Estimation Methods for Detecting Non-Additive Effects in Structural Equation Models: An Exhibition of the Two-Stage Least Squares Method in Consumer Service Evaluation Networks

The Marketing Review, Vol. 10, No. 2, pp. 135-147

12 Pages Posted: 3 Aug 2009 Last revised: 20 Jul 2011

See all articles by Pavlos A. Vlachos

Pavlos A. Vlachos

ALBA Graduate Business School,The American College of Greece

Date Written: August 2, 2009

Abstract

Marketers call for the examination of more complex functional structures of the links between service evaluation constructs. However, it seems that including and estimating non-additive effects in the structural equation modeling framework is a daunting task. Therefore, marketers need to be acquainted with the use of these methodologies in a concise and simple manner. Building from Joreskog (1998) who suggest using Bollen’s (1995) estimation method, the present study reviews the relevant literature and exhibits the use of Bollen’s (1995) two-stage least squares estimation method in the context of a consumer service evaluation network.

Keywords: Curvilinear Effects, Two-Stage Least Squares, Latent Variables, Service Quality

JEL Classification: C13, M31

Suggested Citation

Vlachos, Pavlos A., Estimation Methods for Detecting Non-Additive Effects in Structural Equation Models: An Exhibition of the Two-Stage Least Squares Method in Consumer Service Evaluation Networks (August 2, 2009). The Marketing Review, Vol. 10, No. 2, pp. 135-147. Available at SSRN: https://ssrn.com/abstract=1442862

Pavlos A. Vlachos (Contact Author)

ALBA Graduate Business School,The American College of Greece ( email )

6-8, Xenias str., Ampelokipoi
Athens, 115 28
Greece

HOME PAGE: http://www.alba.acg.edu

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