Past progress and future directions in conceptualizing customer perceived value

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.