Theory

Separate structural models are devised for the three dimensions of non-financial analysis assessed by EPSI. The objective is to provide results that are relevant as well as exhibits good (statistical) properties (reliability) and have predictive financial capability. For the external customer dimension a Cause-Effect structure with the following (latent) aspects has been developed:

• Image
• Customer Expectations
• Customer Perceived Product Quality
• Customer Perceived Service Quality
• Customer Perceived Value
• Customer Satisfaction
• Customer Loyalty/Trust

The Aspects are to be seen as latent variables determined by a set of manifest constructs (questions in the master questionnaire). The model is estimated by structural equation modelling (Partial Least Squares, PLS). This gives weighted averages for the Aspects. When modelled this way the implicit priorities of respondents are directly taken into account in the analysis.