Pietro Giorgio Lovaglio

In this paper we propose a methodology for the estimation of Customer Satisfaction (CS) conceived as a Latent variable (LV) specified in the American Customer Satisfaction Index (ACSI) structural model. The current proposal puts forward: the approaches of structural equations based on LISREL (Joreskog, 1978), since it involves the dual problem of indeterminacy of the latent scores and the normality assumed; -the PLS approach, because of its drawbacks (shown in depth in the paper). The ACSI model will be estimated in a Reduced Rank Regression (RRR) framework, showing that under non restrictive hypothesis, shared by PLS, the structural model can be viewed as a RRR model between two blocks of manifest variables. Finally in the paper an application is shown to assess the students’ satisfaction in respect to the service of a big real estate agency, operating in the houses-to-let market, in Bologna (Italy) for 2002.