Extensions on the conceptualization of customer perceived value: insights from the airline industry

Following the conceptual and methodological discussion raised by Lin, Sher, and Shih (2005) this study compares three different and still controversial approaches how to conceive perceived value: as a multi-dimensional second-order formative construct, as a multi-dimensional second-order reflective construct, or as a unidimensional construct. It extends the previous work by enriching both value drivers: the ‘give’ and the ‘get’ components. The data from an in-flight survey of a European network carrier acts as the empirical basis for testing the proposed three alternative conceptual models. The theoretical discussion repeats to emphasize that only the formative modelling of perceived value fits best into the arguments put forward in the existing literature. Considering the model fit to the sample data from the airline sector, this preference can be supported empirically. More details about the impact of the proposed seven ‘get’ and ‘give’ components are reported together with an analysis of the consequences perceived value entails on satisfaction, loyalty and word-of-mouth.