Past progress and future directions in conceptualizing customer perceived value

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.