Second-Order Constructs in Structural Equations: Perceived Value and Trust

Second-Order Constructs in Structural Equations: Perceived Value and Trust

Manel Khadraoui (University of Jendouba, Jendouba, Tunisia) and Jamel-Eddine Gharbi (Institute of Advance Business Studies, Montreal, QC, Canada)
Copyright: © 2012 |Pages: 27
DOI: 10.4018/ijom.2012100102
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Abstract

Structural equations are extensively used in studies dealing with abstract variables. The authors can choose between first and higher-order constructs but some researchers omit to pursue a rigorous method. Therefore, it is important to know: when is the higher-order construct preferred to the first-order one? In this study, the authors have illustrated this procedure for perceived value and trust. They collected data with students, inviting them to navigate in a website and to fill-in a questionnaire. Results show the superiority of the second-order reflective model for perceived value and trust. The decision is taken relying on theoretical and empirical justifications. The authors have also proven the predictive ability of their variables by confirming their positive relationship with commitment. The latter predicts behavioral intentions. Second-order reflective constructs invite managers to pay attention to all the first-order factors because a negative perception of one of the factors contributes to the deterioration of the second-order construct.
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Perceived Value

Perceived value is chosen because of its importance in marketing and the magnitude of the debate regarding its dimensionality. The conception of perceived value according to the PxOxS paradigm considers that the experience of consumption is an interaction between a ‘Person,’ an ‘Object,’ and a ‘Situation’ or a context of consumption. This is in concordance with the experiential approach. In this vein, Holbrook (1999, p. 5) defines perceived value as: “an interactive relativistic preference experience.” Hirschman and Holbrook (1982) have promoted the multidimensional view of perceived value coupling the utilitarian and hedonic dimensions. Holbrook (1999) has proposed a typology of consumer value by considering three axes: extrinsic vs. intrinsic, active vs. reactive and self-oriented vs. other oriented. This is the conception to be adopted in this research. But it was not subject of many operationalizations. The work of Mathwick et al. (2001) is considered as the first step in the development of a measurement scale. However, this scale considers only the first two axes of Holbrook’s typology (extrinsic vs. intrinsic and active vs. reactive). In spite of the importance of the social dimension in shopping, we accept in the context of this study to restrict the dimensions of perceived value to self-oriented ones.

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