Index of Paper Presentations for the Parallel Sessions - Academy of ...

Model 2 - Formative Second Order Factor ModelAccording to Jarvis et al. (2003, pp.203), it is conceptually preferable to use reflective indicators if the direction ofcausality ―flows from the construct to the measures‖ and formative indicators if the direction is in the oppositedirection ―from the measures to the construct‖. In the case of store environment, the perceptions of ambient, socialand design factors drive overall perceptions of store environment rather than the other way round.Specifically, shoppers may evaluate a store‘s ambient factors (e.g. if the music is nice in the store), social factors(e.g. the store employees are friendly) and design factors (e.g. the layout is good). Based on these perceptions, theymay form an overall impression of the store‘s environment. It is unlikely that a shopper would first overall form apositive impression of the store and then because of this, conclude that its music was nice. Hence, in this case aformative second order model structure (Figure 3) may be appropriate.