Assessing the value of commonly used methods for measuring customer value: a multi-setting empirical study

Sara Leroi-Werelds, Sandra Streukens, Michael K. Brady, Gilbert Swinnen

Journal of the Academy of Marketing Science · 2014 · Volume 42 · Issue 4

Abstract

Despite the importance of customer value, considerable divergence of opinion exists on how to adequately conceptualize and measure this construct. In this study, four commonly used methods for measuring customer value (i.e., the methods proposed by Dodds et al. (1991), Gale (1994), Holbrook (1999) and Woodruff and Gardial (1996)) are compared. First and foremost, the psychometric properties of the different methods are evaluated. Next, the authors compare the predictive ability of the different methods with respect to key outcome variables (i.e., satisfaction, word of mouth, repurchase intention). Finally, the methods are compared based on their relative practicality and actionability. The authors’ findings show that each method has its own benefits and costs and should be used based on its suitability for a particular application. The paper culminates with a prescriptive flowchart that summarizes the main findings and provides direction for choosing the optimal value measurement method.

Keywords

Customer value, Perceived value, Measurement methods, Comparison

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