The following paper presents current thinking and research on fit indices for structural equation modelling. The paper presents a selection of fit indices that are widely regarded as the most informative indices available to researchers. As well as outlining each of these indices, guidelines are presented on their use. The paper also provides reporting strategies of these indices and concludes with a discussion on the future of fit indices.
Keywords: Structural equation modelling, fit indices, covariance structure modelling, reporting structural equation modelling, model fit
Mixed Methodology Approach to Place Attachment and Consumption Behaviour: a Rural Town Perspective pp107-116
This paper discusses the use of both qualitative and quantitative methodologies in examining the influence people's attachment to their environment had on a number of consumption behaviours made by residents of a regional town in Western Australia. It discusses the concept of place attachment; its relationship with community attachment and the subsequent perceived value ascribed to living in the regional town of Narrogin, Western Australia. The use of a combination of qualitative and quantitative research methods provided an opportunity to take a macro perspective in quantifying major place and community attachment influencers in the consumption decision‑making process, while understanding the meanings and sentiment behind these concepts from a micro perspective. In‑depth interviews were undertaken with thirty‑two residents of Narrogin. These interviews used a photo‑elicitation technique in which residents were given a camera and required to take photographs of important places, people and aspects of their lives. The photos were then used as prompts for personal interviews, as respondents discussed the meaning, sentiments and stories behind the chosen photographs. The interviews provided a richness and depth to our understanding of the value of respondents' attachment to Narrogin. The use of this technique as a forerunner to the quantitative phase is discussed and recommendations for future use are detailed. The second phase of data collection involved a telephone survey of residents from Narrogin and its surrounding area (Shire of Narrogin). This was designed to test a model and a number of hypotheses developed from the literature and the qualitative phase of the research. The model presented place and community attachment as separate, yet related constructs affecting the perceived value ascribed to living in Narrogin. Value was seen as a mediating construct between place and community attachment and consumption (shopping and staying in Narrogin) decisions. Shopping decisions included shopping for everyday grocery items, white goods, farm equipment and machinery and various services including educational, medical and aged care. Exploratory Factor Analysis and Structural Equation Modelling were used to examine the prescribed model. The results identified different attachment weightings for the town and shire communities. In general, the model was a better predictor for the shire residents than it was for town residents. The results suggest different types of management strategies are required for businesses providing for the needs of town and for shire residents based on respective residents different attachment weightings. The paper discusses the use of the photo‑elicitation technique in the in‑depth interview stage of the research and its contribution to the development of the model as presented in the quantitative phase. Operationalising the constructs in this study has been, and still is, challenging for researchers. This paper provides valuable insights into the operationalisation process by utilising the combined methodologies approach. Uncovering stories, meanings and emotions can be integrated with an objective epistemology of attachment.
Keywords: mixed methodology, photo-elicitation technique, structural equation modelling, place attachment, community attachment, rural sustainability
Multicollinearity in Marketing Models: Notes on the Application of Ridge Trace Estimation in Structural Equation Modelling pp3-15
Abstract: Multicollinearity in Structural Equation Modelling (SEM) is often overlooked by marketing scholars. This is unfortunate as multicollinearity may lead to fallacious path coefficient estimates or even bring about statistical non‑significance of the parameter estimates. Previous empirical illustrations on mitigating the effects of multicollinearity are virtually non‑existent in the literature. The purpose of this paper is to empirically illustrate the problem of multicollinearity in marketing mod els and the use of ridge trace estimation in mitigating the effects of multicollinearity in SEM, using the LISREL program. Two slightly differing ridge estimation procedures are illustrated using real data with a multicollinearity problem: Method A, in wh ich the ridge constant is added manually to all diagonal elements of the correlation matrix of the variables in the model, and Method B, in which the ridge constant is added manually only to the diagonal elements of the correlation matrix of the exogenous and explanatory endogenous variables in the model. In evaluating suitable values of the ridge constant, the ridge trace method is used. It is concluded that ridge trace estimation is an effective way of mitigating the effects of multicollinearity in SEM. With same ridge constant values, both methods produce same point estimates of path coefficients, but Method B produces smaller standard errors of parameter estimates and larger squared multiple correlations than Method A.
Keywords: marketing modelling, multicollinearity, structural equation modelling, ridge trace estimation, LISREL