A CPLS-based Customer Satisfaction Model

Traditional PLS path modeling based customer satisfaction model could only handle continuous or Likert scale like variables. This study proposed an algorithm called categorical partial least squares (CPLS) to handling categorical variables in customer satisfaction model. Both categorical and numerical variables can be jointly analyzed in the same model and the proposed algorithm is suitable for both Mode A (reflective measurement model) and Mode B (formative measurement model). This algorithm was illustrated empirically in the context of a household appliance brand's customer satisfaction study. A complete process of using CPLS path modeling including model development, model assessment and the applications of the results was demonstrated. Moreover, the authors concluded with the limitations of their study and suggestions for future research.