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John is the marketing vice president of a computer manufacturer. He is interested in learning more about the driving forces behind customer loyalty, particularly
John is the marketing vice president of a computer manufacturer. He is interested in learning more about the driving forces behind customer loyalty, particularly factors such as brand reputation, pricing, and customer satisfaction. John has previously attended an MBA course on brand reputation, and he recalled the five underlying indicators that contribute to a company's brand reputation; they are corporate social responsibility, financial performance, governance, leadership, and product/service quality. John carried out a structural equation modeling using SmartPLS because his goal is to understand the relationships among these factors. Based on this information, John developed the conceptual framework for his research project: Corporate Social Responsibility (COSOR) Financial Performance (FINAN) Brand Governance (GOVER) Reputation (REPUT) Leadership (LEADR) Product/ Service Quality (QUALI) Pricing (PRICE) Customer Satisfaction (SATIS) Customer Loyalty (LOYAL) PLS-SEM is conducted and the following output is obtained. The lower right-hand part of the output is enlarged as follows: 924 932 742 0.000 REPUT 0.220 505 1.000 0.360 0.224 0.858 satis_1 0.921 0.849 loyal_1 0.966 loyal_2 SATIS 0.445 0.369 LOYAL loyal_3 price_1 0.911 0.676 0.000 price_2 PRICE a) What is the overall coefficient of determination (R2) in this model? Also, is this number good or bad? b) Which factor affects Customer Loyalty [LOYAL] the most? c) Which factor affects Customer Satisfaction [SATIS] the least? d) loyal_1, loyal_2, and loyal_3 have loadings of 0.921, 0.849, and 0.966 respectively, are they good indicators of Loyalty [LOYAL]? e) Is the hypothesized path relationship between REPUT [Reputation] and Customer Loyalty [LOYAL] statistically significant?
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