Response-based segmentation using Finite Mixture Partial Least Squares: theoretical foundations and an application to American Customer Satisfaction Index Data

When applying multivariate analysis techniques in information systems and social science disciplines, such as management information systems (MIS) and marketing, the assumption that the empirical data originate from a single homogeneous population is often unrealistic. When applying a causal modeling approach, such as partial least squares (PLS) path modeling, segmentation is a key issue in coping with the problem of heterogeneity in estimated cause-and-effect relationships. This chapter presents a new PLS path modeling approach which classifies units on the basis of the heterogeneity of the estimates in the inner model. If unobserved heterogeneity significantly affects the estimated path model relationships on the aggregate data level, the methodology will allow homogenous groups of observations to be created that exhibit distinctive path model estimates. The approach will, thus, provide differentiated analytical outcomes that permit more precise interpretations of each segment formed. An application on a large data set in an example of the American customer satisfaction index (ACSI) substantiates the methodology’s effectiveness in evaluating PLS path modeling results.

Building bridges: the third sector responding locally to diversity

This paper focuses on a hitherto unstudied segment of the broad 'third sector': organisations and groupings that aim to build bridges (that is, increase interpersonal contacts) between people of different faiths and/or ethnic groups. We draw on the findings of an empirical study, conducted in three diverse urban areas of England, of community-level projects with bridge building as an explicit aim. We describe the characteristics of bridge-building activities and the challenges they face; both the organisational challenges and those that arise from the nature of bridge building itself. We conclude by exploring the implications of our findings for an understanding of the third sector generally and for the potential role of the sector in responding to our diverse society.