Second-Order Constructs in Structural Equations: Perceived Value and Trust

Structural equations are extensively used in studies dealing with abstract variables. The authors can choose between first and higher-order constructs but some researchers omit to pursue a rigorous method. Therefore, it is important to know: when is the higher-order construct preferred to the first-order one? In this study, the authors have illustrated this procedure for perceived value and trust. They collected data with students, inviting them to navigate in a website and to fill-in a questionnaire. Results show the superiority of the second-order reflective model for perceived value and trust. The decision is taken relying on theoretical and empirical justifications. The authors have also proven the predictive ability of their variables by confirming their positive relationship with commitment. The latter predicts behavioral intentions. Second-order reflective constructs invite managers to pay attention to all the first-order factors because a negative perception of one of the factors contributes to the deterioration of the second-order construct.