Service value revisited: Specifying a higher-order, formative measure ☆

Published on Dec 1, 2008in Journal of Business Research7.55
· DOI :10.1016/J.JBUSRES.2008.01.015
David Martín Ruiz9
Estimated H-index: 9
,
Dwayne D. Gremler32
Estimated H-index: 32
(College of Business Administration)
+ 1 AuthorsGabriel Cepeda Carrión12
Estimated H-index: 12
Sources
Abstract
Recent marketing literature pays particular attention to customer value because of the potential impact on customer behavior and, ultimately, firm performance. Whereas some studies conceptualize customer value in a unidimensional manner, more recent approaches take a multidimensional approach, generally conceptualizing value as composed of various benefits and sacrifices. However, nearly all of these studies consider value components in a reflective manner, which is not only problematic but in many cases conceptually incorrect. In addition, recent customer value research includes service components to define and operationalize the construct. This study suggests that customer value in service contexts, or service value, represents a higher-order, formative construct with benefit and sacrifice components. Specifically, the authors propose a formative model of service value with four components: service quality, service equity, confidence benefits, and perceived sacrifice. A multiple-industry study substantiates the contention that this higher-order, formative approach best models value. The results theoretically and empirically support the conceptualization of service value with formative components, and the measure is robust and works well across multiple service contexts.
📖 Papers frequently viewed together
References67
Newest
#1Adamantios Diamantopoulos (University of Vienna)H-Index: 81
#2Judy A. Siguaw (NTU: Nanyang Technological University)H-Index: 38
A comparison is undertaken between scale development and index construction procedures to trace the implications of adopting a reflective versus formative perspective when creating multi-item measures for organizational research. Focusing on export coordination as an illustrative construct of interest, the results show that the choice of measurement perspective impacts on the content, parsimony and criterion validity of the derived coordination measures. Implications for practising researchers s...
Source
Since the publication of Venkatraman and Grant's (1986) article two decades ago, considerably more attention has been directed at establishing the validity of constructs in the strategy literature. However, recent developments in measurement theory indicate that strategy researchers need to pay additional attention to whether their constructs should be modeled as having formative or reflective indicators. Therefore, the purpose of this chapter is to highlight the differences between formative an...
Source
Purpose – To clarify the nature of the error term in formative measurement models, as it had been misinterpreted in prior research.Design/methodology/approach – The error term in formative measurement models is analytically contrasted with the measurement errors typically found in reflective measurement models.Findings – It is demonstrated that, unlike in reflective measurement, the error term in formative models is not measurement error but rather a disturbance representing non‐modeled causes. ...
Source
Purpose – To analyze the direct effect of perceived value dimensions (monetary, convenience, social, emotional, conditional and epistemic value) on attitudinal and behavioral components of loyalty: commitment and behavioral intentions to use location‐based mobile services.Design/methodology/approach – An online survey for users of a mobile location‐based directory service “Where is the nearest?”Findings – The behavioral intentions were most influenced by conditional value; the context, in which ...
Source
#1Mark Colgate (UVic: University of Victoria)H-Index: 19
#2Margo Buchanan-Oliver (University of Auckland)H-Index: 15
Last. Ross ElmslyH-Index: 1
view all 3 authors...
Purpose – The notion of relationships has been shown to be a worthwhile strategy in many service industries. This coupled with the rapid development of the internet means that it is now possible (and even beneficial) to implement internet based relationship management programs. Given the importance of this issue this paper seeks to understand the relational benefits that consumers receive in an internet environment relative to the benefits consumers receive in a traditional environment i.e. face...
Source
#1Paul Flanagan (Warw.: University of Warwick)H-Index: 1
#2Robert Johnston (Warw.: University of Warwick)H-Index: 49
Last. Derek TalbotH-Index: 1
view all 3 authors...
Purpose – The purpose of this paper is to better understand the concept of “confidence”, to assess its relationship with customer contact and to identify the dimensions and triggers of “confidence” in an important organisation with which many people may have only limited contact.Design/methodology/approach – The research was commissioned by the Northamptonshire Police in the UK and was based on data collected through focus groups held in the area. The groups were split into individuals who had l...
Source
#1Chien-Hsin Lin (NCNU: National Chi Nan University)H-Index: 10
#2Peter J. Sher (NCHU: National Chung Hsing University)H-Index: 11
Last. Hsin-Yu Shih (NCNU: National Chi Nan University)H-Index: 12
view all 3 authors...
Purpose – To propose an alternative model specification for better conceptualizing the definition of a customer perceived value construct, and to discuss the theoretical justification of the model.Design/methodology/approach – The proposed model was elaborated based on theoretical contexts. Three models of different conceptualization specifications were estimated and compared with eTail service value survey data.Findings – Based on theory, perceived value should be conceived as a formative const...
Source
#1Scott B. MacKenzieH-Index: 54
#2Philip M. PodsakoffH-Index: 68
Last. Cheryl Burke Jarvis (ASU: Arizona State University)H-Index: 12
view all 3 authors...
The purpose of this study was to review the distinction between formative- and reflective-indicator measurement models, articulate a set of criteria for deciding whether measures are formative or reflective, illustrate some commonly researched constructs that have formative indicators, empirically test the effects of measurement model misspecification using a Monte Carlo simulation, and recommend new scale development procedures for latent constructs with formative indicators. Results of the Mon...
Source
#1Annie H. Liu (College of Business Administration)H-Index: 12
#2Mark Leach (College of Business Administration)H-Index: 14
Last. Kenneth L. Bernhardt (J. Mack Robinson College of Business)H-Index: 10
view all 3 authors...
Abstract When organizational buyers outsource service from multiple providers, what leads buyers to shift business among current suppliers? In this article, the authors develop and examine a framework of organizational multiple-sourcing behavior proposing that customer value, customer satisfaction, and perceived switching costs influence these share-of-business repurchase decisions. Qualitative and quantitative results show that customer value for business services is multidimensional with three...
Source
#1Michael K. Brady (Florida State University College of Business)H-Index: 30
#2Gary Knight (Florida State University College of Business)H-Index: 37
Last. Bruce D. Keillor (University of Akron)H-Index: 20
view all 6 authors...
Four service evaluation models are identified from the literature that are commonly offered to depict the relationships amongst the primary service evaluation constructs of sacrifice, service quality, service value, satisfaction, and behavioral intentions. We comparatively test the models using samples of service consumers in Australia, Hong Kong, Morocco, the Netherlands, and the United States, as well as across varied temporal and service settings. The results of the comparative analyses revea...
Source
Cited By271
Newest
#1WenBo (UofU: University of Utah)
#2HuPaul Jen-Hwa (UofU: University of Utah)
Last. ChenHsinchun (UA: University of Arizona)
view all 4 authors...
Rich, diverse cybersecurity data are critical for efforts by the intelligence and security informatics (ISI) community. Although open-access data repositories (OADRs) provide tremendous benefits fo...
Source
#2Alan Hartman (University of Haifa)H-Index: 19
#3Iris Reinhartz-Berger (University of Haifa)H-Index: 18
Last. Doron Kliger (University of Haifa)H-Index: 18
view all 4 authors...
Source
#1Jun-Hwa Cheah (UPM: Universiti Putra Malaysia)H-Index: 17
#2José L. Roldán (University of Seville)H-Index: 31
Last. Thurasamy Ramayah (Universiti Sains Malaysia)H-Index: 76
view all 5 authors...
Applications of partial least squares structural equation modelling (PLS-SEM) often draw on survey data. While researchers go to great lengths to document reliability and validity statistics that s...
Source
#1Zhipeng Niu (HIT: Harbin Institute of Technology)
#2Xiaowei Hu (HIT: Harbin Institute of Technology)
Last. Shi An (HIT: Harbin Institute of Technology)
view all 6 authors...
Abstract null null As an emerging technology that does not rely on the construction of several parking facilities and effectively relieves the pressure of urban parking, shared parking is widely promoted. However, users may turn to conventional parking mode because of concerns about the performance of shared parking modes. Therefore, to determine why users change parking mode and to improve the behavior patronage rate of shared parking mode, studying the factors influencing users’ behavior inten...
Source
#2Sigit S. WibowoH-Index: 5
Last. Anya Safira (UI: University of Indonesia)H-Index: 3
view all 3 authors...
The purpose of this study is to examine the impacts of product knowledge, perceived quality, perceived risk and perceived value on customers’ intention to invest in Islamic Banks. This study specifically examines an Islamic bank’s term deposits.,Structural equation modeling was used to analyze the data collected from 217 customers of an Islamic bank in Indonesia using an online survey.,This study highlights the central and dual roles of perceived risk as both the independent and the intervening ...
Source
#1Laura Cristina Henao Colorado (UdeA: University of Antioquia)
#2Juan Fernando Tavera Mesías (UdeA: University of Antioquia)H-Index: 3
Source
#1Anabela de Figueiredo Marcos (Polytechnic Institute of Coimbra)H-Index: 1
Source
#1Janine Williams (Victoria University of Wellington)H-Index: 2
#2Aaron Gazley (AUS: American University of Sharjah)H-Index: 7
Last. Nicholas J. Ashill (AUS: American University of Sharjah)H-Index: 28
view all 3 authors...
Abstract Perceived value among children is an important concept in consumer decisions, yet surprisingly no research has operationalized value for this consumer group. To address this omission, and following the guidelines of DeVellis (2016) , this investigation reports the findings of a seven-stage process to develop a valid and reliable instrument for measuring perceived value among children aged 8–14 years. Value for children is conceptualized as a multidimensional construct capturing percepti...
Source
Source
Express parcel delivery has increased significantly in recent years because of changes in technology and consumer habits, as has the number of express parcel delivery companies and the competitiveness among them. For an express parcel business to be sustainable, it must succeed in increasing customer perceived value (CPV). This study aims to investigate the business-to-business (B2B) performance between companies and their main express parcel service provider. The main objective was to analyze t...
Source
This website uses cookies.
We use cookies to improve your online experience. By continuing to use our website we assume you agree to the placement of these cookies.
To learn more, you can find in our Privacy Policy.