This paper contributes to insights into the mediating effects of perceived price and service quality between price fairness and perceived value in business relationships between micro-enterprises and their banks.

This study aims to explore the relationships, direct and indirect, between business customers’ perceived value, satisfaction and loyalty.

The study was set in the business banking industry, with data collected from 381 micro-enterprise business customers of a large South African bank by means of a self-administered, internet-based questionnaire.

The results reveal that business customers’ perception of value results in both economic and non-economic satisfaction. The results further indicate that non-economic satisfaction mediates the relationship between economic satisfaction and behavioural loyalty.

The study contributes to business services marketing literature by taking a multidimensional approach to the traditional value-satisfaction-loyalty chain.

The study contributes to business services marketing literature by emphasising the importance of perceived value in driving both economic and social outcomes, which, in turn, drives behavioural outcomes. By providing evidence of the outcomes associated with higher perceived value, service providers gain insights into the importance of focussing on value creation and the building of personal connections with micro-sized businesses to ensure future repurchase behaviour.

This research expands on current value research by positioning economic and non-economic satisfaction and attitudinal and behavioural loyalty as outcomes of business customers’ perceived value. This is possibly the first study to investigate satisfaction and loyalty as outcomes of perceived value where both comprise two distinct dimensions.