An investigation into the validity of measures for variation in consumption used in economics and marketing1

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Abstract
Measures that purport to represent variation in consumption have been put forward without adequate investigation into their validity, thus hampering a direct comparison of results obtained in empirical studies on this subject. The paper discusses measures for variation in consumption that have been proposed scattered through the economics and marketing literature, and investigates their validity with LISREL. Two subsets of measures are identified, relating to variation at the product level and variation at the attribute level, respectively. High reliability and convergent validity is achieved within each of the two subsets of measures, and discriminant validity is found between the two sets.

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