Cronbach's Reliability Study

Great Essays
Reliability
Table 4.5
Reliability Test
Variable Cronbach’s Alpha N of Items Remark
Brand Awareness 0.825 5 Reliable
Brand Association 0.757 3 Reliable
Perceived Quality 0.763 4 Reliable
Brand Loyalty 0.890 5 Reliable
After validity test, this is the result of the reliability test. The requirement to be reliable is the Cronbach’s Alpha must be more than 0.7. As seen from the table 4.5 the Cronbach’s Alpha of every variables are more than 0.7 which are remarked as reliable. To be explained, the Cronbach’s Alpha value of Brand Awareness is 0.825, Brand Association’s value is 0.757, the Cronbach’s Alpha of Perceived Quality value is 0.763, and the last variable Brand Loyalty Cronbach’s Alpha has 0.890 value.
4.3 Structural Equation Modeling (SEM)
…show more content…
The table 4.6 shows the result of SEM Model Fit. Measuring the Chi-square is the first step to indicates wheter the model fits the data or indicates the different between the estimated population covariance and the sample covariance. The smaller value of Chi-square means the value are more better. As seen from the table above the Chi-quare value is 0.000 which means the value is significant. The value also means that the difference of estimated population covariance and the sample covariance is very low, or can be concluded as equal.
The next step is measuring the value of CMIN/DF, which means the Chi-square divided by degree of freedom. Table 4.6 above shows the value of CMIN/DF is 1.926, can be obtained from the discrepancy divided by degrees of freedom (344.733 / 179 = 1.926). Therefore the model is good
…show more content…
As seen from the table 4.7 above the P value of Brand Loyalty is ***, maeans the probability of getting a critical ratio as large as 4.249 in absolute value is less than 0.001. In other words, the regression weight for Brand Loyalty towards Purchasing Decision is significantly different from zero at the 0.001 level (two-tailed). Thus the hypothesis of Brand Loyalty towards Purchase Decision is significant and supported by the data.
The other significance of the data can be shown from table 4.7, which is Perceived Quality. The probability of getting a critical ratio as large as 2.961 in absolute value is less than 0.003. In other words, the regression weight for Perceived Quality towards Purchasing Decision is significantly different from zero at the 0.01 level (two-tailed). Thus the hypothesis of Perceived Quality towards Purchase Decision is significant and supported by the data.
The next data as can be seen from the table 4.7 above is the P value of Brand Awareness is 0.926. This means the probability of getting a critical ratio as large as 0.093 in absolute value is 0.926. In other words, the regression weight of Brand Awareness in the prediction of Purchasing Decision is not significantly different from zero at the 0.05 level (two-tailed). Thus the hypothesis of Brand Awareness towards Purchase Decision is not supported by the data and not

Related Documents

  • Improved Essays

    R2 is a measure of goodness of fit. It shows how much the behaviour of Y (GR %) is explained by the behaviour of X (RR %). A value of 0.449 may be acceptable depending on the data been analysed but quite low in analysis of these observations. From the summary output R-squared is 0.449 or it is 44.9%, then it can be said that 44.9% of the variance is explained by the model. The result of a R² = 0.449 means that the best fit equation for the data shows a correlation lesser of 50%.…

    • 1040 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Here, the possibility that the difference is due to mere random chance is less than 1% therefore the difference in sales performance between males (mean=4175.92) and females (mean=5675.97) in week 2 is strongly significant. A conclusive argument can be drawn that in week 2, females have a better sales performance than male…

    • 997 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Initiating Structure

    • 747 Words
    • 3 Pages

    Furthermore, the significance level of this relationship is as high as 0.640, which affirmed that there is no significance relationship between leadership participation and job satisfaction. Hence, Hypothesis 3 is rejected as well. H4: There is a significant relationship between ethical leadership behaviour and job satisfaction. Looking at the last table, Hypothesis 4 is accepted. The relationship between ethical leadership behaviour and job satisfaction is found to be significant at the significance level of .000, which is lesser than .05.…

    • 747 Words
    • 3 Pages
    Decent Essays
  • Great Essays

    The T-test score that compared the average reaction time for the picture memory test and the facial memory test subjects was 26.682. The two-tailed p-value corresponding to the t-score was less than 0.0001 meaning that the test results were significantly significant. Because the p-value results were so low, it is safe to conclude that the difference between these two means is greater than what might have resulted from sampling error and may therefore reject the null hypothesis that these two different tests have the same mean reaction…

    • 984 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    Cross Price Elasticity

    • 997 Words
    • 4 Pages

    Immediately, this number helps us predict that the elasticity is inelastic since, once again, the absolute value of -0.5 is less than 1.0. However, unlike Scenario 1, cross-price elasticity tries to determine how a price change in product Y will impact the demand of product X. Cross-price elasticity is calculated with the same formula mentioned in the previous example, E = %Q / %P. Therefore, if we have a price increase of 10% in product Y, we can determine that the demand of product X will drop by 5%. This indicates that the two products being compared are complements, since they have a negative elasticity, in this case -0.5. The reasoning behind this is the fact that when the price of complement Y rises, it will create an inverse reaction to the demand of complement X.…

    • 997 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    For example, if a fund beta is 0.62, it is 38% less volatile than the current market value. It doesn’t carry much risk and return will not be high. If a beta is 1.52, it means that it is 52% more volatile than the market. Therefore, the fund would be riskier and the return would be higher, theoretically. Janus Henderson Enterprise has a beta of 0.91.…

    • 1298 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Accuracy is represented by percent error. The lower the percent error the more accurate the measurement is. For Example a low percent error of 4% is accurate vs 100%. Precision is when the estimated value is not as close to the actual value, but all of the estimated values are close to each other. Precision is represented by Average Deviation.…

    • 965 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Nike, Inc.: Case Study

    • 1474 Words
    • 6 Pages

    Basing on the efficient frontier MA shows that it is possible to reduce the standard deviation (risk) via the combination of the two stocks as a portfolio. The standard deviation result of the portfolio in the attached excel (d) reveals a lower rate than original risk within Nike and Timberland respectively. In the other writing, the portfolio of the two stocks takes with a lower risk. Subsequently, the expected return also has a change in the portfolio. The expected return of the minimum variance portfolio is slightly lower than Nike but it is still distinctly upper than Timberland.…

    • 1474 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    IV. Analyses A. Bivariate Analysis Using Figure 1, 2, and Table 2, I discover that the correlation coefficients and linear relationship between the X and Y variables are not as strongly positive as I had thought. In fact, the correlation coefficient is negative with a very small absolute value. Both X_1 and X_2 have a slightly negative correlation coefficient of -0.05 with dependent variable Y. This indicates as the amount of acquirer initiations increase, sale premia will remain almost the same as it was before those initiations occurred.…

    • 1356 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    They argue that the behavioural rationale for this is that most people are more strongly affected by losses rather than gains, even if the amounts involved are the same. In the context of price response, they contend, we may view a price higher than the reference price as a "loss" (from the consumer's perspective), and a price lower than the reference price as a "gain." Prospect theory thus implies that consumers would be more strongly affected in the former than in the latter situation. According to Boztuğ & Hildebrandt (2005) prospect theory assumes a range of zero around the reference price. They explain that the prospect theory is used to describe decisions under risk, pointing out that the price decision can be seen as a risky decision, hence the concepts of prospect theory can be used to evaluate prices.…

    • 1784 Words
    • 8 Pages
    Great Essays