The application steps of structural equation modeling are as follows:
1. Build conceptual models and assume relationships
2. Measurement indicators and sample collection
3. Generate covariance matrix
4. Exploratory factor analysis
5. Confirmatory Factor Analysis
6. Reliability and validity analysis
7. Structural model checking
The following uses an example to show the specific application process of structural equation modeling and software:
Build conceptual models and hypothesize relationships
There is a famous trust-commitment theory in marketing, and we build a conceptual model based on this theory. According to this model, the following relationship is assumed:
• Assumption 1: Manufacturer to customer