Roy D. Howell

The Performance of ML, GLS, and WLS Estimation in Structural Equation Modeling Under Conditions of Misspecification and Nonnormality

This simulation study demonstrates how the choice of estimation method affects indexes of fit and parameter bias for different sample sizes when nested models vary in terms of specification error and the data demonstrate different levels of kurtosis. Using a fully crossed design, data were generated for 11 conditions of peakedness, 3 conditions of misspecification, and 5 different sample sizes. Three estimation methods (maximum likelihood [ML], generalized least squares [GLS], and weighted least squares [WLS]) were compared in terms of overall fit and the discrepancy between estimated parameter values and the true parameter values used to generate the data. Consistent with earlier findings, the results show that ML compared to GLS under conditions of misspecification provides more realistic indexes of overall fit and less biased parameter values for paths that overlap with the true model. However, despite recommendations found in the literature that WLS should be used when data are not normally distributed, we find that WLS under no conditions was preferable to the 2 other estimation procedures in terms of parameter bias and fit. In fact, only for large sample sizes (N = 1,000 and 2,000) and mildly misspecified models did WLS provide estimates and fit indexes close to the ones obtained for ML and GLS. For wrongly specified models WLS tended to give unreliable estimates and over-optimistic values of fit.

The Quality and Effectiveness of Marketing Strategy: Effects of Functional and Dysfunctional Conflict in lntraorganizational Relationships

By examining only dysfunctional conflict and ignoring functional conflict, empirical research in marketing has presented only part of the story. This research offers the first systematic look at the antecedents and consequences of both functionaland dysfunctional conflict in intraorganiational relationships. The authors develop and empirically test a causal model for key organizational antecedents of new product strategy quality and market performance. They find that dysfunctional conflict in the decision-making process has deleterious consequences for quality of strategy and market performance, whereas functional conflict improves both quality of strategy and performance. Specifically, organizational design characteristics such as formalization, interdepartmental interconnectedness, low communication barriers, and team spirit improve new product performance by enhancing functional conflict, whereas centralization and high communication barriers lower new product performance by increasing dysfunctional conflict. A post hoc test for common method bias or variance suggests that bias or variance alone cannot explain these findings.

Reconsidering formative measurement.

The relationship between observable responses and the latent constructs they are purported to measure has received considerable attention recently, with particular focus on what has become known as formative measurement. This alternative to reflective measurement in the area of theory-testing research is examined in the context of the potential for interpretational confounding and a constructs ability to function as a point variable within a larger model. Although these issues have been addressed in the traditional reflective measurement context, the authors suggest that they are particularly relevant in evaluating formative measurement models. On the basis of this analysis, the authors conclude that formative measurement is not an equally attractive alternative to reflective measurement and that whenever possible, in developing new measures or choosing among alternative existing measures, researchers should opt for reflective measurement. In addition, the authors provide guidelines for researchers dealing with existing formative measures.

On the Meaning and Measurement of Religiosity in Consumer Research

The role of religiousness as a variable in models of consumer behavior is not well-established. Research findings in this area tend to be sparse and conflicting, and measurement issues have yet to be addressed. This article reports on an empirical investigation of religiosity in a causal modeling framework. The results suggest that religiosity is a viable consumer behavior construct in that it (1) did correlate with the life-style variables selected; (2) contributed directly to the model along with sex, age, and income; and (3) was successfully operationalized through multiple measures.

An integrated model of sales managers’ communication practices

Drawing from several diverse streams of research, the authors develop the rationale and empirical background for considering the role of sales manager communication practices. Using a multifaceted conceptualization of communication as its base, the study justifies, proposes, and evaluates a model describing the relations among sales managers’ communication practices and salesperson ambiguity, satisfaction, performance, and commitment. The results support the hypothesized model and suggest that sales manager communication practices are associated with these important salesperson job outcomes.

Is Formative Measurement Really Measurement? Reply to Bollen (2007) and Bagozzi (2007)

R. D. Howell, E. Breivik, and J. B. Wilcox (2007) examined the use of formative measurement models in theory testing in the social sciences. K. A. Bollen (2007) and R. P. Bagozzi (2007) have provided comments on this work. In this article, the authors reply to the commentators and suggest that the conclusions reached in the original article and the basis for those conclusions remain sound. They address the issue of misspecification raised by Bollen (2007) and the alternative to their realist philosophy of measurement offered by Bagozzi (2007). They conclude that misspecification as construed by Bollen (2007) will typically be undetectable in practice and cannot be distinguished from interpretational confounding. This can result in substantively different constructs retaining the same name from study to study, hindering the accumulation of knowledge. They further conclude that traditional reflective measurement is a better option for researchers in theory testing.

Self-esteem, role stress, and job satisfaction among marketing managers

Abstract The relationship of self-esteem, role stress, and job satisfaction among sales and advertising managers is examined. Role stress is shown to be inversely related to job satisfaction for both groups. High self-esteem was found to lessen the role stress felt by the manager, thereby indirectly affecting job satisfaction. Self-esteem, however, did not relate to job satisfaction directly nor did it moderate the relationship between role stress and job satisfaction.

Avoiding measurement dogma: a response to Rossiter

Purpose – This paper aims to respond to John Rossiters call for a “Marketing measurement revolution” in the current issue of EJM, as well as providing broader comment on Rossiters C-OAR-SE framework, and measurement practice in marketing in general. Design/methodology/approach – The paper is purely theoretical, based on interpretation of measurement theory. Findings – The authors find that much of Rossiters diagnosis of the problems facing measurement practice in marketing and social science is highly relevant. However, the authors find themselves opposed to the revolution advocated by Rossiter. Research limitations/implications – The paper presents a comment based on interpretation of measurement theory and observation of practices in marketing and social science. As such, the interpretation is itself open to disagreement. Practical implications – There are implications for those outside academia who wish to use measures derived from academic work as well as to derive their own measures of key marketing and other social variables. Originality/value – This paper is one of the few to explicitly respond to the C-OAR-SE framework proposed by Rossiter, and presents a number of points critical to good measurement theory and practice, which appear to remain underdeveloped in marketing and social science.

Unauthorized channels of distribution: Gray markets

Abstract This article examines the process by which the use of price-quantity discounts facilitates the formation of gray markets—alternative channels of distribution outside the control of the manufacturer. Some of the tactics commonly used to combat gray markets are discussed, and a revision of current quantity—discount pricing practices is called for as the most effective means of controlling the gray-market problem.

Ethics and the American Advertising Federation Principles

Much has been written about ethical issues in the advertising industry. The purpose of this study was to examine the effectiveness of recent American Advertising Federation principles that provide ethical guidelines to the industry. Two research questions were examined: (1) ‘To what extent does advertising conform to the principles proposed by the American Advertising Federation?’ and (2) ‘Is conformity with the AAF principles within advertising agencies related to the actions of top management in those agencies?’ A mail survey of advertising professionals at various organizational levels formed the data base.