ABSTRACT
Chapter 10 discusses structural equation modeling, which deals with the relationships between latent variables. It contains two models: the measurement model, which examines the factor solution, as in CFA, and the structural model, which measures the relationships between the factors (constructs), as in multiple regression. Examples of SEM applications are manifold; it is possible to measure how satisfaction and perceived value influence loyalty, how service failure and service recovery influence switching intention, and how loyalty influences cooperation and resilience, among many others. The chapter presents the steps to construct the model, perform the analysis, and interpret the results. Furthermore, it includes the approaches to increase model fit. The technique is illustrated with theoretical description, followed by an example with the AMOS commands and the results tables with comments. The chapter also includes exercises, such as a road map to perform the analysis, an interpretative exercise with results tables, and a market context to guide a research design.
