Technology-based service provides greater functional values for consumers than does traditional non-technology-based service. Most studies stress the importance of technology as an e-service instrument, but some contend that consumers may be incapable or reluctant to interact with technologies, or may experience them negatively while using. Therefore, although technology may increase consumer value, perceived value may be minimized because of inadequate or limited consumer knowledge or risk perceptions associated with its use and application. Through two experimental studies, this paper demonstrates that both perceived knowledge and perceived risk are critical moderators in forming consumer perceived value in e-service contexts. Furthermore, this paper reveals the following: (a) the merely superficial signs of technological innovation may represent value for consumers, (b) consumer knowledge may not always represent an advantage for e-service firms, and (c) risk has asymmetric moderating effects with both positive and negative implications. This paper also discusses suggestions for knowledge management and marketing strategies.