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Title: Linking structural equation modeling to Bayesian networks: Decision support for customer retention in virtual communities
Authors: Gupta, S. 
Kim, H.W. 
Keywords: Bayesian networks
Customer retention
Decision support
Structural equation modeling
Virtual community
Issue Date: 2008
Citation: Gupta, S., Kim, H.W. (2008). Linking structural equation modeling to Bayesian networks: Decision support for customer retention in virtual communities. European Journal of Operational Research 190 (3) : 818-833. ScholarBank@NUS Repository.
Abstract: Bayesian networks are limited in differentiating between causal and spurious relationships among decision factors. Decision making without differentiating the two relationships cannot be effective. To overcome this limitation of Bayesian networks, this study proposes linking Bayesian networks to structural equation modeling (SEM), which has an advantage in testing causal relationships between factors. The capability of SEM in empirical validation combined with the prediction and diagnosis capabilities of Bayesian modeling facilitates effective decision making from identification of causal relationships to decision support. This study applies the proposed integrated approach to decision support for customer retention in a virtual community. The application results provide insights for practitioners on how to retain their customers. This research benefits Bayesian researchers by providing the application of modeling causal relationships at latent variable level, and helps SEM researchers in extending their models for managerial prediction and diagnosis. © 2007 Elsevier B.V. All rights reserved.
Source Title: European Journal of Operational Research
ISSN: 03772217
DOI: 10.1016/j.ejor.2007.05.054
Appears in Collections:Staff Publications

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