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Chapter 92: Structural Equation Modelling in Marketing – Part 1: Introduction and Basic Concepts
Nearly 10 years ago, Kevin Gray and I presented a paper (MacLean and Gray, 1998) at the (then) Market Research Society of Australia Annual Conference, introducing the benefits of structural equation modelling (SEM) and its application to what practising market researchers do on a daily basis: i.e. on the basis of things we can measure, we attempt to make predictions of things we cannot measure.
We explained that for market research, SEM provides an opportunity (in fact, a requirement) to hypothesize models of market behaviour, and to test or confirm these models statistically.
Technically, SEM estimates the unknown coefficients in a set of ...