This paper reviews the concept of perceived service quality and provides an update to the body of service quality knowledge. It consolidates the pathway of perceived service quality concept, from its emergence to the research model’s development. It also critically reviews service characteristics as prerequisites of perceived service quality conceptualisation. The examination of six perceived service quality models is intended to identify a superior model that could be used by further research. Yet, overall, the paper challenges the relevance of existing models for the current stage of service quality research. It also justifies the need to move towards a revised, service-driven framework and to consider perceived service quality through the lens of the customer.