Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)


Practical Assessment of Good Practices in Structural Equation Modeling (SEM) Analysis: A Study on Consumer Socialization

Author(s): Eric Bindah

This study uncovers how various socialization factors (namely family and peer communication environment and television viewing) in the society could impact on young adult consumers’ orientation towards materialism. Materialism is a value that impact on consumers’ decision making and consumption patterns. This study provides an insight into how specific type of the family communication patterns at home, peer communication and television viewing influence the orientation of materialism among young adult consumers. Structural equation modeling (SEM) technique was adopted in this study. In particular, the researcher first developed the hypothetical general consumer socialization model for young adult consumers through relevant literature review. For the purpose of conducting the literature review, primary data were consistently assessed and relevant literature was organized chronologically in the field of consumer socialization and materialism which determine consumers’ consumption patterns. This step was very important since the method used to analyse the data was based on SEM technique approach, the research framework together with the hypotheses development needed a solid theoretical foundation. This research focuses on discussing the process of SEM analysis. The author briefly covers the procedures adopted for constructing the hypothetical model, testing the model, comparing the models with alternative models, and finalizing the model. Challenges of finalizing the measurements in confirmatory factor analysis (CFA) and modifying the consumer socialization model for young adult consumers are discussed. The interrelationships between different dimensions of family and peer communication and materialism are analysed using SEM. This study reviews the basic concepts, terminology and the applications of SEM.

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