Causal-formative indicators directly affect their corresponding latent variable. They run counter to the predominant view that indicators depend on latent variables and are thus often controversial. ...If present, such indicators have serious implications for factor analysis, reliability theory, item response theory, structural equation models, and most measurement approaches that are based on reflective or effect indicators. Psychological Methods has published a number of influential articles on causal and formative indicators as well as launching the first major backlash against them. This article examines 7 common criticisms of these indicators distilled from the literature: (a) A construct measured with "formative" indicators does not exist independently of its indicators; (b) Such indicators are causes rather than measures; (c) They imply multiple dimensions to a construct and this is a liability; (d) They are assumed to be error-free, which is unrealistic; (e) They are inherently subject to interpretational confounding; (f) They fail proportionality constraints; and (g) Their coefficients should be set in advance and not estimated. We summarize each of these criticisms and point out the flaws in the logic and evidence marshaled in their support. The most common problems are not distinguishing between what we call causal-formative and composite-formative indicators, tautological fallacies, and highlighting issues that are common to all indicators, but presenting them as special problems of causal-formative indicators. We conclude that measurement theory needs (a) to incorporate these types of indicators, and (b) to better understand their similarities to and differences from traditional indicators.
This paper integrates country-of-origin and global/local branding literatures to investigate how country- and brand-specific factors influence consumer preferences. Drawing from the stereotype ...content model (SCM) in social psychology, it operationalizes country perceptions by means of warmth and competence judgments and juxtaposes them with consumers' perceptions of brand globalness and localness to predict brand attitudes and subsequent purchase intentions. An empirical study involving a series of well-known brands from different countries and product categories shows that (a) the SCM can effectively capture country-of-origin effects, (b) judgments of competence impact consumer preferences above and beyond the positive effects of brand globalness and localness, and (c) country stereotypes (particularly the dimension of warmth) interact with perceptions of brand globalness in determining brand attitude, whereas perceived brand localness has an independent effect. Theoretical and managerial implications of the findings are discussed and directions for future research identified.
In contrast to the abundance of research on brand- and consumer-related determinants of global/local brand preference, little is known about whether and how the product category affects consumer ...choices between local and global brands. Drawing from schema theory, the authors (1) argue that consumers rely on their product category schemata to form perceptions of global versus local brand superiority, (2) introduce a compact scale to measure these perceptions, and (3) identify the key antecedents and consequences of these perceptions. Two studies in developed and emerging markets empirically support the hypotheses across multiple product categories, for both real and fictitious brands. The results indicate that consumers perceive global brands as superior to local brands in product categories with strong functional character and extensive symbolic capacity. Moreover, brands congruent with category superiority perceptions are preferred because of their justifiability, while brands that deviate from these perceptions are avoided because of their proneness to normative criticism. The findings imply that global/local brand preference is largely formed at the product category level and advocate for the use of category-specific strategies in global/local brand management.
Consumers' preferences for domestic over imported products have been investigated in various isolated studies, but never in a single model incorporating several in-group and out-group consumer ...orientations at the same time. Building on social identity theory, this study develops and tests—in two countries—a conceptual model that assesses the relative influence of consumer ethnocentrism, national identity, and consumer cosmopolitanism on consumers' product judgments and willingness to buy domestic and foreign products. Furthermore, the study develops an empirically based typology of consumer segments using these sociopsychological traits and subsequently profiles them on consumptionrelevant variables. The findings reveal several undiscovered patterns regarding the interplay of consumer ethnocentrism, national identity, and consumer cosmopolitanism as drivers of consumer behavior and offer managerial guidance on their relevance as segmentation variables.
Research has long established the existence of a global brand halo that benefits global brands by triggering “global equals better” inferences by consumers. Nevertheless, little is known about the ...conditions under which this halo may or may not be used or about whether and, if so, how it can situationally fade. Drawing from regret theory, the authors posit that anticipating regret can conditionally both attenuate and accentuate consumers’ use of the global brand halo and develop a serial conditional process model to explain the mechanism underlying regret’s influence. The results of two experimental studies show that anticipated regret affects global brand halo use—and subsequently relative preference for global or local brands—by increasing consumers’ need to justify their purchase decision. Whether and how consumers will use the global brand halo depends on consumers’ product category schema, while the intensity of the halo’s use depends on consumers’ maximization tendency. The findings offer a decision-theory perspective on the competition between global and local brands and empirically based advice on managerial interventions that can influence global or local brand market shares.
A comparison is undertaken between scale development and index construction procedures to trace the implications of adopting a reflective versus formative perspective when creating multi‐item ...measures for organizational research. Focusing on export coordination as an illustrative construct of interest, the results show that the choice of measurement perspective impacts on the content, parsimony and criterion validity of the derived coordination measures. Implications for practising researchers seeking to develop multi‐item measures of organizational constructs are considered.
International marketing research has shown vivid interest in consumers' positive dispositions toward foreign countries and globalization. Motivated by the aim to segment international consumer ...markets, the literature has introduced and adopted a plethora of constructs and measurement instruments to capture such dispositions. However, the current state of literature is problematic because of an unsorted range of constructs with overlapping conceptualizations, diverse operationalizations, and fragmented empirical findings regarding the impact of these constructs on consumer responses. Consequently, making an informed choice on which construct(s) to employ in substantive research (and why) is extremely difficult. This article aims to advance the international marketing literature by (1) developing a conceptual taxonomy of constructs of positive consumer dispositions that highlights their similarities and unique features; (2) undertaking a comprehensive review of the relevant conceptualizations and operationalizations; and (3) providing guidance for further research on positive dispositions, including antecedents, response variables, and potential mediating and moderating influences. To move substantive research in this field further, this article also proposes a research framework that comprises antecedents, causal sequences of dispositions, effects on consumer response variables, and potential boundary conditions.
Single-item measures have recently become more en vogue due to studies arguing in favor of their psychometric properties vis-à-vis multi-item scales. However, their effective use requires (1) expert ...raters to designate the focal construct as being doubly concrete and (2) researchers to find a good single item to represent the construct. This study examines whether expert raters identify the doubly concrete nature of constructs that prior research presents as exemplary in this respect. Furthermore, the study compares the efficacy of a broad range of selection mechanisms based on expert judgment and statistical criteria for identifying the best item in a scale. The results show that expert raters do not share the commonly held belief that researchers can validly measure constructs such as attitude toward the ad, or brand, with single items. Further analyses show that neither rater assessments nor statistical criteria prove valuable regarding identifying an appropriate single item from a set of candidate items.
Mounting empirical evidence shows that consumers often associate brands with the wrong country of origin (COO) or are unable to classify a brand to any COO. In this study, the authors investigate the ...consequences of brand origin misclassification and nonclassification on consumers' brand image evaluations and associated purchase intentions. Drawing from categorization theory, the authors test hypotheses regarding the impact of brand strength and COO image on misclassification gains and losses on a sample of U.K. consumers. The results show that both misclassification and nonclassification have mostly adverse consequences on both brand evaluations and purchase intentions. The findings further show that strong brands are not immune to misclassification and stress the importance of ensuring that consumers are aware of a brand's true COO.
Extant marketing literature mainly focuses on explaining why consumers might prefer domestic products and refrain from buying foreign products but, however, is weak in explaining why consumers might ...intentionally opt for foreign products. Against this background, consumer cosmopolitanism has gained increasing attention as a potentially relevant consumer characteristic for explaining foreign product preference and choice. However, empirical evidence on the impact of consumer cosmopolitanism on consumption behavior remains scarce. This paper identifies the absence of an appropriate measurement instrument as a main reason for this lack of empirical studies by providing (a) a review of cosmopolitanism scales used in other research fields, and (b) a replication with extensions study of the CYMYC scale, the only consumer cosmopolitanism scale currently available. The findings highlight a need for a new scale to measure the consumer cosmopolitanism construct. To stimulate further research in this direction, the paper proposes a conceptual definition of consumer cosmopolitanism along with a nomological network to guide the scale development process.
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