Satisfaction Drivers in Retail Banking: Comparison of Partial Least Squares and Covariance Based Methods
The primary goal of the study is to diagnose satisfaction and loyalty drivers in Polish retail banking sector. The problem is approached with Customer Satisfaction Index (CSI) models, which were developed for national satisfaction studies in the United States and European countries. These are multiequation path models with latent variables. The data come from a survey on Poles' usage and attitude towards retail banks, conducted quarterly on a representative sample. The model used in the study is a compromise between author's synthesis of national CSI models and the data constraints. There are two approaches to the estimation of the CSI models: Partial Least Squares - used in national satisfaction studies and Covariance Based Methods (SEM, Lisrel). A discussion is held on which of those two methods is better and in what circumstances. In this study both methods are used. Comparison of their performance is the secondary goal of the study.
Volume (Year): 1 (2009)
Issue (Month): 1 (March)
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- O'Loughlin, Christina & Coenders, Germà, 2002. "Application of the European Customer Satisfaction Index to Postal Services. Structural Equation Models versus Partial Least Squares," Working Papers of the Department of Economics, University of Girona 4, Department of Economics, University of Girona.
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