A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research
Cheryl Burke Jarvis, Scott B. MacKenzie, Philip M. Podsakoff
Journal of Consumer Research · 2003 · Volume 30 · Issue 2
Abstract
A review of the literature suggests that few studies use formative indicator measurement models, even though they should. Therefore, the purpose of this research is to ( a ) discuss the distinction between formative and reflective measurement models, ( b ) develop a set of conceptual criteria that can be used to determine whether a construct should be modeled as having formative or reflective indicators, ( c ) review the marketing literature to obtain an estimate of the extent of measurement model misspecification in the field, ( d ) estimate the extent to which measurement model misspecification biases estimates of the relationships between constructs using a Monte Carlo simulation, and ( e ) provide recommendations for modeling formative indicator constructs.
Keywords
Theory Construction/Testing, Causal Modeling, Factor Analysis, Literature Review, Simulation
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