Past progress and future directions in conceptualizing customer perceived value

Purpose To propose an alternative model specification for better conceptualizing the definition of a customer perceived value construct, and to discuss the theoretical justification of the model. Design/methodology/approach The proposed model was elaborated based on theoretical contexts. Three models of different conceptualization specifications were estimated and compared with eTail service value survey data. Findings Based on theory, perceived value should be conceived as a formative construct. The empirical results demonstrated different parameter estimates and thus conclusions are drawn from different conceptualization methods. Research limitations/implications Future research is suggested to apply the proposed formative value model in other marketing settings, and to explore the role of consumer satisfaction in post‐purchase behavior. Practical implications Marketing resources allocation and communication programs may be influenced due to different conceptualization methods of value construct applied by practitioners. Originality/value This paper provides a theoretical rationale for conceptualizing perceived value with formative specification. It stresses that the theoretical justification is a major concern for determining conceptualization models.