Abstract
The structural equation modeling approach is widely used to analyze relationships and causation among manifestly observed and intrinsically latent variables, and control observation or measurement errors in economics, sociology, and psychology. The main objective of this study was to investigate the effects of three variables e-commerce, brand and packaging on the value added of saffron by using a structural equation model. Results showed that packaging parameter with regression weight of 0.91 has the greater correlation to the latent variable of “factor” and it shows that it has the share of high value added to two other scales. Also based on this result, it can be said that three scales together have more value added in the foreign market (0.35 coefficient) toward domestic market (0.26 coefficient). Key words: Structural equation modeling (SEM), e-commerce, brand, packaging, saffron.
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