Incorporating Formative Measures into Covariance-Based Structural Equation Models

Diamantopoulos, Adamantios

doi:10.2307/23044046

Cited by 232 publications

(128 citation statements)

References 77 publications

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“…This approach has several advantages over the alternatives such as variance-based analysis (e.g., PLS). For example, covariance structure analysis accounts for measurement error, presents fit statistics to evaluate overall fit as well as allowing comparisons of alternative models, and provides diagnostic information to improve model specification (Diamantopoulos, 2011). This four-step structure helps us better understand the relationships between the dimensions in the retailer brand equity building process.…”

Section: Resultsmentioning

confidence: 99%

An integrated retailer image and brand equity framework: Re-examining, extending, and restructuring retailer brand equity

Anselmsson

Burt

Tunca

2017

Journal of Retailing and Consumer Services

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Retailers are amongst the world's strongest brands, but little is known about retailer brand equity. In spite of their extensive use, we argue that current operational models are too abstract for understanding the uniqueness of the retail industry and too simplistic to understand the interrelationships among the dimensions in the retailer brand equity building process. This study contributes to the existing and largely generic retailer equity frameworks in three ways: first, by incorporating retail specific dimensions from the retailer image literature; second, by re-examining and developing the structures and relationships between the dimensions of retailer equity by testing alternative structures commonly used in the more general brand equity literature; and finally by creating a short and parsimonious scale for assessing retailer brand equity in different contexts. Three alternative models are compared and tested on six brands in both convenience and shopping goods categories, ranging from discount to middle range price levels. The outcome is an operational framework supporting the main building blocks of the conceptual brand resonance model presented in Keller (2001) with seven dimensions structured in a four-step sequence as awareness → pricing policy, customer service, product quality, physical store → retailer trust → retailer loyalty, thereby describing retailer brand equity as a four-step process. The extended, although parsimonious, 17-item retailer equity scale can be used by academics as well as practitioners to examine the underlying values of retailer brands and has the potential to incorporate additional dimensions and attributes to investigate specific retail contexts without creating lengthy questionnaires.

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Section: Resultsmentioning

confidence: 99%

An integrated retailer image and brand equity framework: Re-examining, extending, and restructuring retailer brand equity

Anselmsson

Burt

Tunca

2017

Journal of Retailing and Consumer Services

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“…Based on previous discussions, cross-loadings for reflective indicators are similar to direct effects which cannot be mediated by the latent variable from a formative measurement model (Figure 4 and 5). When the latent variable measured with causal indicators cannot mediate the relationship between certain causal indicators and outcome variables, these corresponding indicators are problematic (Diamantopoulos, 2011;MacKenzie et al, 2011). Our method can detect these indicators and warn researchers that their measurement models are not be supported.…”

Section: Discussionmentioning

confidence: 99%

Convergent and Discriminant Validity with Formative Measurement: A Mediator Perspective

Wang

French

Clay

2015

J. Mod. App. Stat. Meth.

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“…To give a simple example, you do not need to drink a few liters of beer as well as wine at the same time to achieve a latent state of drunkenness-one of them will suffice. Unfortunately, formative measures require a solid conceptual framework, ensuring that all theoretically derived relevant "forming" indicators are included [39].…”

Section: Methodological Conceptmentioning

confidence: 99%

Predicting Brand Perception for Fast Food Market Entry

Teichert¹,

Effertz²,

Tsoi³

et al. 2015

TEL

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We present a combined and integrative market research approach to address common, but potentially neglected problems resulting from consumers' perceptions towards food brands. Our findings provide improved response measures and guidance for market entry strategies of established and novel food brands. Two knowledge sources and methods are combined to derive a model of brand perception: experts' opinions are elicited using the Analytic Hierarchy Process (AHP) to generate an overall causal effects framework for food brands. Complementary hereto, a survey of potential consumers retrieves consumers' perceptions regarding market entry scenarios of different food brands. A remote metropolitan area (Novosibirsk) was chosen as quasi-laboratory setting to simulate the market introduction of alternative fast food brands. Insights are gained about the interdependence of branding and advertisement effects. As expected, consumers' attitudes towards the brand and towards the ad are the key success factors for any type of brand. Different responses depend on consumers' expectations towards novel or established brands. Otherwise, the paper provides a proof of concept to integrate AHP and experts' assessments with consumer surveys. Findings indicate a large potential to join external and internal perspectives for obtaining more valid market assessments before the real market entry. Managers might need to enhance their model of assessed consumer perceptions with expert opinion before entering a market in order to align their advertising accordingly. Global and local brands face distinctively different market entry barriers. Novel global brands constitute a promising alternative for a food company wishing to enter a new market. Managers need to decide whether a combined specific approach is necessary and eventually incorporate it in case of new foods brands. A novel method is introduced to assess market perceptions of food brands before the latter actually enter the market. A combined approach incorporates expert opinions to enhance incomplete consumer information. Findings indicate strong interaction effects between brand and advertisement related factors which in turn strongly influence consumers' perceptions.

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Incorporating Formative Measures into Covariance-Based Structural Equation Models

Cited by 232 publications

References 77 publications

An integrated retailer image and brand equity framework: Re-examining, extending, and restructuring retailer brand equity

An integrated retailer image and brand equity framework: Re-examining, extending, and restructuring retailer brand equity

Convergent and Discriminant Validity with Formative Measurement: A Mediator Perspective

Predicting Brand Perception for Fast Food Market Entry

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