This article illustrates the common use of difference scores in consumer research and discusses a number of potential problems with using them. Difference scores often have problems in the areas of reliability, discriminant validity, spurious correlations, and variance restriction. The article concludes that difference scores should generally not be used in consumer research and offers alternatives that overcome their limitations. D ifference scores are often used as measures of constructs in consumer research. A difference score involves the subtraction of one measure from another to create a measure of a distinct construct, for example, subtracting expectations from perceptions to create a measure of perceived service quality. I As shown in Table 1, difference scores have been used in at least five areas of consumer and marketing research, including satisfaction, service quality, price perceptions, decision making, and organizational buying and selling. 2 A number of potential problems with the use of difference scores can cause them to perform poorly as measures of constructs. These problems are well-known in the psychometric literature (e.g., Cronbach and Furby 1970;Lord 1958;Mosier 1951;Wall and Payne 1973). However, consumer researchers generally seem to be unaware of them, given the frequency with which difference scores are used and new difference score measures are proposed. The purpose of this article is to illustrate and explain these problems so that consumer researchers may consider them when developing new measures. In addition, we discuss two alternative approaches that eliminate the need to use difference scores in many situations.This article is divided into two sections. First, it briefly reviews the problems that can arise when using difference scores. These problems are illustrated with the examples shown in Table 1 from the consumer behavior and marketing literature. In the second section, the article proposes alternative approaches that overcome