Used to build measurement model, thus, the effects of measurement errors are lessened through multiple indicators for a construct (factor or latent variable). Confirmatory factor analysis is more restrictive form of exploratory factor analysis (EFA). EFA has some assumptions such that all factors to be loaded on all observed variables (indicators, items, or measures), all factors to be correlated or uncorrelated and, error terms to be uncorrelated. These assumptions are required for EFA estimation but they are not fair. In CFA, the parameters supported by the underlying theory are estimated and investigated rather than the required but arbitrary parameters in EFA.
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)
Copyright: © 2015
|Pages: 26
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.