Skip to main content
Log in

The Impact of Non-Normality and Estimation Methods in SEM on Satisfaction Research in Marketing

  • Published:
Quality and Quantity Aims and scope Submit manuscript

Abstract

This paper discusses consequences of violating the normal distribution assumption imbedded in Structural Equation Modeling (SEM). Based on real data from a large sample customer satisfaction survey we follow the procedures as suggested in leading textbooks. We document consequences of this practice and discuss its impact on decision making in marketing.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • A.-M. Aish K. G. Jøreskog (1990) ArticleTitleA panel model for political efficacy and responsiveness: An application of LISREL 7 with weighted least squares Quality and Quantity 24 405–426 Occurrence Handle10.1007/BF00152013

    Article  Google Scholar 

  • Bearden, W. O., Teel, J. E. & Crockett, M. (1980). A path model of consumer complaint behavior. In: R. P. Bagozzi (ed.), Marketing in the 80’s: Changes & Challenges. Chicago: American Marketing Association.

  • R. C. Blattberg J. Deighton (1996) ArticleTitleManaging marketing by the customer equity test Harvard Business Review 74 IssueID4 136–145

    Google Scholar 

  • R. N. Bolton J. H. Drew (1991) ArticleTitleA longitudinal analysis of the impact of service changes on customer attitudes Journal of Marketing 55 IssueIDJanuary 1–9

    Google Scholar 

  • R. N Bolton J. H. Drew (1991) ArticleTitleA multistage model of customers assessment of service quality and value Journal of Consumer Research 54 IssueIDApril 69–82

    Google Scholar 

  • S. J. Breckler (1990) ArticleTitleApplication of covariance structure modeling in psychology: Cause for concern? Psychological Bulletin 107 IssueID2 260–273 Occurrence Handle10.1037/0033-2909.107.2.260

    Article  Google Scholar 

  • M. W. Browne (1974) ArticleTitleGeneralized least-squares estimators in the analysis of covariance structures South African Statistical Journal 8 1–24

    Google Scholar 

  • M. W. Browne (1984) ArticleTitleAsymptotically Distribution-Free Methods for Analysis of covariance structures British Journal of Mathematical and Statistical Psychology 37 62–83

    Google Scholar 

  • Chou, C.-P. & Bentler, P. M. (1995). Estimates and tests in structural equation modeling. In: H. Hoyle (ed.), Structural Equation Modeling–Concepts, Issues, and Applications. Thousand Oaks: Sage Publications.

  • C.-P. Chou P. M. Bentler A. Satorra (1991) ArticleTitleScaled test statistics and robust standard errors for non-normal data in covariance structure analysis: A Monte-Carlo study British Journal of Mathematical and Statistical Psychology 44 347–357

    Google Scholar 

  • P. J. Curran S. G. West J. F. Finch (1991) ArticleTitleThe robustness of test statistics to nonnormality and specification error in confirmatory analysis Psychological Methods 1 IssueID1 16–29

    Google Scholar 

  • S. Toit Particledu M. Toit Particledu (2000) Interactive LISREL User’s Guide. Scientific Software International Lincolnwood

    Google Scholar 

  • Fornell, C. (1989). The blending of theoretical and empirical knowledge in structural equations with unobservables. In: H. Wold (ed.), Theoretical Empirisism. New York: Paragon Press.

  • C. Fornell (1992) ArticleTitleA national customer satisfaction barometer: The Swedish Experience Journal of Marketing 56 IssueID1 1–21

    Google Scholar 

  • C. Fornell M. D. Johnson E. W. Anderson J. Cha B. E. Bryant (1996) ArticleTitleThe american customer satisfaction index: Nature, purpose and findings Journal of Marketing 60 IssueID4 7–18

    Google Scholar 

  • J. F. Hair R. E. Anderson R. L. Tatham W. C. Black (1995) Multivariate Data Analysis Prentice Hall New Jersey

    Google Scholar 

  • L. Hu P. M. Bentler Y. Kano (1992) ArticleTitleCan test statistics in covariance structure analysis be trusted? Psychological Bulletin 112 IssueID2 351–362 Occurrence Handle10.1037/0033-2909.112.2.351

    Article  Google Scholar 

  • M. D. Johnson C. Fornell (1991) ArticleTitleA framework for comparing customer satisfaction across individuals and product categories Journal of Economic Psychology 12 IssueID2 267–286 Occurrence Handle10.1016/0167-4870(91)90016-M

    Article  Google Scholar 

  • M. D. Johnson A. Gustafsson T. W. Andreassen L. Lervik J. Cha (2001) ArticleTitleThe Evolution and future of national customer satisfaction index models Journal of Economic Psychology 22 IssueID2 217–245 Occurrence Handle10.1016/S0167-4870(01)00030-7

    Article  Google Scholar 

  • Jøreskog, K. G. (1993). Testing structural equation models. In: K. A. Bollen & J. S. Long (eds.), Testing Structural Equation Models. Newbury Park: Sage Publications.

  • K. B. Jøreskog D. Sørbom S. Toit Particledu M. Toit Particledu (1999) LISREL 8: New Statistical Features Scientific Software International Lincolnwood

    Google Scholar 

  • J. R. Magnus H. Neudecker (1988) Matrix Differential Calculus with Applications in Statistics and Econometrics Wiley New York

    Google Scholar 

  • J. A. Martilla J. C. James (1977) ArticleTitleImportance-performance analysis Journal of Marketing 41 IssueID1 77–79

    Google Scholar 

  • R. L. Oliver (1980) ArticleTitleA cognitive model of the antecedents and consequences of satisfaction decisions Journal of Marketing Research 17 IssueID4 46–49

    Google Scholar 

  • R. L. Oliver (1981) ArticleTitleMeasurement and evaluation of satisfaction process in retailer selling Journal of Retailing 57 IssueIDFall 25–48

    Google Scholar 

  • Oliver, R. L. (1992). An investigation of the attributes basis of emotion and related affects in consumption: Suggestions for a stage-specific satisfaction framework. In: J. Sherry & B. Sternhalt (eds.), Advances in Consumer Research. Provo: Association of Consumer Research.

  • Olsen, S. O., Wilcox, J. & Olsson, U. H. (2002). Consequences of ambivalence on satisfaction and loyalty. Working paper, Texas Tech University.

  • Olsson, U. H., Foss, T. & Troye, S. V. (1998). The performance of alternate estimation methods in structural equation modeling under conditions of misspecification and non-normality. Working paper, Norwegian School of Management.

  • U. H. Olsson T. Foss S. V. Troye (2003) ArticleTitleDoes the ADF fit function decrease when the Kurtosis increases? British Journal of Mathematical and Statistical Psychology 56 289–303 Occurrence Handle10.1348/000711003770480057

    Article  Google Scholar 

  • U. H. Olsson T. Foss S. V. Troye R. D. Howell (2000) ArticleTitleThe performance of ML, GLS, and WLS estimation in structural equation modeling under conditions of misspecification and nonnormality Structural Equation Modeling 7 IssueID4 557–595 Occurrence Handle10.1207/S15328007SEM0704_3

    Article  Google Scholar 

  • Olsson, U. H., Troye, S. V. & Foss, T. (2001). The role of fit assessment in structural equation modeling: Can fit be compared across estimation methods? Working paper, Norwegian School of Management.

  • U. H. Olsson S. V. Troye R. D. Howell (1999) ArticleTitleTheoretic fit and empirical fit: The performance of maximum likelihood versus generalized least squares estimation in structural equation models Multivariate Behavioral Research 34 IssueID1 31–59 Occurrence Handle10.1207/s15327906mbr3401_2

    Article  Google Scholar 

  • W. D. Perreault F. A. Russ (1976) ArticleTitlePhysical distribution service in industrial purchase decisions Journal of Marketing 40 IssueIDApril 3–10

    Google Scholar 

  • R. T. Rust C. Moorman P. R. Dickson (2002) ArticleTitleGetting return on quality: revenue expansion, cost reduction, or both Journal of Marketing 66 IssueID4 7–24 Occurrence Handle10.1509/jmkg.66.4.7.18515

    Article  Google Scholar 

  • Rust, R. T. & Oliver, R. L. (1994). Service quality: insights and managerial implications from the frontier. In: R. T. Rust & R. L. Oliver (eds.), Service Quality: New Directions in Theory and Practice. Thousand Oaks: Sage.

  • R. T. Rust A. J. Zahorik (1993) ArticleTitleCustomer satisfaction, customer retention, and market share Journal of Retailing 69 IssueID2 193–215 Occurrence Handle10.1016/0022-4359(93)90003-2

    Article  Google Scholar 

  • Rust, R. T., Zahorik, A. J. & Keiningham, T. L. (1994). Return on quality (ROQ): Making service quality financially accountable. Marketing Science Institute.

  • R. T. Rust V. A. Zeithaml K. N. Lemon (2000) Driving Customer Equity: How Customer Lifetime Value is Reshaping Corporate Strategy Free Press New York

    Google Scholar 

  • Satorra, A. & Bentler, P. M. (1988). Scaling correction for chi-square statistics in covariance structure analysis. The business and economic statistics section of the American statistical association.

  • B. Schneider S. S. White M. C. Paul (1998) ArticleTitleLinking service climate and customer perceptions of service quality: Test of a causal model Journal of Applied Psychology 83 IssueID2 150–163 Occurrence Handle10.1037/0021-9010.83.2.150

    Article  Google Scholar 

  • J. L. Simon (1974) ArticleTitleInterpersonal welfare comparisons can be made - and used for redistribution decisions Kyklos 27 IssueID1 63–98

    Google Scholar 

  • R. A. Westbrook (1980) ArticleTitleA rating scale for measuring product/service satisfaction Journal of Marketing 44 IssueIDFall 68–72

    Google Scholar 

  • K-H. Yuan P. M. Bentler (1997) ArticleTitleImproving parameter tests in covariance structure analysis Computational Statistics & Data Analysis 26 177–198 Occurrence Handle10.1016/S0167-9473(97)00025-X

    Article  Google Scholar 

  • V. A. Zeithaml R. T. Rust K. N. Lemon (2001) ArticleTitleThe customer pyramid: Creating and serving profitable customers California Management Review 43 IssueID4 118–142

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Tor W. Andreassen.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Andreassen, T.W., Lorentzen, B.G. & Olsson, U.H. The Impact of Non-Normality and Estimation Methods in SEM on Satisfaction Research in Marketing. Qual Quant 40, 39–58 (2006). https://doi.org/10.1007/s11135-005-4510-y

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11135-005-4510-y

Keywords

Navigation