Past progress and future directions in conceptualizing customer perceived value

TLDR

The study proposes an alternative model specification to better conceptualize customer perceived value and provides a theoretical rationale for adopting a formative construct. The authors developed three alternative conceptualization models, grounded in theory, and compared them using eTail service value survey data. Empirical analysis shows that perceived value should be treated as a formative construct, and that different conceptualization methods produce distinct parameter estimates, affecting marketing resource allocation and underscoring the importance of theoretical justification. Future research should apply the formative value model in other marketing contexts and examine consumer satisfaction’s role in post‑purchase behavior.

Abstract

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 construct. The empirical results demonstrated different parameter estimates and thus conclusions are drawn from different conceptualization methods. Research limitations/implications Future research is suggested to apply the proposed formative value model in other marketing settings, and to explore the role of consumer satisfaction in post‐purchase behavior. Practical implications Marketing resources allocation and communication programs may be influenced due to different conceptualization methods of value construct applied by practitioners. Originality/value This paper provides a theoretical rationale for conceptualizing perceived value with formative specification. It stresses that the theoretical justification is a major concern for determining conceptualization models.