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1981 · Journal of Marketing Research

Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics

Claes Fornell, David F. Larcker

Several issues relating to goodness of fit in structural equations are examined. The convergence and differentiation criteria, as applied by Bagozzi, are shown not to stand up under mathematical or statistical analysis. The authors argue that the choice of interpretative statistic must be based on the research objective. They demonstrate that when this is done the Fornell-Larcker testing system is internally consistent and that it conforms to the rules of correspondence for relating data to abstract variables.

13,118 citations1 views
DOI: 10.1177/002224378101800313
1981 · Journal of Marketing Research

Evaluating Structural Equation Models with Unobservable Variables and Measurement Error

Claes Fornell, David F. Larcker

The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.

69,925 citations1 views
DOI: 10.1177/002224378101800104
1980 · Journal of Marketing Research

A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions

Richard L. Oliver

A model is proposed which expresses consumer satisfaction as a function of expectation and expectancy disconfirmation. Satisfaction, in turn, is believed to influence attitude change and purchase intention. Results from a two-stage field study support the scheme for consumers and nonconsumers of a flu inoculation.

7,605 citations1 views
DOI: 10.1177/002224378001700405