Structural Equation Modelling with Second-Order Confirmatory Factor Analysis: Critical Factors Influencing Consumer Behavior in Medical Tourism

Abstract

The chapter demonstrates an application of structural equation modelling (SEM) with latent variables in tourism research, and the associated statistics are described. First, we discuss the basic concepts of SEM, followed by an explanation of the key statistics and terms associated with this procedure. Then we describe the procedure for conducting SEM, including second-order confirmatory factor analysis (CFA). Finally, we describe the related technique of SEM analysis. In doing so, the chapter provides an application of structural equation modelling with latent variables, of which latent variables are hypothetical constructs that are invoked to explain observed covariation in behavior. The study aims to identify critical factors of consumer acceptance of medical tourism in Asia. The study employs factor analysis (i.e., exploratory factor analysis, confirmatory factor analysis, and internal consistency reliability tests) and structural equation modelling analysis and path analysis (i.e., the analysis of moment structures and regression analysis) using the survey data collected from a sample of 486 international tourists who visited South Korea in 2014.