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Capturing and Treating Unobserved Heterogeneity by Response Based Segmentation in PLS Path Modeling. A Comparison of Alternative Methods by Computational Experiments

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Abstract

Segmentation in PLS path modeling framework results is a critical issue in social sciences. The assumption that data is collected from a single homogeneous population is often unrealistic. Sequential clustering techniques on the manifest variables level are ineffective to account for heterogeneity in path model estimates. Three PLS path model related statistical approaches have been developed as solutions for this problem. The purpose of this paper is to present a study on sets of simulated data with different characteristics that allows a primary assessment of these methodologies.

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Bibliographic Info

Paper provided by ESSEC Research Center, ESSEC Business School in its series ESSEC Working Papers with number DR 07019.

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Length: 24 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:ebg:essewp:dr-07019

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Postal: ESSEC Research Center, BP 105, 95021 Cergy, France
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Keywords: Partial Least Squares; Path Modeling; Unobserved Heterogeneity;

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  1. Viswanath Venkatesh & Ritu Agarwal, 2006. "Turning Visitors into Customers: A Usability-Centric Perspective on Purchase Behavior in Electronic Channels," Management Science, INFORMS, vol. 52(3), pages 367-382, March.
  2. Baroni, Michel & Barthélémy, Fabrice & Mokrane, Mahdi, 2005. "A PCA Factor Repeat Sales Index (1973-2001) To Forecast Apartment Prices in Paris (France)," ESSEC Working Papers DR 05002, ESSEC Research Center, ESSEC Business School.
  3. Claes Fornell & Peter Lorange & Johan Roos, 1990. "The Cooperative Venture Formation Process: A Latent Variable Structural Modeling Approach," Management Science, INFORMS, vol. 36(10), pages 1246-1255, October.
  4. Claes Fornell & William T. Robinson & Birger Wernerfelt, 1985. "Consumption Experience and Sales Promotion Expenditure," Management Science, INFORMS, vol. 31(9), pages 1084-1105, September.
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Cited by:
  1. Ringle, Christian M. & Sarstedt, Marko & Schlittgen, Rainer & Taylor, Charles R., 2013. "PLS path modeling and evolutionary segmentation," Journal of Business Research, Elsevier, vol. 66(9), pages 1318-1324.

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