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To assess construct collinearity, run the extended reputation model and open
the default report by going to Menu Report Default Report. Next, you
need to extract the latent variable scores from the default report, which you can
find under PLS Calculation Results Latent Variable Scores. The scores
are shown on this slide. Copy these scores to an SPSS file to run this analysis
(right click to highlight scores, left click to copy, then paste in SPSS).
Using the SPSS linear regression option, the following sets of (predictor)
constructs are run to assess collinearity: (1) ATTR, CSOR, PERF, and QUAL as
predictors of COMP; (2) COMP and LIKE as predictors of CUSA; and (3) COMP,
LIKE, and CUSA as predictors of CUSL.
The SPSS steps for testing collinearity are shown on the next slide for the first
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7
regression
run.
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10
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12
Bootstrapping
Which path coefficients
are significant?
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.
The above results show the significance of the path coefficients. Recall that
a T Statistic > 1.96 is significant with a two-tailed test, and >.98 is significant for a
one-tailed test. Note: path coefficients are shown in Original Sample column.
The results indicate that all paths are statistically significant using a one-tailed
test except COMP CUSL. But eight of the thirteen structural paths are
significant based on a two-tailed test.
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The four driver constructs for loyalty (CUSL) are the exogenous
constructs on the left side of the SEM model (these constructs are
actionable because they are formative and thus of primary concern for
the total effects analysis). The findings shown above indicate that
quality (QUAL = 0.2483) has the strongest total effect on loyalty,
followed by corporate social responsibility (CSOR = 0.1053),
attractiveness (ATTR = 0.1010), and performance (PERF = 0.0894).
Note that there are three mediating constructs (COMP, CUSA &
LIKE) between the exogenous driver constructs and the endogenous
construct CUSL whose role must be considered, but they are
relatively less actionable because they are reflective not formative.
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20
You can also examine the significance of the total effects. Above are
the T statistics for the total effects from the bootstrapping default report.
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21
Note: In the above table we only show the total effects for the four exogenous
driver constructs to the satisfaction and loyalty endogenous constructs,
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22
because these
areand
thesession
outcomes
the company is most interested in managing.
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SmartPLS,
presenters.
Identifying actionable
strategies based on
sizes of exogenous
construct weights.
By examining the outer weights of the construct indicators, we can identify which
specific element of quality (QUAL) needs to be addressed. Note that qual_6 has the
highest outer weight (0.3980). This survey question was [the company] seems to be
a reliable partner for customers so perceptions of reliability should be enhanced and
communicated to customers.
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