An Application of PLS in Multi-Group Analysis: The Need for Differentiated Corporate-Level Marketing in the Mobile Communications Industry

Abstract

The paper focuses on the application of a very common research issue in marketing: the analysis of the differences between groups’ structural relations. Although PLS path modeling has some advantages over covariance-based structural equation modeling (CBSEM) regarding this type of research issue – especially in the presence of formative indicators – few publications employ this method. This paper therefore presents an exemplary model that examines the effects of corporate-level marketing activities on corporate reputation as a mediating construct and, finally, on customer loyalty. PLS multi-group analysis is used to empirically test for differences between stakeholder groups in a sample from Germany’s mobile communications industry.