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HAL Id: hal-00528579

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PLS Path Modeling with Ordinal Data

Simona Balzano, Giovanni C. Porzio, Laura Trinchera

To cite this version:

Simona Balzano, Giovanni C. Porzio, Laura Trinchera. PLS Path Modeling with Ordinal Data. 34th

Annual conference of the German Classification Society (GFKL’10), Jul 2010, Karlsruhe, Germany.

pp.54. �hal-00528579�

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PLS Path Modeling with Ordinal Data

Simona Balzano1, Giovanni C. Porzio1, Laura Trinchera2

1 University of Cassino, Italy, s.balzano@unicas.it, porzio@eco.unicas.it

2 SUPELEC, France, laura.trinchera@supelec.fr

Abstract. Structural Equation Models (SEM) (J¨oreskog, S¨orbom 1979) are strictly related to consumer analysis, as they suit situations where a set of unobservable phenomena (called latent variables) can be described through sets of observable variables (called manifest variables). Among the methods for estimating SEM, in this paper we focus on PLS Path Modeling (Tenenhaus et al., 2005). However, in consumer analysis manifest variables are often expressed on an ordinal scale, as they represent judgments about some qualitative aspects. This yields incoherence with respect to the linearity hypothesis that underlie PLS Path Modeling. For this reason, it is worth to consider how PLS Path Modeling may be adjusted for the analysis of ordinal data, a topic that has found increasing interest in recent times (e.g. Jakobowicz, Derquenne, 2007; Lauro et al, 2008; Russolillo, 2010 ). After a review of the existing literature, in this work we propose a new approach, based on ordinal logistic regression (Agresti, 2002), aiming both at accounting for non linearity and at drawing a continuous scoring criterion for ordinal categories. Depending upon the causal relationships between manifest and latent variables (defining the so-called measurement model), we can incur in two alternative models: one (called reflective model) is defined as a set of simple regression models, each with ordinal response variable and continuous predictor, the other (called formative model) is defined by a multiple regression model with ordinal predictors. We address our main interest to the former case.

References

AGRESTI, A. (2002): Categorical Data Analysis. Wiley.

JAKOBOWICZ E., DERQUENNE C. (2007): A modified PLS path modeling algo- rithm handling reflective categorical variables and a new model building strat- egy. Computational Statistics and Data Analysis, 51(8), 3666-3678.

J ¨ORESKOG K.G, S ¨ORBOM D. (1979): Advances in Factor Analysis and Structural Equation Models, Cambridge, Massachusetts, Abstract Books.

LAURO C.N, GRASSIA M.G., NAPPO D., MIELE R. (2008): Methods of quan- tification of qualitative variables and their use in Structural Equation Models.

Book of short papers SFC-CLADAG, Caserta.

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2 Simona Balzano, Giovanni C. Porzio, Laura Trinchera

RUSSOLILLO G. (2010) PLS methods for Non-Metric data, PhD thesis, Universit´a degli Studi di Napoli Federico II, Italy.

TENENHAUS M., ESPOSITO VINZI V., CHATELIN Y.M., LAURO N.C. (2005):

PLS Path Modeling. Computational Statistics and Data Analysis, 48, 159-205.

Keywords

Ordinal Logistic Regression, PLS Path Modeling, Structural Equation Models

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