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Reframing Customer Value in a Service-Based Paradigm: An Evaluation of a Formative Measure in a Multi-industry, Cross-cultural Context

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Handbook of Partial Least Squares

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Abstract

Customer value has received much attention in the recent marketing literature, but relatively little research has specifically focused on inclusion of service components when defining and operationalizing customer value. The purpose of this study is to gain a deeper understanding of customer value by examining several service elements, namely service quality, service equity, and relational benefits, as well as perceived sacrifice, in customer assessments of value. A multiple industry, cross-cultural setting is used to substantiate our inclusion of service components and to examine whether customer value is best modeled using formative or reflective measures. Our results suggest conceptualizing customer value with service components can be supported empirically, the use of formative components of service value can be supported both theoretically and empirically and is superior to a reflective operationalization of the construct, and that our measure is a robust one that works well across multiple service contexts and cultures.

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Authors and Affiliations

  1. Escuela Universitaria de Estudios Empresariales, 41012, Sevilla, Spain

    David Martín Ruiz

  2. Department of Marketing, College of Business Administration, Bowling Green State University, Bowling Green, OH, 43403, USA

    Dwayne D. Gremler

  3. John H. Sykes College of Business, University of Tampa, 401 W. Kennedy Blvd., UT Box 48F, Tampa, FL, 33606, USA

    Judith H. Washburn

  4. Departamento de Administración de Empresas y Marketing, Universidad de Sevilla, Ramón y Cajal, 1, 41018, Sevilla, Spain

    Gabriel Cepeda Carrión

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  1. David Martín Ruiz
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  2. Dwayne D. Gremler
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  3. Judith H. Washburn
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  4. Gabriel Cepeda Carrión
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Correspondence to David Martín Ruiz .

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Editors and Affiliations

  1. Dept. Inf. Systems & Decision Sciences, ESSEC Business School of Paris, av. Bernard Hirsch, Cergy Pontoise CX, 95021, France

    Vincenzo Esposito Vinzi

  2. Bauer College of Business, University of Houston, Houston, 77204-6282, U.S.A.

    Wynne W. Chin

  3. Nijmegen School of Management, Radboud University, Nijmegen, Netherlands

    Jörg Henseler

  4. School of Economics & Management, BeiHang University, XueYuan Road 37, Beijing, 100083, China, People's Republic

    Huiwen Wang

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Ruiz, D.M., Gremler, D.D., Washburn, J.H., Carrión, G.C. (2010). Reframing Customer Value in a Service-Based Paradigm: An Evaluation of a Formative Measure in a Multi-industry, Cross-cultural Context. In: Esposito Vinzi, V., Chin, W., Henseler, J., Wang, H. (eds) Handbook of Partial Least Squares. Springer Handbooks of Computational Statistics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-32827-8_24

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