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Scale Development, Validation and Use of Structural Equation Modelling to Test the Impact of Consumer Confidence and Persuasibility on Dissonance

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  • Sanjana Brijball Parumasur
  • Nabendra Parumasur

Abstract

This study develops and validates a scale to assess the impact of consumer confidence and persuasibility on dissonance and applies the instrument to high-end consumers. It also assesses the relationship between consumer confidence and persuasibility as these constructs merge to influence dissonance. A sample of 200 new motor vehicle buyers who purchased from a leading and reputable motor vehicle company in KwaZulu-Natal, South Africa, was drawn using stratified random sampling based on range of motor vehicle (bottom, middle, top). Initially, exploratory factor analysis (EFA) was used to extract the factors. The reliability of the modified questionnaire was then assessed using Cronbach’s Coefficient Alpha. Thereafter, confirmation factor analysis (CFA) was undertaken to develop and test the model structure in SEM, which generated a good model fit. Pearson r was computed to assess the relationship amongst the dimensions. Using structural equation modelling, the results support a significant relationship between consumer persuasibility and dissonance and a significant but inverse relationship between consumer confidence and dissonance, and confidence and persuasibility respectively.

Suggested Citation

  • Sanjana Brijball Parumasur & Nabendra Parumasur, 2016. "Scale Development, Validation and Use of Structural Equation Modelling to Test the Impact of Consumer Confidence and Persuasibility on Dissonance," Journal of Economics and Behavioral Studies, AMH International, vol. 8(1), pages 58-68.
    • Handle: RePEc:rnd:arjebs:v:8:y:2016:i:1:p:58-68
    DOI: 10.22610/jebs.v8i1(J).1206
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    References listed on IDEAS

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    1. Stuart, O. D. J., 1984. "A note on the measurement, quantification, and use of consumer confidence," Journal of Economic Psychology, Elsevier, vol. 5(2), pages 125-138, June.
    2. repec:cup:judgdm:v:7:y:2012:i:2:p:173-180 is not listed on IDEAS
    3. Geoffrey N. Soutar & Jillian C. Sweeney, 2003. "Are There Cognitive Dissonance Segments?," Australian Journal of Management, Australian School of Business, vol. 28(3), pages 227-249, December.
    4. Crowley, Ayn E & Hoyer, Wayne D, 1994. "An Integrative Framework for Understanding Two-Sided Persuasion," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(4), pages 561-574, March.
    5. Bearden, William O & Hardesty, David M & Rose, Randall L, 2001. "Consumer Self-Confidence: Refinements in Conceptualization and Measurement," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(1), pages 121-134, June.
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    1. Sanjana Brijball Parumasur & Nabendra Parumasur, 2017. "Synthesizing the Relationship between Reported Dissonance and Post-Purchase Responses in High Involvement Decisions Using Structural Equation Modeling (SEM)," Journal of Economics and Behavioral Studies, AMH International, vol. 8(6), pages 114-126.

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