A Journey through the Spatial Data Mining and Geographic Knowledge Discover Jungle

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Presented at SAS Business Analytics 2011 event in Singapore.

Presented at SAS Business Analytics 2011 event in Singapore.

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  • 1. SAS Business Analytics Singapore Conference 2011How to Get More Out of Your Data Using Structural Equation Models? Tan Teck Kiang Nanyang Technological University 25 May 2011, 15:00-15:30 The Fullerton Hotel
  • 2. Content• Another Mining Tool - Structural Equation Model• What is SEM?• Areas of Application• Examples – Tourist Royalty – Airline Services• References
  • 3. Mining Tools – Enterprise Miner• Decision Tree• Cluster Analysis• Logistic Regression PROC• Neural network CALIS• …… SAS/STAT• Structural Equation Model ?
  • 4. What is SEM?• SEM model translates a series of cause-effect variables into a composite model that describes the relationships of these variables and show the extent of these relationships.
  • 5. Areas of Application for SEM• Business research – Marketing, Management, Economics, Organization• Survey Research• Behavioral and Social Sciences – Psychology, Sociology, Psychiatry, Criminal Science, Family Studies, Political Science, Developmental Research, and Social Work• Medical Research – Nursing, Pharmacy, Epidemiology, and Sport Science• Environmental Science• Education – Student Achievement, Policy Studies, and Counseling• Longitudinal Study
  • 6. Airline Services• How price, airline service quality, value, passenger satisfaction and airline image determine passengers’ future behavioral intentions?
  • 7. Airline ServicesSource: Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality and marketing variables onpassengers’ future behavioural intentions, Transportation Planning and Technology, 29(5), 359-381.
  • 8. Determine Relationships -ve -ve -ve +veSource: Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality and marketing variables onpassengers’ future behavioural intentions, Transportation Planning and Technology, 29(5), 359-381.
  • 9. Airline Services +ve -ve +ve +veSource: Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality and marketing variables onpassengers’ future behavioural intentions, Transportation Planning and Technology, 29(5), 359-381.
  • 10. Tourist Royalty• Benefits of maintaining a solid base of loyal customers.• SEM helps tourism managers to develop and implement effective relationship marketing strategies.• Examining interrelationships among image, quality, satisfaction, trust and the tourists’ behavior variables.
  • 11. Tourist Royalty Satisfaction Quality Loyalty Image TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 12. Measurement Structure Model + ModelHow to Specify themeasure relationship ofLoyalty and Loyalty andQuality? Quality.
  • 13. Quality The lodging facilities and rooms are clean The lodging employees have a clean and neat appearance The clients are treated cordially and affably. The lodging employees know the functions that they carry out. The lodging foods are well presented and flavorful. Loyalty I will speak well about this lodging service to other people I will recommend the lodging if someone ask for my advise I will encourage my friends and relatives to visit this lodging In the next vacation I intend to return to this lodging I would come continually even if the lodging price will increaseSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 14. Measurement Model EmployeesFacilities Employee Treated Food Know Clean Neat Cordially Flavorful Functions Quality
  • 15. Structure Model Satisfaction Quality Loyalty Image TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 16. Structure Model Satisfaction Quality 0.46 0.04 Loyalty 0.27 Image 0.23 TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 17. 0.52 Satisfaction Direct Effect Quality 0.46 0.04 Loyalty 0.27 Image 0.23 TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 18. Indirect 0.52 Satisfaction Direct Effect Effect Quality 0.46 0.04 Loyalty 0.27 Image 0.23 Indirect Effect = 0.52 x 0.46 = 0.24 Total Effect = 0.04 + 0.24 Trust = 0.28Source: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 19. Indirect 0.52 Satisfaction Effect (1) Quality 0.41 0.46 0.77 0.04 Loyalty 0.27 Image 0.23 0.76 0.14 TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 20. Indirect 0.52 Satisfaction Effect (2) Quality 0.41 0.46 0.77 0.04 Loyalty 0.27 Image 0.23 0.76 0.14 TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 21. Indirect 0.52 Satisfaction Effect (3) Quality 0.41 0.46 0.77 0.04 Loyalty 0.27 Image 0.23 0.76 0.14 TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 22. Indirect 0.52 Satisfaction Effect (4) Quality 0.41 0.46 0.77 0.04 Loyalty 0.27 Image 0.23 0.76 0.14 TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 23. Indirect 0.52 Satisfaction Effect (5) Quality 0.41 0.46 0.77 0.04 Loyalty 0.27 Image 0.23 0.76 0.14 TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 24. 0.52 Satisfaction Quality 0.41 R2 0.86 0.46 0.77 0.04 Loyalty 0.27 Image 0.23 0.76 0.14 TrustSource: Loureiro and Gonzalez (2008). The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty, Journalof Travel and Tourism Marketing, V 25(2), 117-136.
  • 25. Back to Airline Services
  • 26. Airline Services n.s. 0.29 0.11 0.42 0.59 -0.08 R2 0.78 0.21 0.53 0.18 0.64 0.42 n.s. n.s.Source: Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality and marketing variables onpassengers’ future behavioural intentions, Transportation Planning and Technology, 29(5), 359-381.
  • 27. Airline Services – Satisfaction 0.29 0.42 0.59 0.64 0.42Source: Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality and marketing variables onpassengers’ future behavioural intentions, Transportation Planning and Technology, 29(5), 359-381.
  • 28. Passenger Satisfaction• Passenger satisfaction had a significant effect on airline image and passengers’ behavioral intentions.• Passenger satisfaction depend on service quality and passengers’ value perceptions.
  • 29. Proc Calis Data = Airline;PathIntentions <--- Satisfaction,Intentions <--- Price,Intentions <--- Value,Intentions <--- Image,…Value <--- Price,Value <--- Quality;Run;
  • 30. Summary• SEM – About cause and effect relationships – Quantify the extent• Likely Effects and their Impacts – Examine likely consequences if one of the factors turn as unexpected – Decision Making (Scenario Analysis)• SAS Syntax
  • 31. References• Kumar et al (2007). The association of consumer expectations, experiences and satisfaction with newly prescribed medications. Quality of Life Research, 16, 1127-1136.• Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality and marketing variables on passengers’ future behavioural intentions, Transportation Planning and Technology, 29(5), 359-381.
  • 32. Thank You
  • 33. Education – Longitudinal Study Student Gender Emotional Problem Parent Initial Growth in Performance PerformanceEng 01 Eng 02 Eng 03 Eng 04 Eng 05 Eng 06 Eng 07
  • 34. Airline Services +ve -ve +ve +veSource: Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality and marketing variables onpassengers’ future behavioural intentions, Transportation Planning and Technology, 29(5), 359-381.
  • 35. Airline Services 0.42 -0.08 0.21 0.42Source: Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality and marketing variables onpassengers’ future behavioural intentions, Transportation Planning and Technology, 29(5), 359-381.
  • 36. Airline Services – Service Quality 0.29 0.42 0.59 0.21 0.53 0.64 0.42Source: Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality and marketing variables onpassengers’ future behavioural intentions, Transportation Planning and Technology, 29(5), 359-381.
  • 37. Airline Services Quality• Service quality is a driver of passenger satisfaction and perceived value.• Airlines should strive to develop strategies for improving service quality.