SAS Business Analytics  Singapore Conference 2011How to Get More Out of Your Data   Using Structural Equation            M...
Content• Another Mining Tool - Structural Equation  Model• What is SEM?• Areas of Application• Examples  – Tourist Royalty...
Mining Tools – Enterprise Miner•   Decision Tree•   Cluster Analysis•   Logistic Regression           PROC•   Neural netwo...
What is SEM?• SEM model translates a series of cause-effect  variables into a composite model that  describes the relation...
Areas of Application for SEM• Business research   – Marketing, Management, Economics, Organization• Survey Research• Behav...
Airline Services• How price, airline service quality, value,  passenger satisfaction and airline image  determine passenge...
Airline ServicesSource: Park, J.-W., Robertson, R., and Wu, C.-L. (2006). Modeling the impact of airline service quality a...
Determine Relationships                                                       -ve                                         ...
Airline Services                                                                                                          ...
Tourist Royalty• Benefits of maintaining a solid base of loyal  customers.• SEM helps tourism managers to develop and  imp...
Tourist Royalty                                                                                  Satisfaction             ...
Measurement         Structure  Model       +      ModelHow to            Specify themeasure           relationship ofLoyal...
Quality      The lodging facilities and rooms are clean      The lodging employees have a clean and neat appearance      T...
Measurement Model                                      EmployeesFacilities    Employee    Treated                    Food ...
Structure Model                                                                                  Satisfaction             ...
Structure Model                                                                                  Satisfaction             ...
0.52                 Satisfaction                            Direct                                                       ...
Indirect                                             0.52                 Satisfaction                            Direct  ...
Indirect                                              0.52                 Satisfaction      Effect (1)                   ...
Indirect                                              0.52                 Satisfaction      Effect (2)                   ...
Indirect                                              0.52                 Satisfaction      Effect (3)                   ...
Indirect                                              0.52                 Satisfaction      Effect (4)                   ...
Indirect                                              0.52                 Satisfaction      Effect (5)                   ...
0.52                 Satisfaction                                        Quality                           0.41           ...
Back to Airline Services
Airline Services                                                          n.s.                                            ...
Airline Services – Satisfaction                                                                0.29                       ...
Passenger Satisfaction• Passenger satisfaction had a significant effect  on airline image and passengers’ behavioral  inte...
Proc Calis   Data = Airline;PathIntentions   <--- Satisfaction,Intentions   <--- Price,Intentions   <--- Value,Intentions ...
Summary• SEM  – About cause and effect relationships  – Quantify the extent• Likely Effects and their Impacts  – Examine l...
References• Kumar et al (2007). The association of consumer  expectations, experiences and satisfaction with  newly prescr...
Thank You
Education – Longitudinal Study                                                          Student     Gender                ...
Airline Services                                                                                                          ...
Airline Services                                                                                                          ...
Airline Services – Service Quality                                                                0.29                    ...
Airline Services Quality• Service quality is a driver of passenger  satisfaction and perceived value.• Airlines should str...
A Journey through the Spatial Data Mining and Geographic Knowledge Discover Jungle
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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.

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

  1. 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. 2. Content• Another Mining Tool - Structural Equation Model• What is SEM?• Areas of Application• Examples – Tourist Royalty – Airline Services• References
  3. 3. Mining Tools – Enterprise Miner• Decision Tree• Cluster Analysis• Logistic Regression PROC• Neural network CALIS• …… SAS/STAT• Structural Equation Model ?
  4. 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. 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. 6. Airline Services• How price, airline service quality, value, passenger satisfaction and airline image determine passengers’ future behavioral intentions?
  7. 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. 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. 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. 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. 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. 12. Measurement Structure Model + ModelHow to Specify themeasure relationship ofLoyalty and Loyalty andQuality? Quality.
  13. 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. 14. Measurement Model EmployeesFacilities Employee Treated Food Know Clean Neat Cordially Flavorful Functions Quality
  15. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 25. Back to Airline Services
  26. 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. 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. 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. 29. Proc Calis Data = Airline;PathIntentions <--- Satisfaction,Intentions <--- Price,Intentions <--- Value,Intentions <--- Image,…Value <--- Price,Value <--- Quality;Run;
  30. 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. 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. 32. Thank You
  33. 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. 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. 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. 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. 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.

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