Estimation Methods for Detecting Non-Additive Effects in Structural Equation Models : An Exhibition of the Two-Stage Least Squares Method in Consumer Service Evaluation Networks

Marketers call for the examination of more complex functional structures of the links between service evaluation constructs. However, it seems that including and estimating non-additive effects in the structural equation modeling framework is a daunting task. Therefore, marketers need to be acquainted with the use of these methodologies in a concise and simple manner. Building from Joreskog (1998) who suggest using Bollen's (1995) estimation method, the present study reviews the relevant literature and exhibits the use of Bollen's (1995) two-stage least squares estimation method in the context of a consumer service evaluation network