EMPERIO Marketing Lab
Curriculum

Structural Equation Modeling (SEM)

Structural equation modeling combines a measurement model for latent constructs with a structural model for relationships.

Cheat sheet

Structural equation modeling combines a measurement model for latent constructs with a structural model for relationships.

What to check first

Specify the constructs and indicators in advance. Check whether the measures distinguish trust from satisfaction.

How to make the call

Use follow-up data or experiments for causal claims. Cross-sectional paths support associations.

AAPOR · Best practices for survey research · further reading for research & consumer behaviour

Indian practice case

Fictional scenario

A Bengaluru service marketplace surveys trust, perceived risk and repurchase intent.

Reveal the step-by-step solution
  1. Diagnose the problem.

    Specify the constructs and indicators in advance. Check whether the measures distinguish trust from satisfaction.

  2. Work through the evidence.

    Estimate the structural paths and check model fit, uncertainty and alternative models.

  3. Recommend and validate.

    Use follow-up data or experiments for causal claims. Cross-sectional paths support associations.

More Indian cases

Interview question

How would you use structural equation modeling (sem) to make the decision in this case? Explain which data you need first and what would change your recommendation.

See what a strong answer includes

Estimate the structural paths and check model fit, uncertainty and alternative models. Use follow-up data or experiments for causal claims. Cross-sectional paths support associations.

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