“…specifications, they build a convincing argument that the answer with respect to observed measures depends on how the researcher conceptualizes the measured construct. In particular, they point out that Gaski and Nevin's (1985) indicators of coercive power and Kohli, Jaworski, and Kumar's (1993) market orientation measures could be either formative or reflective, depending on the way the researchers conceptualize them and notwithstanding the arguments that later articles in the special issue make for conceptualizations that would lead to formative specification (Cadogan, Souchon, and Procter, 2008;Coltman, Devinney, Midgley, and Venaik, 2008 Bruhn, Georgi, and Hadwich (2008) describe an empirical study of customer equity management (CEM) and provide an illustration of the points made in paragraphs above. The paper's study clearly and logically conceptualizes CEM and formatively specifies it as the second order outcome of three dimensions, CE analysis, CE strategy, and CE actions.…”