Structure Equation Modelling
The client is an overseas company in banking. They are tracking satisfaction levels across all processes involved in banking to a client base. This includes overall satisfaction levels and satisfaction across all aspects of the process. They were seeking insights on this information.
SEM was used to understand the relationship between micro satisfaction levels and overall satisfaction. Econometric modeling was then used to quantify these relationships.
SEM is confirmatory rather than exploratory. Accordingly, there was a bit of work building the latent factors: staff conduct & environment, customer needs, waiting time & convenience. One of the key challenges was understanding the relationship of some key micro satisfaction indicators that impact across a number of latent factors e.g. satisfaction with range of services.