Specifying the path model and examining data

The most effective way to learn how to use a statistical method is to apply it to a set of data. Throughout this book, we use a single example that enables you to do that. We start the example with a simple model, and in Chapter 5, we expand that same model to a much broader, more complex model. For our initial model, we hypothesize a path model to estimate the relationships between corporate reputation, customer satisfaction, and customer loyalty. 

The example will provide insights on:

(1) how to develop the structural model representing the underlying concepts/theory,

(2) the setup of measurement models for the latent variables,

(3) the structure of the empirical data used. 

Then, our focus shifts to setting up the SmartPLS 4 software (Ringle, Wende, & Becker, 2022) for PLS-SEM.


Specifying the path model and examining data


Exhibit A2.1 ■ Example of a Theoretical Model (Simple Model)
Types-of-Measurement-Models-in-the-Simple-Model





Indicators for Reflective Measurement Model Constructs

Data Matrix for the Indicator Variables

Welcome to our guide on creating your first regression model using SmartPLS! In this tutorial, we will guide you through the following steps:

  1. Selecting a SmartPLS workspace folder
  2. Creating a new project and importing a dataset

Throughout the tutorial, we will be using SmartPLS to perform a regression analysis and visualize the results. Make sure you have downloaded and installed the software before beginning. Let's get started!

Selecting a SmartPLS workspace folder

When you open SmartPLS for the first time, you will be prompted to Select a Workspace folder. This folder serves as the default location for storing all of your SmartPLS projects.

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