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- Title
Genetic algorithm segmentation in partial least squares structural equation modeling.
- Authors
Ringle, Christian; Sarstedt, Marko; Schlittgen, Rainer
- Abstract
When applying the partial least squares structural equation modeling (PLS-SEM) method, the assumption that the data stem from a single homogeneous population is often unrealistic. For the full set of data, unobserved heterogeneity in the PLS path model estimates may result in misleading interpretations. This research presents the PLS genetic algorithm segmentation (PLS-GAS) method to account for unobserved heterogeneity in the path model estimates. The results of a simulation study guide an assessment of this novel approach. PLS-GAS allows for uncovering unobserved heterogeneity and identifying different groups within a data set. In an application on customer satisfaction data and the American customer satisfaction index model, the method identifies distinctive group-specific PLS path model estimates which allow for a further differentiated interpretation of the results.
- Subjects
GENETIC algorithms; MARKET segmentation; STRUCTURAL equation modeling; LEAST squares; ECONOMETRIC models; CUSTOMER satisfaction
- Publication
OR Spectrum, 2014, Vol 36, Issue 1, p251
- ISSN
0171-6468
- Publication type
Article
- DOI
10.1007/s00291-013-0320-0