Capturing Customer Heterogeneity using a Finite Mixture PLS Approach

Hahn, Carsten; Johnson, Michael D.; Herrmann, Andreas; Hüber, Frank

doi:10.1007/bf03396655

Cited by 225 publications

(139 citation statements)

References 26 publications

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“…In our exploratory study context of examining the drivers and outcomes of wine consumption based on a cross-generation sample, PLS path modelling was considered as the appropriate method for the empirical tests of our hypotheses. PLS integrates principal components analysis with multiple regression (Hahn et al, 2002) based on least squares estimation with the primary objective to maximize the explanation of variance (or, equivalently, the minimization of error) in the dependent constructs of a structural equation model (Henseler et al, 2009). PLS path modelling is considered more as an exploratory approach than as a confirmatory one.…”

Section: Methodsmentioning

confidence: 99%

Customer value perception: cross-generational preferences for wine

Wiedmann

Behrens

Klarmann

et al. 2014

British Food Journal

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. Purpose -A deeper understanding of the key drivers of consumer wine perception is a major challenge in the domain of wine marketing. The purpose of this paper is to examine the various dimensions of customer-perceived value that lead the customers -in general and divided into different age groups -to choose and consume a certain wine. Design/methodology/approach -In the exploratory study context of examining value-related consumer attitudes and behavioural effects, the drivers and outcomes of wine consumption based on a cross-generation sample, PLS path modelling was considered for the empirical tests of our hypotheses. Findings -Though there exist differences between Generation X and Generation Y consumers, the empirical results are supportive of the hypothesized positive relations between financial, functional, individual and social perceptions that influence the desire for and the consumption of wine.Research limitations/implications -For future research, the findings presented in the paper support the importance of enlarging the size of the sample and collecting data in different countries to compare the results on an international level. Practical implications -Successful wine marketing strategies should focus on the customer's subjective expectations and individual value perceptions by addressing the specific value aspects that are highly relevant for consumer loyalty. Originality/value -The study results are valuable for researchers, managers and marketers because they address the question of how to measure and forecast the perceived value with the greatest influence on consumers' wine choices.

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Section: Methodsmentioning

confidence: 99%

Customer value perception: cross-generational preferences for wine

Wiedmann

Behrens

Klarmann

et al. 2014

British Food Journal

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“…Consequently, one cannot rule out that countries exhibiting fairly different levels of Regulatory, Business and Resources emerge in the same response-based group. The FIMIX-PLS procedure (Hahn et al, 2002;Ringle et al, 2008) is employed to account for the discrete heterogeneity residing in the data set of the destination competitiveness of 129 countries. Recent comparison studies of heterogeneity-capturing PLS methods by Esposito Vinzi et al (2007) and Sarstedt (2008) demonstrate that the FIMIX-PLS routine as implemented in SmartPLS excels five rivalling approaches.…”

Section: Considering Unobserved Heterogeneity Among the Destination Cmentioning

confidence: 99%

Tourism Destination Competitiveness: Second Thoughts on the World Economic Forum Reports

2011

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The Travel and Tourism Competitiveness Reports of the World Economic Forum elaborate the Travel and Tourism Competitiveness Index (TTCI) as an overall measure of destination competitiveness for 130 economies worldwide. From a tourism management point of view, a measure such as the TTCI is expected to be instrumental in explaining and predicting the tourism performance of receiving countries. This study explores several ways to transform the TTCI into a formative structural model. Partial least squares path modelling, PLS regression, mixture modelling and non-linear covariance-based structural equation modelling are applied to examine the TTCI's predictive power. The analysis probes possible measures for improvement. The destination countries may be subject to unobserved heterogeneity with regard to how the various constituents of competitiveness act on tourism performance. Interaction phenomena seem to prohibit a simple cause-effect pattern and non-linear relationships show encouraging results.

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“…Since the ECSI model was not analysed yet regarding the existence of mutual exclusive homogenous subgroups in terms of its relations, there is not previous information about possible sources of heterogeneity (observed heterogeneity), i.e., about the variables that could be beyond the different segments. Therefore, in order to identify the graduates' segments, the FInite MIXture Partial Least Squares (FIMIX-PLS) method will be applied (Hahn et al, 2002). This method is particularly adequate for the analysis of unobserved heterogeneity in PLS-PM (Rigdon et al, 2010;Ringle et al, 2010;Sarstedt, 2008), i.e., to identify segments when there is no prior information about the relevant segmentation variables.…”

Section: Introductionmentioning

confidence: 99%

Uncovering unobserved heterogeneity in the ECSI model: an application in higher education in tourism

Eurico¹,

Valle²,

Marques³

et al. 2015

Proceedings of the 2nd International Symposium on Partial Least Squares Path Modeling: The Conference for PLS Users

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This research explores the European Consumer Satisfaction Index model applied to higher education in tourism by accounting for unobserved heterogeneity. In particular, it intends to identify segments of High Education Institutions (HEI)' consumers based on the structural model estimates of the European Consumer Satisfaction Index (ECSI), enlarged with the employability construct. A model-based segmentation approach using FIMIX in PLS path modelling is used. The ECSI was properly adjusted to the educational framework and has shown its effectiveness when assessing students' satisfaction regarding the attended HEI. Two distinctive graduates' segments were identified using a sample of 166 HEIs' consumers. Results confirm the assumption of heterogeneity as the relationships differ across segments and the need for HEIs to differently target those segments in such a competitive context.

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Capturing Customer Heterogeneity using a Finite Mixture PLS Approach

Cited by 225 publications

References 26 publications

Customer value perception: cross-generational preferences for wine

Customer value perception: cross-generational preferences for wine

Tourism Destination Competitiveness: Second Thoughts on the World Economic Forum Reports

Uncovering unobserved heterogeneity in the ECSI model: an application in higher education in tourism

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