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What is Composite Reliability

Handbook of Research on Developing Sustainable Value in Economics, Finance, and Marketing
Composite reliability (CR), ? , which has been also referred to as McDonald’s ? coefficient, is obtained by combining all of the true score variances and covariances in the composite of indicator variables related to constructs, and by dividing this sum by the total variance in the composite.
Published in Chapter:
Understanding the Antecedents of Customer Loyalty by Applying Structural Equation Modeling
Gülhayat Gölbaşı Şimşek (Yıldız Technical University, Turkey) and Fatma Noyan Tekeli (Yıldız Technical University, Turkey)
DOI: 10.4018/978-1-4666-6635-1.ch025
Abstract
The objective of this chapter is to form a model of customer loyalty for supermarkets in the Turkish retailing sector, which investigates the extent to which customer loyalty is influenced by customer perceptions of service quality, customer perceptions of product quality, comparative price perceptions, discount perceptions, value perceptions, and customer satisfaction. Structural equation modeling has been used to analyze the data collected from 1530 customers of four major supermarket chains in Turkey. After building a measurement model for customer loyalty and its potential antecedents, the relationships are examined. The direct effects of customer satisfaction, comparative price perceptions, and discount perceptions on customer loyalty; value perceptions, comparative price perceptions, and service quality perceptions on customer satisfaction; comparative price perceptions, discount perceptions, product quality perceptions, and service quality perceptions on value perceptions; and discount perceptions and service quality perceptions on product quality perceptions are empirically supported.
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The Relationship Between Performance Measures and Overall Performance in the Manufacturing Environment
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