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Capturing Heterogeneity in Customer Satisfaction Models: A finite Mixture PLS Approach
Journal
Schmalenbach Business Review
ISSN
1439-2917
Type
journal article
Date Issued
2002-07-01
Author(s)
Abstract
An approach for capturing unobserved customer heterogeneity in structural equation modeling is proposed based on partial least squares. The method uses a modified finite-mixture distribution approach. An empirical analysis using quality, customer satisfaction and loyalty data for convenience stores illustrates the advantages of the new method vis-à-vis a traditional market segmentation scheme based on well known grouping variables. The results confirm the assumption of heterogeneity in the individuals' perception of the antecedents and consequences of satisfaction and their relationships. The results also illustrate how the finite-mixture approach complements and provides insights over and above a traditional segmentation scheme.
Language
English
HSG Classification
not classified
Refereed
No
Publisher
Verl.-Gruppe Handelsblatt
Publisher place
Düsseldorf
Volume
54
Number
3
Start page
243
End page
269
Pages
27
Subject(s)
Division(s)
Eprints ID
2902