Discriminant validity of the customer-based corporate reputation scale: some causes for concern

Abstract

Purpose

This study aims to reexamine the discriminant validity of the customer-based corporate reputation (CBR) scale in both its original and short forms.

Design/methodology/approach

The authors used data from end-use customers in two countries and two service industries. Results obtained in partial least squares structural equation modeling for the heterotrait–monotrait (HTMT)-based inference test and the Fornell and Larcker criterion were compared to make judgements about the empirical distinctiveness of the CBR scale’s five dimensions.

Findings

This study’s findings demonstrate that the CBR scale in both its original and short forms lacks discriminant validity when using the HTMT-based inference test. Conversely, the discriminant validity of the five corporate reputation dimensions is generally supported when using the more liberal Fornell and Larcker criterion.

Research limitations/implications

Future studies using the CBR scale in either the original or its short form should rely on the more stringent HTMT criterion to ensure the discriminant validity of the scale’s five dimensions.

Originality/value

By addressing recent findings regarding the HTMT criterion’s superiority in uncovering discriminant validity issues compared to that of the Fornell and Larcker criterion, this study is the first, to the best of the authors’ knowledge, to reexamine the discriminant validity of the well-known CBR scale.

Citation

Radomir, L. and Moisescu, O.I. (2020), "Discriminant validity of the customer-based corporate reputation scale: some causes for concern", Journal of Product & Brand Management, Vol. 29 No. 4, pp. 457-469. https://doi.org/10.1108/JPBM-11-2018-2115