Analysis
The hypothesized structural equation model
was tested using LISREL 8 (Jöreskog and
Sörbom 2006). We used a two step approach to
model testing as recommended by Anderson
and Gerbing (1988). The first step includes the
construction and validation of a measurement
model, which specifies the relationships among
the observed variables and latent variables. The
second step involves testing the structural
model vsiiich specifies the relationships among
the latent variables. The measurement model
allows assessment of convergent and
Marketing Management Journal, Fall 2011
discriminant validify, while the structural model
provides an assessment of nomological validify
(Schumacker and Lomax 2004). We assumed
no error on the single item variables.