Abstract

ABSTRACT In this paper we present a comprehensive method for creating a customer satisfaction index using a survey instrument. Kim et al. (2012) has shown how to reduce the number of survey questions using PageRank centrality while capturing the true representative of the overall purpose of the survey. We apply confirmatory factor analysis to this parsimonious survey in order to extract “weights' on the questions that are used in a linear model of computing the customer satisfaction index. Throughout the paper an analysis of an existing data set is implemented to illustrate the procedure with which a Customer Satisfaction Index is obtained. In addition the validity of the model is tested using bootstrap sampling. Keywords Survey Instrument Design, PageRank Centrality, Confirmatory Factor Analysis, Customer Satisfaction Index (CSI)

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